Inter & Co earnings spark fresh look at the stock

Inter & Co (INTR) is drawing attention after reporting first quarter 2026 results, with higher net interest income, net income and earnings per share compared with the same period a year earlier.

The earnings release comes after a sharp pullback in the stock, with the share price down about 31% over the past month and roughly 33% over the past quarter. The 3 year total shareholder return is still well ahead of the 1 year total shareholder return, which suggests longer term holders remain in profit even as recent momentum has faded.

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With the stock down sharply in recent months and trading at a discount to both some valuation estimates and analyst targets, the key question now is whether this is a genuine opportunity or if the market already reflects future growth.

Most Popular Narrative: 82.4% Undervalued

According to the most followed narrative on Simply Wall St, Inter & Co's fair value sits far above the last close of $5.85, which puts the current pullback in a very different light.

In 2025, Inter delivered one of the most consistent trajectories among Brazilian digital banks: record net income of R$1.312 billion, ROE of 15.1% in 4Q25, a credit portfolio growing 3.6 times the market, and an efficiency ratio consistently declining from 48.4% to 45.5%.

The 60-30-30 plan, with targets of 60 million clients, 30% ROE, 30% efficiency, a R$100 billion loan portfolio, and R$5 billion in net income, defines the strategic horizon. This thesis argues that Inter is undergoing a real transition from an investment platform to a platform of monetization and operational leverage.

The fair value of $33.30 in this thesis leans heavily on faster revenue growth than expenses, higher margins, and a richer mix of monetized customers. Curious which assumptions really move that valuation and how they tie back to the 60/30/30 plan.

Result: Fair Value of $33.30 (UNDERVALUED)

However, this thesis could easily be tested if credit quality weakens or if expense growth outpaces revenue, which would pressure margins and ROE targets.

Next Steps

The mix of optimism and caution around Inter & Co is hard to ignore, so it makes sense to check the underlying data yourself and move quickly to form your own view by weighing up the 4 key rewards and 2 important warning signs

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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.