- SOFI
- PYPL
- NVDA
SoFi Technologies (NASDAQ: SOFI) and PayPal Holdings (NASDAQ: PYPL) both raised their 2026 outlooks on Oct. 27, signaling renewed confidence in their growth prospects. But which stock has the better growth potential and makes the stronger case for buying the stock?
Let’s start with the company adding customers at a record pace.
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An all-in-one financial app is driving SoFi’s member growth
SoFi has been steadily building an all-in-one online financial services platform, and that strategy is starting to pay off.
Its third-quarter results showed strong growth in both its customer base and the number of products those customers use. The company added a record 1.2 million customers during the quarter, bringing its total to 17.1 million.
Customers are also using multiple products, giving the company more opportunities to generate revenue from each relationship. Its financial services business is expanding through products like SoFi Money, Invest, Relay, and its credit card offerings.
As a result, SoFi raised its 2026 outlook, increasing its adjusted net revenue forecast to about $5 billion and reaffirming its adjusted earnings-per-share (EPS) forecast of $0.61. More importantly, management also announced its 2027 outlook, targeting $0.90 in adjusted EPS, meaning not in accordance with generally accepted accounting principles (GAAP).
But the company still faces risks, as SoFi remains exposed to consumer credit conditions, loan defaults, and interest rate changes. Its ambitious strategy also requires significant investment, while competition could make customer acquisition more difficult.
Still, analysts see room for gains, with an average target price of $20.80, representing about 25% potential upside. Today, the stock trades at a forward price-to-earnings (P/E) ratio of about 19.6, which is a relatively reasonable valuation for a fintech company with solid growth ambitions. If management delivers on its earnings targets, the stock could offer plenty of gains.
Meanwhile, another fintech giant is taking a different approach to accelerate growth.
A global network and Venmo give PayPal room to grow
PayPal’s biggest advantage is its established global network of consumers and merchants. Its branded checkout service remains widely recognized, while Venmo offers another avenue for growth, especially among younger consumers. The company is also expanding its presence in buy now, pay later (BNPL), mobile payments, and merchant services.
