Inter & Co (NasdaqGS:INTR) opened Q1 2026 with total revenue of R$1.7b and basic EPS of R$0.89, setting the tone against a trailing twelve month backdrop where revenue stood at R$6.3b and EPS reached R$3.22. Over recent periods, revenue has moved from R$4.6b to R$6.3b on a trailing basis while EPS has shifted from R$2.08 to R$3.22, giving a sense of how the top line and per share earnings have scaled together. For investors, the combination of higher trailing net income, expanding revenue and a wider net margin highlights a results season where profitability is firmly in focus.

See our full analysis for Inter & Co.

With the latest numbers on the table, the next step is to see how this earnings profile lines up against the broader performance story and the credit risk considerations that many investors already have in mind.

Loan book growth comes with 8.8% NPL ratio

• Total loans on a trailing basis rose from R$35.6b in Q4 2024 to R$48.3b in Q4 2025, while non performing loans moved from R$3.45b to R$4.65b, leaving the non performing loan ratio at 8.8% and an allowance coverage of 65% against bad loans.
• Critics highlight in the bearish narrative that rapid growth in products like private payroll and unsecured credit could pressure asset quality, and the current 8.8% non performing loan ratio together with 65% coverage gives some backing to that worry, although bears are also assuming loan growth of 25 to 30% a year, which is a much faster pace than the progression from R$35.6b to R$48.3b over the last reported trailing periods.
  • The bearish view focuses on the risk that higher exposure to underbanked and lower income borrowers could lead to rising provision expenses, and the gap between non performing loans of R$4.65b and a 65% allowance is one of the concrete figures they point to.
  • At the same time, trailing net income of R$1.42b and a 22.5% net margin over the last twelve months show that profitability has so far absorbed these credit costs, which runs against the idea that credit risk has already overwhelmed the earnings story.

On this mix of growing loans and elevated non performing levels, skeptics argue the credit cycle could still have more impact on profitability, so it is worth reading the full bear case before drawing conclusions about how much risk is priced in 🐻 Inter & Co Bear Case.

Margins and EPS support the bullish growth story

• On a trailing twelve month basis, EPS reached R$3.22 and net income excluding extra items came in at R$1.42b, with net margin at 22.5% compared with 20.5% a year earlier, while quarterly EPS in the last five reported periods moved from R$0.63 in Q4 2024 to R$0.89 in Q1 2026.
• Bulls argue that stronger engagement in digital products and higher quality recurring earnings can keep margins attractive, and the move in trailing net margin from 20.5% to 22.5% along with net income rising from R$907.1m in Q4 2024 to R$1.42b over the latest twelve months gives some support to that, though bullish expectations of revenue growing 42.1% a year are significantly higher than the step up in revenue from R$4.60b to R$6.32b reported so far.
  • The bullish narrative leans on the idea of industry leading efficiency, and the higher trailing net margin is consistent with that claim, but it does not yet confirm the more aggressive path to R$3.5b of earnings by around 2029 that bulls are using in their scenario.
  • Forecasts calling for earnings growth of about 23.2% a year sit below the very fast 69.4% multi year earnings compound rate cited in the analysis, so investors may want to separate the backward looking strength from the more moderate forward assumptions that underpin bullish price targets.

If you want to see how bullish investors connect these margin and EPS figures to long term growth potential, it is worth reviewing the detailed bull case narrative 🐂 Inter & Co Bull Case.

Valuation signals split between P/E and DCF fair value

• With the share price at US$6.70, the stock sits about 41.2% below the stated DCF fair value of US$11.40, while the trailing P/E of 10.3x is slightly below the US Banks average of 11.5x but above the peer group at 9.5x, and analysts have a separate price target of US$10.46.
• What stands out for the consensus narrative is the tension between a DCF fair value that is higher than the current price and a P/E that is only modestly cheaper than the wider industry, and the figures of US$6.70 versus US$11.40 on the DCF side and 10.3x versus 11.5x and 9.5x on the multiples side capture why some investors see valuation room linked to growth forecasts of 36.9% annual revenue and 23.2% annual earnings, while others focus on credit metrics like the 8.8% non performing loan ratio as a reason to compare the stock more closely with peers.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Inter & Co on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play, does the overall picture feel balanced enough for your comfort level or slightly off center? Take a closer look at the numbers, weigh the credit and growth narratives for yourself, and then check the 3 key rewards and 2 important warning signs 3 key rewards and 2 important warning signs.

See What Else Is Out There

Inter & Co pairs solid profitability with an 8.8% non performing loan ratio and 65% allowance coverage, which keeps credit risk firmly on the radar for many investors.

If that level of credit risk feels a bit too punchy for your comfort, it is worth checking companies screened for stronger balance sheets and more conservative credit profiles through the solid balance sheet and fundamentals stocks screener (44 results).

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.