SoFi Technologies (NASDAQ:SOFI) delivered a standout performance in 2025, but 2026 has started on a far more volatile note. Despite posting better-than-expected fourth-quarter results, the fintech stock has pulled back sharply. In this SoFi stock forecast 2026, we break down the recent selloff, the company’s fundamentals, and why one analyst believes shares could rally more than 40% from current levels.

SoFi Stock Struggles Despite Strong Results

SoFi Technologies (NASDAQ:SOFI) currently carries a market capitalization of about $25.7 billion. The stock is down 19.1% year to date, significantly underperforming the S&P 500 Index ($SPX), which has gained 1.4% over the same period.

Selling pressure has intensified in recent weeks, with shares falling roughly 22.7% over the past month alone. SoFi stock now sits approximately 55% below its 52-week high of $32.73 reached last November.

The decline comes even after SoFi reported impressive fourth-quarter numbers. However, concerns around valuation and potential dilution from future capital raises have weighed on investor sentiment. Broader market dynamics have also played a role, as investors rotate away from higher-growth and crypto-linked names in favor of more defensive sectors.

Valuation remains a sticking point. Even after the pullback, SoFi stock trades at 34.33 times forward earnings and 5.9 times sales. These figures are well above sector medians of 10.95 times forward earnings and 2.98 times sales. The premium suggests investors are still pricing in strong long-term growth, leaving less room for error.

Inside SoFi’s Record Q4 Performance

While SoFi stock has struggled, the fundamentals tell a different story. In its fiscal 2025 fourth-quarter results reported on Jan. 30, SoFi exceeded Wall Street’s expectations on both revenue and earnings.

Total net revenue surged 40% year over year to $1.03 billion, topping the consensus estimate of $985.9 million. The company also crossed the billion-dollar quarterly revenue milestone for the first time, with adjusted net revenue rising 37% to a record $1.013 billion.

Fee-based revenue jumped 53% to a record $443 million. Growth in the Loan Platform Business, along with higher referral, interchange, and brokerage fees, drove much of this performance. Combined, the Financial Services and Technology Platform segments generated $579.1 million in net revenue, representing a 61% year-over-year increase.

User growth remained a major strength. SoFi added 1 million new members during the quarter, bringing total membership to 13.7 million, up 35% from a year earlier. Products increased 37% to a record 20.2 million.

Profitability also improved. SoFi posted its ninth consecutive profitable quarter, reporting adjusted net income of $174 million and earnings of $0.13 per share, up 160% year over year and above the $0.11 estimate. Adjusted EBITDA climbed 60% to a record $318 million.

Looking ahead, management expects membership to grow at least 30% in 2026. Adjusted net income is projected at approximately $825 million, representing an 18% margin, while adjusted earnings per share are forecast at around $0.60.

Innovation and Diversification Support the Bull Case

Another important element in the SoFi stock forecast 2026 is the company’s expanding product ecosystem. During the quarter, SoFi became the first nationally chartered bank to launch crypto trading for consumers and introduced its own stablecoin, SoFiUSD, on a public blockchain.

The company also rolled out blockchain-powered international remittances in more than 30 countries. These initiatives signal SoFi’s ambition to deepen its presence in digital assets and global payments.

Meanwhile, Galileo Financial Technologies, SoFi’s technology arm, supports 128.5 million accounts worldwide. This platform extends SoFi’s reach beyond its direct member base and provides capital-light, fee-based revenue streams.

Importantly, about 40% of new products are opened by existing members. This cross-selling dynamic strengthens engagement and increases lifetime value per customer. Analysts see this “one-stop shop” strategy as a competitive advantage.

Why Citizens JMP Sees 40% Upside

Citizens JMP recently upgraded SoFi Technologies (NASDAQ:SOFI) to “Outperform” from “Market Perform” and assigned a $30 price target. That target implies roughly 40.5% upside from current levels.

According to analyst Devin Ryan and his team, SoFi’s recent weakness is driven more by technical and style rotation factors than by deteriorating fundamentals. As investors shift away from higher-growth themes like fintech and crypto, SoFi has been caught in the downdraft.

However, Citizens JMP believes the company represents one of the most compelling long-term compounders in fintech. The firm argues that SoFi’s improving profitability, diversification away from traditional lending, and expanding fee-based revenue streams enhance its risk-reward profile.

Cryptocurrency and digital asset initiatives could also serve as incremental upside catalysts if adoption accelerates.

What Wall Street Thinks About SoFi Stock

Despite the bullish call from Citizens JMP, Wall Street remains divided. Out of 24 analysts covering SoFi stock, seven rate it a “Strong Buy” and two a “Moderate Buy.” Ten analysts recommend holding the stock, while five maintain bearish ratings.

The consensus rating stands at “Hold.” The average price target of $27.32 implies roughly 29% upside, while the highest target of $38 suggests potential gains of as much as 79%.

In this SoFi stock forecast 2026, the debate centers on valuation versus growth. If SoFi continues to execute, expand margins, and grow its ecosystem, the recent slump could prove temporary. For risk-tolerant investors, the pullback may offer an opportunity. However, elevated multiples mean expectations remain high, and volatility could persist.