Down 50% From 2026 Highs, Should You Buy Sofi Before July 29 Earnings?
SoFi's stock has cratered while its profits soared, creating a rare gap between price and performance heading into July 29 earnings. Whether that gap is a trap or a generational buying opportunity depends on two numbers the market will see…
SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) enters its July 29 Q2 earnings report with a sharp disconnect between its stock and its business. The stock is down 37.13% year to date, but loan originations rose 68%, net income climbed 134%, and management still expects about 30% adjusted revenue growth for the year.
At $16.46 per share, the big question ahead of Q2 earnings is whether SoFi’s falling stock price has created a buying opportunity.
Sofi Stock Is Falling While Profits Climb 135%
Q1 2026 delivered record loan originations of $12.18 billion, up 68% YoY, GAAP net income of $166.73 million, up 134.45% YoY, and operating income up 150.12%. Members grew 35% YoY, and 43% of new products came from existing members, the cross-sell flywheel management has spent five years engineering.
Full-year 2026 guidance calls for $4.655 billion in adjusted net revenue (about 30% growth) and $0.60 in adjusted EPS, with medium-term guidance for a 38% to 42% adjusted EPS CAGR through 2028.
A 28x P/E Looks Cheap Against 38% to 42% EPS Growth
SoFi trades at a forward P/E of 28 with a PEG ratio of 0.81. While banks typically command lower earnings multiples than the broader market, SoFi’s sub-1 PEG ratio suggests its valuation remains attractive relative to its growth. The analyst consensus price target sits at $20.58 vs the stock’s current price of $16.46, and SoFi has now met or beaten estimates for seven consecutive quarters.
SoFi’s Bank Charter Gives It an Advantage Rivals Cannot Match
Investors reaching for cheaper fintech exposure might look at LendingClub (NYSE:LC) or Upstart Holdings (NASDAQ:UPST). LendingClub carries a forward P/E of 12, but its quarterly revenue growth is 12.5% YoY, a fraction of SoFi’s. Upstart is more expensive at a forward P/E of 36 on a 4.21% profit margin and a 0.9% operating margin, but the business lacks a bank charter or a deposit base.
SoFi’s 14.8% profit margin and 18.3% operating margin show the business has strong quality, though investors have to pay up for it with the stock trading at a 28x forward P/E.
The Two Risks Investors Must Watch on July 29 Q2 Earnings
The Technology Platform segment fell 27% YoY on a large client departure, and personal loan charge-offs ticked up sequentially to 3.03% from 2.80%. Both are manageable against the broader setup, but are worth watching further. Deposits of $40.24 billion now fund over 90% of liabilities, cost of funds fell 48 basis points, and net income more than doubled in the same quarter.
If charge-offs remain controlled and SoFi maintains its 2026 outlook, the current valuation could represent one of the more attractive growth setups in fintech.
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Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
