SoFi Technologies' Stock Reacts to Tax Change, Q2 Earnings Impact

SoFi Technologies reported record second-quarter 2026 revenue of $1.21 billion, up 43% year-over-year and above Street expectations, with adjusted EPS of $0.12 versus the $0.11 consensus estimate. Shares jumped roughly 8% on the news, marking the stock's best single-day move of 2026, as investors focused on the underlying growth story rather than a one-time tax headwind.

That headwind is the tax change referenced in the headline: management raised its 2026 effective tax rate assumption to about 22%, roughly 700 basis points above its original mid-teens plan, which shaved about $0.05 off adjusted EPS guidance. At the original lower tax rate, adjusted EPS guidance would have been closer to $0.65 instead of the roughly $0.60 now guided for the full year.

Despite the beat and a raised full-year revenue outlook, now $4.75 billion to $4.85 billion (32% to 35% growth), several analysts trimmed price targets even while keeping constructive ratings. Morgan Stanley cut its target to $15 from $16 while maintaining an Underweight rating, citing that growth is becoming more capital intensive even after a 7% revenue beat. Needham lowered its target to $24 from $25 while maintaining a Buy rating. Wall Street's average price target on SOFI sits near $19.58, with estimates ranging from $12 to $30, reflecting a wide spread of views on the stock's growth-versus-profitability tradeoff.

The tension between a genuine revenue and EPS beat, a tax-driven guidance trim, and mixed analyst reactions is the bigger story some market commentary points to: SoFi's core lending and financial-services businesses are scaling quickly, but the stock's valuation debate now hinges as much on tax-rate assumptions and capital intensity as on top-line growth.

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