LendingClub (LC) Receives Strong Buy Upgrade: Key Information You Need to Know
LendingClub's Upgrade: LendingClub has received a Zacks Rank #1 (Strong Buy) upgrade, indicating a positive outlook due to rising earnings estimates, which are crucial for stock price movements.
Zacks Rating System: The Zacks rating system, which evaluates stocks based on earnings estimate revisions, has a strong track record, with Zacks Rank #1 stocks averaging a +25% annual return since 1988.
Earnings Growth: Analysts have increased their earnings estimates for LendingClub by 71.6% over the past three months, reflecting an improvement in the company's business fundamentals.
Market Position: LendingClub's strong earnings growth positions it favorably in the market, suggesting potential for stock price increases as it ranks in the top 5% of Zacks-covered stocks based on estimate revisions.
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LendingClub Issues Soft Q1 2026 Earnings Guidance Amid Strong Q4 Results
- Soft Earnings Guidance: LendingClub projects Q1 2026 GAAP EPS between $0.34 and $0.39, trailing the $0.30 average analyst estimate, leading to an 8.3% drop in after-hours trading, indicating market concerns over future profitability.
- Strong Q4 Performance: Q4 EPS of $0.35 exceeded Wall Street's $0.33 expectation but fell from $0.37 in the prior quarter, reflecting challenges in sustaining profit growth, while Q4 net revenue reached $266.5 million, slightly above the $262 million forecast.
- Stable Loan Originations: Q4 loan originations held steady at $2.6 billion, showing a 40% year-over-year increase, indicating robust market demand despite the pressure from the earnings guidance, which underscores the company's operational resilience.
- Positive Future Outlook: CEO Scott Sanborn emphasized entering 2026 from a position of strength, with plans to leverage product innovations and marketing investments to enhance earnings power, particularly through new opportunities in home improvement financing, reflecting confidence in future growth.

LendingClub Reports Strong Q4 Earnings but Shares Drop 13%
- Strong Performance: LendingClub reported Q4 2025 diluted EPS of $0.35 and total revenue of nearly $267 million, driven by approximately $2.6 billion in loan originations, all significantly higher year-over-year and exceeding market expectations.
- Optimistic Guidance: The company guided for $2.6 billion in loan originations and diluted EPS of $0.365 for Q1 2026, with full-year guidance of $12.1 billion in originations and EPS of $1.725, reflecting 48% and 26% year-over-year growth, indicating robust growth potential.
- Accounting Change Impact: LendingClub plans to mark all loans as held-for-sale (HFS), shifting from previously accounting for some loans as held-for-investment (HFI), which may lead investors to misinterpret future guidance, impacting stock performance.
- Cautious Market Reaction: Despite strong earnings, shares dropped nearly 13%, trading at about 10 times forward earnings, suggesting that the market needs time to digest the new accounting policy, presenting a potential entry point for investors.






