• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Why Pagaya Technologies (PGY) Is Up 21.3% After Hiking 2026 Outlook And ABS Issuance

    Simply Wall St·08/02/2026 12:20:41
    Listen to the news
    • Pagaya Technologies Ltd. recently reported second-quarter 2026 results showing revenue of US$387.04 million and net income of US$45.27 million, alongside higher earnings per share than a year earlier.
    • The company also raised its full-year 2026 outlook, projecting total revenue and other income between US$1.43 billion and US$1.53 billion and GAAP net income between US$155 million and US$180 million, while closing a US$900 million AAA-rated personal loan ABS deal that lifted year-to-date issuance to US$7.50 billion.
    • With this upgraded full-year guidance, we’ll now assess how Pagaya’s stronger expected profitability reshapes the existing investment narrative.

    Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource.

    Pagaya Technologies Investment Narrative Recap

    To own Pagaya, you need to believe its AI underwriting and data network can keep attracting more banks and funding partners while staying on top of regulation. The stronger Q2 2026 profitability and higher full year guidance support that thesis in the near term, but the key catalyst remains sustained partner and volume growth, and the biggest risk is still regulatory or credit setbacks that could slow onboarding or hurt model performance. This news does not remove those risks.

    The upsized US$900 million AAA-rated personal loan ABS deal is especially relevant here, because it underpins Pagaya’s raised full year revenue and net income outlook by reinforcing access to funding. Record year to date ABS issuance of US$7.50 billion helps support near term network volume guidance and may be important for how quickly Pagaya can scale new partner flows, even as competition and regulatory scrutiny remain front of mind.

    Yet against this strong ABS momentum and higher guidance, investors should still be aware that concentrated funding and partner exposure could...

    Read the full narrative on Pagaya Technologies (it's free!)

    Pagaya Technologies' narrative projects $1.9 billion revenue and $302.0 million earnings by 2029. This requires 13.6% yearly revenue growth and about a $208 million earnings increase from $94.0 million today.

    Uncover how Pagaya Technologies' forecasts yield a $26.90 fair value, a 40% upside to its current price.

    Exploring Other Perspectives

    PGY 1-Year Stock Price Chart
    PGY 1-Year Stock Price Chart

    Before this update, the most optimistic analysts were already baking in US$2.0 billion of 2029 revenue and US$435.6 million in earnings, so you should expect that views on risks like partner concentration and funding breadth might shift again as these stronger Q2 numbers and raised 2026 guidance are absorbed.

    Explore 8 other fair value estimates on Pagaya Technologies - why the stock might be worth over 7x more than the current price!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    Seeking Other Investments?

    Opportunities like this don't last. These are today's most promising picks. Check them out now:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.