January 30, 2026
Finance

SoFi Shares Decline Following Initial Gains Amid Robust Fourth-Quarter Earnings

Despite Earnings Exceeding Expectations, Stock Retraces After Initial Rally

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Summary

SoFi Technologies experienced a share price decline on Friday after an early surge prompted by better-than-anticipated fourth-quarter financial results. The fintech company reported earnings per share and revenue figures that surpassed consensus estimates, but the stock pulled back as investors took profits following the initial rally. Management projects significant growth for 2026, including increased membership, revenue, and profitability metrics.

Key Points

SoFi reported fourth-quarter earnings per share of $0.13, exceeding the consensus estimate of $0.12.
Revenue for the quarter increased significantly by $273.72 million compared to the previous year.
For 2026, management projects a 30% increase in total members and adjusted net revenue of approximately $4.655 billion.
Adjusted EBITDA for 2026 is expected to be around $1.6 billion, with an 18% adjusted net income margin projected.

On Friday, SoFi Technologies Inc (NASDAQ:SOFI) saw its stock price drop after an initial advance that followed the release of its strong fourth-quarter financial report. The company posted earnings per share of $0.13, slightly above analysts' consensus estimate of $0.12. Additionally, revenue increased substantially compared to the previous year, reaching $273.72 million more than the same quarter a year ago.

This performance initially propelled the stock higher; however, by later in the trading session, shares had retraced those gains. This decline appears to be the result of profit-taking, a common market response when stocks rally ahead of earnings announcements.

Looking forward, SoFi Technologies provided optimistic guidance for the full fiscal year 2026. The company anticipates expanding its total membership base by at least 30% year-over-year. Correspondingly, adjusted net revenue is forecasted to increase by approximately 30%, reaching an estimated $4.655 billion. Management projects adjusted EBITDA of about $1.6 billion, reflecting a margin near 34%. Furthermore, adjusted net income is expected to rise to roughly $825 million, representing an 18% margin. The company also anticipates adjusted earnings per share of around $0.60.

Regarding the first quarter of 2026, SoFi expects adjusted revenue of approximately $1.04 billion, adjusted EBITDA close to $300 million, adjusted net income near $160 million, and adjusted earnings per share of about $0.12.

Turning to analyst perspectives, price target estimates for SoFi have generally moved higher in recent weeks. Notably, Barclays maintained an Equal-Weight rating as of January 6 but raised its price target to $28 from $23. On the same day, Goldman Sachs retained a Neutral rating yet lowered its price target to $24 from $27. Earlier, Truist Securities upheld its Hold rating but adjusted its target price downward from $31 to $28. UBS, conversely, remained Neutral but substantially increased its price target from $20.50 to $27.50 at the end of October.

As of the latest trading session, SoFi shares declined 5.95% to $22.92 according to Benzinga Pro data. The volatility reflects active market dynamics, with traders responding swiftly to the company’s financial disclosures and growth outlook.

Market observers note that such swift movements are not uncommon in response to earnings surprises, as investors calibrate expectations and reassess valuations based on incoming data and future guidance.

Risks
  • Stock price volatility following earnings announcements may impact investor returns in the short term.
  • Price target adjustments by analysts indicate uncertainty in market expectations and valuation consensus.
  • Profit-taking behavior after initial post-earnings rallies could result in downward pressure on the stock price.
  • Future financial guidance projections are subject to execution risk and market conditions which may differ from forecasts.
Disclosure
Education only / not financial advice
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Ticker Sentiment
SOFI - neutral
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