SoFi Expects About 50% Earnings Growth in 2027 and Says It Won't Need to Raise New Capital

There's no denying that SoFi Technologies' (NASDAQ: SOFI) growth story is a compelling one. But there's also no denying that it has issued a bunch of stock to fund this growth. Since its mid-2021 public offering, this online bank's outstanding share count has grown from 365 million to nearly 1.4 billion, with another $1.5 billion worth of SOFI shares created and sold just at the end of last year...55 million shares at $27.50 apiece. Given its history, some investors are understandably worried another round of dilutive fundraising is in the offing.

However, SoFi's capital-raising days may finally be in the rearview mirror, with growth being self-sustaining using just its current cash flow.

That's the word from CFO Chris Lapointe anyway, who said as much during October's Q3 earnings conference call when laying out SoFi's earnings growth projections for the year ahead.

Bullish guidance

SoFi Technologies didn't leave investors wondering anything. Based on its results through the third quarter, the company upped its 2026 full-year revenue guidance to $5.04 billion, up 40% from 2025's top line. It's also now calling for per-share earnings of $0.61 versus last year's $0.39, up from Q2's expectation of $0.60 per share.

Then the fireworks really start.

Image source: Getty Images.

With a relatively tough 2026 -- which saw the loss of some of its institutional platform business -- on the verge of coming to a close, the company finally expects its true growth rate to start shining through. A revenue projection of $6.4 billion for 2027 is a 27% increase over this year's projected sales, and with this ever-growing scale SoFi anticipates net income of $1.28 billion next year, or a profit of $0.90 per share, up 47% from this year's expected per-share bottom line.

It can do it. The company's already on the right trajectory, driving 35% year-over-year growth in customer headcount in Q3 -- adding a record-breaking 1.2 million customers during the three months ending in September -- yet growing its total active products/services usage 44% higher as more than half of product sales were made to existing customers. The organization simply needs to continue doing what it's doing, which is making more and more consumers comfortable with the idea of a bank without brick-and-mortar branches.

Priced in?

The million-dollar question, of course, is whether this self-sustaining profit growth is already fully reflected in this ticker's price, or if there's upside potential from here? Priced at just over 17 times next year's expected per-share profits, some of this growth is indeed already factored in. Most of it isn't, however, particularly given what's likely after 2027.

With only 17.1 million customers onboard, versus roughly 270 million adults living in the United States, there's room for growth. Indeed, longer term, the company's 2030 goals imply at least $8 billion in revenue, although it could conceivably be doing considerably more business by then. That level of sales should push profits to within sight of $2.00 per share by that year. So, from this perspective, SOFI is well undervalued here.

Analysts think so anyway. Their consensus 12-month price target of $20.67 is more than 30% above this ticker's present price. And I think that makes sense.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.