XP (NASDAQ:XP) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

XP (NASDAQ:XP) released its quarterly earnings data on Monday. The company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.03, Zacks reports. XP had a return on equity of 22.51% and a net margin of 27.40%.The business had revenue of $943.55 million during the quarter, compared to analysts’ expectations of $935.15 million. During the same period in the prior year, the firm posted $2.46 EPS. The business’s quarterly revenue was up 8.3% compared to the same quarter last year.

Here are the key takeaways from XP’s conference call:

• Client assets reached BRL 2.2 trillion, up 17% year over year, while net new money totaled BRL 28 billion and retail inflows met the company’s BRL 20 billion quarterly target.
• Second-quarter gross revenue rose 8% to BRL 5.1 billion, adjusted EBT increased 15% to BRL 1.6 billion, and ROE improved to 22.5%; management reiterated its target for double-digit revenue growth in 2026.
• Market volatility, wider credit spreads, and a sharp decline in primary debt-capital-markets activity weighed on results. Management said third-quarter DCM activity is recovering but remains below 2025 levels, while roughly 70% of fixed-income platform sales are now daily-liquidity products with lower take rates.
• XP has already distributed nearly BRL 2.5 billion in 2026 through buybacks and dividends, including BRL 1 billion in completed repurchases, and plans to cancel 11.8 million treasury shares, or about 2.3% of outstanding shares.
• The company is expanding beyond investments into banking, insurance, wealth planning, and SME services, including cards, acquiring, and collateralized credit. Management emphasized that growth will remain gradual and conservative, with a Basel ratio of 20.3% and a target range of 16%–19%.

XP Stock Performance

NASDAQ XP opened at $15.84 on Wednesday. The company has a current ratio of 6.66, a quick ratio of 6.66 and a debt-to-equity ratio of 0.02. XP has a 12-month low of $14.80 and a 12-month high of $23.13. The stock has a market capitalization of $8.51 billion, a price-to-earnings ratio of 8.29, a PEG ratio of 0.46 and a beta of 1.10. The business’s 50 day moving average is $16.24 and its two-hundred day moving average is $18.08.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Weiss Ratings raised XP from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, May 26th. UBS Group reduced their price objective on shares of XP from $28.00 to $25.00 and set a “buy” rating for the company in a research report on Wednesday, June 3rd. Finally, Zacks Research cut shares of XP from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $23.33.

Key Headlines Impacting XP

Here are the key news stories impacting XP this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations: XP reported adjusted earnings of $0.53 per share versus the $0.50 consensus estimate, while revenue of $943.55 million topped expectations of $935.15 million. Revenue increased 8.3% year over year. XP Inc. Reports Second Quarter 2026 Results
• Positive Sentiment: Client assets and inflows accelerated: Total client assets rose 12% year over year to R$1.535 trillion, while net inflows jumped 188% to R$28 billion, signaling strong retail and corporate demand. XP Inc. Posts Solid Growth and Diversification
• Positive Sentiment: Morgan Stanley maintained a Buy rating and a $26 price target, citing operational outperformance, margin expansion, and robust demand. Morgan Stanley XP Rating
• Positive Sentiment: Share cancellation supports per-share value: XP cancelled 11.8 million treasury Class A shares, or 2.3% of its shares outstanding, reducing the share count from approximately 520.3 million to 508.5 million. XP Inc. To Cancel Treasury Shares
• Positive Sentiment: Options activity was unusually bullish: Investors purchased 25,163 call options, roughly 430% above average call volume, suggesting increased speculative interest in further gains.
• Neutral Sentiment: One analysis characterized Q2 as an improvement but not a decisive turnaround, supporting a cautious Hold stance despite the earnings beat. XP Inc. Q2 Analysis
• Negative Sentiment: The annualized retail take rate declined five basis points year over year to 1.20%, indicating some pressure on monetization even as client assets and inflows expanded.

XP declared that its board has initiated a stock buyback program on Tuesday, May 19th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC grew its stake in XP by 65.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company’s stock valued at $33,000 after acquiring an additional 646 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in shares of XP by 1,783.3% during the third quarter. Caitong International Asset Management Co. Ltd now owns 2,825 shares of the company’s stock worth $53,000 after purchasing an additional 2,675 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new stake in XP in the 4th quarter valued at about $55,000. Vestcor Inc purchased a new stake in XP in the third quarter valued at approximately $64,000. Finally, Virtus Advisers LLC purchased a new stake in shares of XP during the 3rd quarter valued at $75,000. 59.15% of the stock is currently owned by institutional investors and hedge funds.

XP Company Profile

XP Inc provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients.