SoFi Technologies (NASDAQ: SOFI) has had a difficult 2026, with shares falling 34% year to date even as broader markets pushed higher in a sustained bull run.
However, investors received a welcome boost ahead of the company’s upcoming earnings report, thanks to strong quarterly results from JPMorgan Chase and Goldman Sachs.
Bank stocks tend to move in correlation with one another, and positive signals from Wall Street’s biggest institutions often ripple through to smaller digital banking players like SoFi.
The standout growth driver for both major banks last quarter was investment banking, with Goldman Sachs reporting 55% growth in the segment and JPMorgan Chase posting a 45% increase.
Investment banking encompasses activities such as initial public offerings, mergers and acquisitions, and asset management, all of which reflect broader economic confidence and business activity.
Goldman Sachs also reported that mergers and acquisitions activity surged 90% year over year, with the bank attributing part of that momentum to the artificial intelligence build-out driving growth across multiple sectors.
A notable event during the quarter was the Space Exploration Technologies SpaceX IPO, described as the largest ever, which contributed meaningfully to capital markets activity across the industry.
SoFi was one of the platforms that provided retail investor access to the SpaceX IPO, positioning the company to benefit directly from the record-breaking capital markets event.
Lending activity also proved robust during the quarter, with JPMorgan Chase reporting average loans up 10% year over year, a particularly relevant metric for SoFi given its core business focus.
Lending accounted for more than half of SoFi’s total revenue in the first quarter of 2026, rising 55% year over year, with total originations climbing 68% across the period.
Home loans were a specific bright spot for SoFi, surging 137% year over year, while student loans posted an impressive 119% increase over the same period.
SoFi has evolved well beyond its lending roots into a full-service digital banking app, though its original business lines continue to drive the majority of revenue growth.
The broader strength seen across all banking segments in the second quarter suggests conditions remain favorable heading into SoFi’s own Q2 earnings report, scheduled for July 29.
While economic warning signs have emerged in certain corners of the market, overall conditions remain strong, supporting continued lending demand and investment activity throughout the sector.
