Brazil's XP Inc Q1 revenue rises, EPS up

XP

18/05/2026 21:28

Overview

Brazil financial platform's Q1 gross revenue rose 8% yr/yr, driven by equities and retail growth

Adjusted diluted EPS for Q1 increased 9% yr/yr

Company announced new R$1 bln share buyback and R$500 mln dividend

Outlook

XP Inc. expects to reach BIS ratio target range of 16%-19% by year-end through capital distributions

Result Drivers

EQUITIES AND RETAIL - Year-over-year gross revenue growth was driven by equities, retail new verticals, and other retail, with new ventures and float expanding rapidly

WHOLESALE BANK GROWTH - Wholesale bank revenue rose 26% YoY, led by robust corporate activity and increased demand for derivatives, FX, and trading solutions

SG&A EXPENSES - SG&A expenses increased 14% YoY, which put pressure on margins

Company press release: ID:nBw2FcZ9Fa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
BRL 2.49
Q1 Gross Margin
67.20%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

Wall Street's median 12-month price target for XP Inc is $25.00, about 43.1% above its May 15 closing price of $17.47

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)