SoFi Stock (SOFI) Trades at a Discount Ahead of July 29 Earnings Despite Record Profits

SoFi Technologies walks into its July 29 second-quarter earnings report with a weird disconnect: the stock is down 37% this year, but the actual business is on fire. That gap between price and performance is exactly why this one's worth watching.

The Numbers Behind the Noise

Q1 2026 wasn't a fluke quarter for SoFi. Loan originations hit a record $12.18 billion, up 68% year over year. GAAP net income more than doubled, climbing 134% to $166.73 million, and operating income jumped 150%. Member growth ran at 35% year over year, and 43% of new products came from existing members — proof that the company's "cross-sell flywheel" strategy, five years in the making, is actually working.

So Why Is the Stock Down?

Good question. Growth stocks in fintech have been getting punished broadly this year as investors rotate toward safer bets, and SoFi hasn't been immune despite beating on nearly every metric that matters. Management's own full-year 2026 guidance calls for $4.655 billion in adjusted net revenue (about 30% growth) and $0.60 in adjusted EPS. Longer term, they're projecting adjusted EPS growth of 38% to 42% annually through 2028 — an aggressive but not unrealistic target given recent trends.

What the Valuation Says

Here's where it gets interesting for value-minded investors. SoFi trades at a forward P/E of 28, which sounds pricey until you factor in growth. Its PEG ratio (price/earnings relative to growth) sits at just 0.81 — anything under 1 is generally considered undervalued relative to expected earnings growth. Analysts have an average price target of $20.58, well above the current $16.46 share price, implying meaningful upside if the company delivers.

SoFi has also beaten earnings estimates for seven straight quarters, which builds a track record that's hard to ignore heading into Tuesday's report.

How It Stacks Up

Competitor LendingClub trades cheaper on paper, with a forward P/E of just 12. But LendingClub's revenue growth of 12.5% year over year is a fraction of SoFi's pace, which is a big part of why investors are willing to pay a premium for SoFi's story — assuming the company keeps executing.

What to Watch on July 29

The earnings call will be the real test. If SoFi's originations, member growth, and margins keep trending the way they have, the current stock discount could look like a buying opportunity in hindsight. If growth cools even slightly, the market may not be as forgiving. Either way, this is shaping up to be one of the more closely watched fintech earnings reports of the summer.