SOFI vs. PayPal (PYPL): Which Fintech Stock Will Deliver Explosive Returns Before Q3 Earnings?

Fintech Titans Collide as Earnings Season Heats Up

The Digital Finance Showdown

SOFI and PayPal aren't just competing for user wallets—they're battling for investor attention ahead of crucial Q3 earnings. While traditional analysts obsess over P/E ratios, crypto-savvy investors see something different: two companies racing to capture the digital asset revolution.

SOFI's Crypto Gambit Pays Off

SOFI's integrated crypto trading platform keeps attracting millennial and Gen Z investors who want everything in one app. They're not just getting student loans refinanced—they're buying Bitcoin between payments. The platform's seamless crypto integration demonstrates how traditional fintech boundaries are collapsing.

PayPal's Blockchain Bet

Meanwhile, PayPal's pushing their stablecoin and crypto services harder than ever. PYPL understands the game has changed—you either embrace digital assets or get left behind. Their massive user base gives them distribution power that pure-play crypto companies would kill for.

The Real Question

Forget which stock has better traditional metrics. The real question is: which company better understands that the future of finance runs on blockchain rails? While Wall Street analysts debate revenue multiples, smart money's betting on whichever platform can best bridge traditional finance with the crypto economy.

Because let's be honest—the 'fin' in fintech is starting to look a lot more like 'crypto' every quarter. And the company that figures that out first? That's where the real upside lives.

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With Q3 results just around the corner, investors are asking which fintech stock has more room to rise. Using TipRanks’ Stock Comparison Tool, we look at how Wall Street analysts view SoFi and PayPal and which one they believe could deliver higher upside potential in the NEAR term. 

SoFi Technologies Stock (NASDAQ:SOFI)

SoFi stock has rallied more than 72% year-to-date, fueled by strong financial results and a fast-growing customer base. The company continues to expand its member network and deepen customer engagement through steady growth in its product offerings. The company added 850,000 new members in Q2 2025, bringing total membership to 11.7 million, up 34% year-over-year. However, Wall Street analysts remain cautious on SOFI stock due to intense competition and steep valuation.

Looking ahead, SOFI is scheduled to announce its third-quarter earnings on October 28. Wall Street expects SoFi to report earnings per share (EPS) of $0.08 for Q3 2025, reflecting a 60% year-over-year growth. Revenue is expected to grow 27% year-over-year to $887.24 million.

Ahead of the Q3 results, Mizuho analyst Dan Dolev raised his price target on SoFi to $31 from $26 while maintaining a Buy rating. Dolev noted that bank processors, consumer lenders, and exchanges stand to benefit the most from potential interest rate cuts. He added that SoFi’s strong rate-sensitive outlook supports a higher valuation compared to peers. 

PayPal Holdings Stock (NASDAQ:PYPL)

PayPal stock has climbed about 14% in the past six months, supported by solid earnings and new growth plans. The company recently gained attention after launching PayPal Ads Manager, a tool to help small businesses turn online traffic into sales. Strong Q2 results and a solid outlook also boosted sentiment. However, despite improving margins and renewed growth efforts, Wall Street analysts remain cautious on PYPL due to valuation concerns and rising competition in digital payments.

Looking ahead, PayPal is expected to report its Q3 2025 earnings on November 3. Wall Street expects PayPal to report earnings of $1.21 per share for Q3, up 0.8% from the year-ago quarter. Meanwhile, analysts project Q3 revenues at $8.23 billion, up about 5% year-over-year.

Ahead of the Q3 print, Goldman Sachs analyst Will Nance downgraded PayPal to Sell from Neutral with a $70 price target. The firm expects PayPal to face several margin pressures in 2026, including higher interest costs and slower growth in its credit products. Goldman also sees limited near-term recovery in PayPal’s branded checkout business due to weak trends in Germany, tariff issues in the U.S., and rising competition from other digital wallets.

SOFI or PYPL: Which Stock Offers Higher Upside, According to Analysts? 

Using TipRanks’ Stock Comparison Tool, we compared SoFi and PayPal to see which stock analysts prefer. SoFi is rated Hold with a price target of $21.89, implying roughly 24% downside. In contrast, PayPal holds a Moderate Buy rating with an average price target of $82.06, suggesting a potential 17% upside from its current price.

Conclusion

While both SoFi and PayPal are key players in the fintech space, PayPal appears better positioned to deliver higher upside based on current analyst forecasts. Meanwhile, SoFi’s rapid growth and expanding user base highlight its long-term promise, but analysts remain cautious due to its high valuation and competitive pressures.