Market reaction and valuation
Shares of SoFi Technologies (NASDAQ:SOFI) slid roughly 4% to $23.08 following the company’s quarterly results, a drop that followed earlier pre-market gains. InvestingPro figures cited in market commentary place SoFi’s price-to-earnings ratio at 42.61, a level the platform characterizes as slightly overvalued.
Analyst view
Mizuho reiterated its Outperform rating and left its price target unchanged at $38.00, advising investors to consider adding to positions on the recent weakness. In its assessment, the research team labeled the quarter "outstanding" and highlighted both the company’s positive guidance for 2026 and the broader medium-term outlook as reasons for continued optimism.
Chime relationship and guidance
A focal point of investor concern was SoFi’s loss of Chime as a client. Mizuho described those concerns as "overblown," noting that SoFi’s fourth-quarter guidance had already incorporated the impact of Chime’s departure. According to the firm, the development was therefore expected rather than sudden to the market.
The research note also indicated that revenue attributed to Chime in the fourth quarter was consistent with contractual terms and matched levels recorded across the prior six quarters, suggesting no atypical revenue spike tied to that relationship.
Forward growth expectations
Mizuho projects that SoFi’s Tech Platform revenue will still expand by approximately 20% in 2026 when normalizing for the Chime transition. Separately, SoFi’s own guidance calls for 35% year-over-year growth in the first quarter of 2026, even though the company expects no revenue from Chime during that period.
Quarterly results
SoFi reported fourth-quarter 2025 results that exceeded expectations. The company posted earnings per share of $0.13 versus the consensus estimate of $0.11, representing an 18.18% surprise. Revenue came in at $1.03 billion, ahead of the forecasted $973.43 million, a 5.81% surprise. These beats were noted as signs of the company’s current financial performance.
Performance metrics
Over the last twelve months, SoFi’s revenue rose 30.62%, and the company carries a market capitalization of $29.11 billion. InvestingPro data referenced in market commentary shows a 48.18% total return over the past year for the stock, which has traded between $8.60 and $32.73 on a 52-week basis.
Additional resources
For market participants seeking a deeper dive, the cited InvestingPro Pro Research Report includes further analysis of SoFi’s financial condition and additional ProTips.
Key points
- Mizuho kept an Outperform rating and a $38 price target on SoFi, urging investors to buy on recent weakness.
- SoFi beat Q4 2025 estimates on both EPS ($0.13 vs $0.11) and revenue ($1.03B vs $973.43M).
- Analysts note that Chime-related revenue in Q4 matched contractual expectations and that guidance already reflected Chime’s exit.
Risks and uncertainties
- Ongoing market sensitivity to client changes - the fintech and payments sectors may be affected if investor concerns about client relationships persist.
- Valuation considerations - a P/E of 42.61 leads some market observers to view SoFi as slightly overvalued, which could influence investor appetite in broader equity markets.