SoFi Technologies (NASDAQ: SOFI) Stock Rises on Strong Q3 Results and Raised Revenue Guidance
Key points
- SoFi Technologies (NASDAQ: SOFI) received a "Buy" rating from Citigroup (NYSE: C) following strong third-quarter results.
- The company raised its 2026 adjusted net revenue guidance to $5.04 billion, leading to a significant stock price increase.
- SoFi's management expects to fund future lending growth internally and aims for a fourfold increase in financial services and lending products.
SoFi Technologies (NASDAQ: SOFI) is an online financial services company that offers lending and other banking products. Citigroup (NYSE: C) maintains its Buy rating on the stock and describes SoFi’s third-quarter results as strong. Shares trade at $16.40 when the update is posted.
SoFi shares rise $1.94, or 13.42%, as the company raises its 2026 adjusted net revenue guidance to $5.04 billion during its Oct. 27 earnings call. Adjusted net revenue is a measure of sales that excludes certain items, giving investors another way to track the company’s operating performance.
The company reports growth despite an unexpected interest rate hike. Management credits its mix of financial products and growing range of services. Demand for lending products also supports the higher revenue outlook, while CEO Anthony Noto says SoFi’s growth helps it handle economic uncertainty, as highlighted by Bloomberg Technology.
Management expects quarterly profits and available balance sheet capacity to fund planned lending growth in 2027 without issuing new shares or taking on outside debt. Issuing shares can reduce existing investors’ ownership percentage. SoFi also targets a fourfold increase in its total financial services and lending products, as highlighted by The Motley Fool.
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