Is SoFi (SOFI) Still a Buy in 2026 After an 85% Rally?

The question of whether SoFi Technologies (SOFI) remains a compelling investment in 2026 hinges on a nuanced evaluation of its valuation, growth trajectory, and strategic forays into the crypto sector. After an 85% rally in 2025, the stock's current price reflects both optimism about its transformation and skepticism about its ability to sustain momentum. This analysis examines SoFi's financial health, long-term growth potential, and crypto-driven innovation to determine whether the stock still offers value.

Valuation: A High P/E, But Improved Fundamentals

SoFi's price-to-earnings (P/E) ratio of 51.9x suggests that investors are paying a premium for its earnings, a common feature for high-growth stocks. However, this metric must be contextualized against the company's improved financial health. Over the past five years, SoFi's debt-to-equity ratio has plummeted from 166.8% to 30.9%, reflecting a disciplined approach to deleveraging. Its balance sheet now boasts $3.27 billion in cash and total assets of $45.29 billion, while liabilities stand at $36.51 billion. This structural strength provides a buffer against economic volatility and supports reinvestment in growth initiatives.

Analysts remain divided on SoFi's near-term prospects. The median 2026 price target of $27.25, with a wide range from $12.00 to $38.00, underscores the uncertainty. A "Hold" consensus from 47 analysts suggests that while the company's fundamentals are improving, the market is cautious about overpaying for its current trajectory. For value investors, the key question is whether SoFi's earnings growth can justify its elevated P/E. With 2025 net income at $498.67 million and a 28.15% year-over-year revenue increase in Q3 2025, the company is demonstrating resilience. However, sustaining this pace will require execution on its strategic priorities.

Growth Potential: A Foundation for Expansion

SoFi's revenue growth from 2020 to 2025 has been robust, with a 65.2% increase in 2023 and a 29.33% jump in 2024. By September 2025, the company had already generated $1.268 billion in quarterly revenue, signaling momentum. Net income, though volatile, has shown a dramatic turnaround: the twelve-month net income as of September 2025 reached $640 million, a 289.59% year-over-year increase. These figures highlight SoFi's transition from a loss-making fintech to a profitable entity, a critical milestone for long-term credibility.

The company's growth is underpinned by its expanding member base and product diversification. With over 12.6 million members, SoFi is leveraging scale to cross-sell services, from student loans to crypto trading. Its Q4 2025 earnings report, scheduled for January 30, 2026, will provide further clarity on whether this growth is translating into consistent profitability. For now, the balance sheet's strength-particularly its low leverage-positions SoFi to invest in innovation without overburdening its capital structure.

Crypto Expansion: A Strategic Differentiator

SoFi's foray into crypto represents its most transformative opportunity. As the first nationally chartered bank to offer crypto trading, SoFi has positioned itself at the intersection of traditional finance and blockchain innovation. in 2025 allows members to trade Bitcoin, Ethereum, and Solana, catering to both retail and institutional demand. This service is complemented by SoFiUSD, a fully reserved stablecoin designed to facilitate faster, cheaper transactions and cross-border remittances.

The strategic implications are profound. By tokenizing its own loans and offering staking/borrowing against crypto assets, SoFi is creating new revenue streams and expanding its addressable market. CEO Anthony Noto has emphasized that blockchain technology could "reshape finance", and SoFi's regulatory credibility-unlike many crypto-native firms-gives it a unique edge. For instance, SoFiUSD's infrastructure is being white-labeled for other banks and fintechs, generating recurring revenue and solidifying its role as a crypto infrastructure provider.

Risks and Considerations

While SoFi's crypto initiatives are promising, they are not without risks. Regulatory scrutiny of stablecoins and crypto platforms remains intense, and any missteps could undermine trust. Additionally, the crypto market's volatility means that demand for SoFi's services could fluctuate sharply. Investors must also weigh the company's high P/E against its ability to maintain earnings growth. If SoFi's revenue or net income slows, the stock could face downward pressure.

Conclusion: A Buy, But with Caution

SoFi's combination of improved financial health, robust growth, and crypto-driven innovation makes it an intriguing candidate for long-term investors. The company's low leverage, expanding revenue streams, and leadership in crypto suggest a strong foundation for future value creation. However, the elevated P/E ratio and mixed analyst sentiment necessitate a cautious approach. For those willing to tolerate short-term volatility, SoFi's strategic bets-particularly in blockchain-could pay off handsomely. That said, investors should monitor Q4 2025 results and regulatory developments in the crypto space before committing. In a market where fintechs are increasingly integrating digital assets, SoFi's proactive stance may yet justify its premium valuation.