XP earnings event and why it matters for investors

XP (XP) just released second quarter 2026 results, reporting revenue of R$4,849.46 million and net income of R$1,391.76 million, compared with the same period a year earlier.

XP's latest earnings release comes after a softer run for the stock, with the share price at US$15.70 and a 30 day share price return that is down 5.82%, while the 5 year total shareholder return has declined 60.73%. This suggests that recent profit figures have yet to shift longer term sentiment in a clear way.

If XP's results have you reassessing the financial sector, this can be a good moment to broaden your watchlist and check out 21 top founder-led companies

Bulls see XP’s growing revenue and earnings as a base for a re‑rating. Bears point to the weak multi year share performance. Which side does the current valuation and recent price slide support?

Most Popular Narrative: 32.2% Undervalued

XP's most followed narrative puts fair value at $23.17 compared with the latest close at $15.70, which frames the recent price weakness in a very different light.

XP's continued diversification of its product suite, including early-stage growth in insurance, retirement, cards, FX, global investments, and the newly launched consortium business, enables deeper client cross-sell and higher revenue per customer, pointing to meaningful top-line expansion and improved earnings resiliency. Investment in scalable, technology-driven platforms and efficiency enhancements has produced steady improvements in operational leverage and expanding net margins. As XP grows, further margin gains are likely due to disciplined cost structures and self-reinforcing profitability trends.

Want to understand why this narrative points to a higher fair value for XP? The story hinges on future revenue growth, margins, and how much investors are willing to pay for those earnings. The key assumptions behind that fair value are all laid out in one place.

Result: Fair Value of $23.17 (UNDERVALUED)

However, XP’s story can change quickly if competition intensifies and fee pressure or higher operating costs squeeze margins more than analysts currently expect.

Next Steps

If the mix of optimism and caution around XP leaves you undecided, this is the moment to review the numbers yourself and move quickly. To see which potential upsides the market is already watching, take a closer look at XP's 5 key rewards

Looking for more XP investment ideas beyond this earnings story?

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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.