XP (NASDAQ:XP) Issues Quarterly Earnings Results

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

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 Down 0.8%

XP opened at $15.70 on Tuesday. The business has a 50 day moving average price of $16.23 and a two-hundred day moving average price of $18.11. The company has a quick ratio of 6.66, a current ratio of 6.66 and a debt-to-equity ratio of 0.02. The company has a market cap of $8.44 billion, a PE ratio of 8.67, a P/E/G ratio of 0.46 and a beta of 1.10. XP has a 52 week low of $14.80 and a 52 week high of $23.13.

More XP News

Here are the key news stories impacting XP this week:

• Positive Sentiment: XP exceeded quarterly expectations. Second-quarter earnings were approximately $0.52–$0.53 per share, above consensus estimates of $0.50–$0.51, while revenue reached $943.6 million versus the $935.2 million estimate. Revenue increased 8.3% year over year. XP Inc. Tops Q2 Earnings Estimates
• Positive Sentiment: Client assets and inflows showed strong momentum. Total client assets rose 12% year over year to 1.535 trillion Brazilian reais, while net inflows increased to 28 billion reais from 10 billion reais a year earlier. The company also emphasized continued growth and greater business diversification in Brazil. XP Inc. Reports Second Quarter 2026 Results
• Positive Sentiment: The share count was reduced. XP canceled 11.8 million treasury Class A shares, equivalent to 2.3% of total shares outstanding. The smaller share base can modestly improve per-share metrics and signals capital-allocation support. XP Inc. To Cancel Treasury Shares
• Neutral Sentiment: Analyst interpretation is constructive but restrained. A Seeking Alpha analysis upgraded XP but maintained a “hold for now” stance, characterizing the quarter as better but not strong enough to justify a more bullish view. Management’s earnings call and presentation provided additional detail on the quarter’s operating performance and strategy. XP Inc. Q2 Better But Not Way Better
• Negative Sentiment: Revenue monetization remained under pressure. The annualized retail take rate declined to 1.20% from 1.25% a year earlier, suggesting that XP is attracting assets and clients while generating slightly less revenue per asset. That pressure may be offsetting the earnings beat and strong inflow growth. XP Inc. Q2 2026 Earnings Call Transcript

XP declared that its board has approved a share repurchase plan on Tuesday, May 19th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Analyst Upgrades and Downgrades

XP has been the topic of several research reports. Weiss Ratings raised XP from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Zacks Research cut shares of XP from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Finally, UBS Group dropped their price target on shares of XP from $28.00 to $25.00 and set a “buy” rating for the company in a research note on Wednesday, June 3rd. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, XP has a consensus rating of “Moderate Buy” and an average price target of $23.33.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in XP. EverSource Wealth Advisors LLC raised its position in XP by 65.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company’s stock worth $33,000 after acquiring an additional 646 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its stake in shares of XP by 1,783.3% during the 3rd 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 period. Aster Capital Management DIFC Ltd purchased a new position in XP in the fourth quarter valued at about $55,000. Vestcor Inc acquired a new position in XP during the third quarter worth $64,000. Finally, Virtus Advisers LLC acquired a new position in shares of XP during the 3rd quarter worth $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.