Is SoFi Stock a Buy After Falling 43% in 2026?

SoFi Technologies (NASDAQ: SOFI) saw its stock price surge 15% on Tuesday, Oct. 27, following blowout third-quarter results.

The jump provides some relief for investors, as the share price had been down about 43% year-to-date as of last week, trading at $14.61 per share at the market close on Oct. 23. With Tuesday's rally, SoFi stock was at $16.40 per share, still down 35% year-to-date.

Was the post-earnings bounce a one-time thing, or does it set SoFi stock back on an upward trajectory?

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Blowout earnings, guidance raise

SoFi's record Q3 saw the digital bank and financial services company increase revenue 44% year over year to a record $1.4 billion. Fee revenue increased 44% to $571 million, while net interest income climbed 59% to $929 million. Adjusted EBITDA rose 70% to a record $470 million, while adjusted net income surged 74% to $243 million, or $0.18 per share. Both revenue and earnings exceeded analysts' estimates by a significant margin.

The huge gains were fueled by a 35% year-over-year increase in member growth to a record 17.1 million. Product growth, which comprises the various services members use, rose 44% to a record 26.7 million.

It allowed SoFi to raise its full-year guidance. Revenue guidance was bumped up to $5.04 billion from a range of $4.75 billion to $4.85 billion the previous quarter. That suggests a 40% year-over-year increase. Total members are projected to rise at least 30% over the year.

Management also raised adjusted EBITDA guidance to $1.66 billion, representing an EBITDA margin of 33%. That's up from $1.6 billion last quarter. It increased its adjusted net income guidance to $840 million, representing a 17% margin. Previously, net income guidance was $825 million. Also, adjusted EPS for the year was boosted to $0.61, up from $0.60.

Management also made estimates for 2027, calling for revenue of $6.4 billion, or 27% over projected 2026 revenue. Adjusted EBITDA is targeted at $2.24 billion, representing a margin of 35%, while adjusted net income is estimated at $1.28 billion, representing a margin of 20%. That would be about 52% higher than 2026.

Finally, adjusted EPS in fiscal 2027 is expected to be $0.90, which would be 48% above 2026 projections. That was well above consensus projections of $0.82 EPS.

Is SoFi stock a buy?

A strong Q3 report and a promising outlook give SoFi investors much to get excited about.

This strong report shows why SoFi could continue to outperform in a perhaps more difficult economic environment. Because of its low overhead as a digital provider, it can offer more competitive rates than most traditional banks. And if rates do start ticking lower in the years ahead, that should benefit SoFi by spurring more lending.

Even after the post-earnings rally, SoFi stock is still pretty cheap on a forward earnings basis with a forward P/E of 17. Based on its outlook through 2027, SoFi still looks like a solid buy.

Dave Kovaleski 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.