XP Inc. (XP) AI Stock Analysis

Founded in 2001 and headquartered in São Paulo, Brazil, XP Inc. operates as a leading financial services firm serving both retail and institutional clients. The company provides securities brokerage, private pension plans, commercial and investment banking products, and financial advisory services. Through its XP Platform, XP offers an open-architecture distribution model granting users access to equities, fixed income securities, mutual and hedge funds, private equity, structured products, credit cards, life insurance, and real estate investment funds. In addition, XP supports client financial education through its Xpeed portal, providing classes and seminars on investment techniques and strategies.

XP expanded revenue from $12.97B in FY2021 to $19.87B in FY2024 before revenue fell 8.2% to $18.24B in FY2025. Over the five-year period from FY2020 to FY2025, revenue grew at a compound annual growth rate of 16.2%. Net income stood at $3.73B in FY2021, rose to $5.18B in FY2024, and reached $5.07B in FY2025 with a net margin of 27.8%. Operating margin was 32.4% in FY2025, compared to 32.0% in FY2021. For the latest quarter ended June 30, 2026, quarterly revenue growth was 10.6% year-over-year, while quarterly earnings grew 8.6% year-over-year.

As of June 30, 2026, XP held $7.97B in cash and short-term investments against total debt of $92.75B, leaving net debt at $84.79B. Shareholders' equity was $24.79B alongside total assets of $407.40B, resulting in a debt-to-equity ratio of 3.74 and a current ratio of 0.50. In FY2025, operating cash flow reached $12.04B and free cash flow was $11.84B. Capital allocation during FY2025 included $209.3M in capital expenditures, $1.90B in share buybacks, and $494.5M in dividends paid.

XP trades at a trailing price-to-earnings ratio of 15.3x and an EV/EBITDA of 15.6x, both higher than the median of its US-listed Financial Services peers at 12.1x and 11.7x, respectively. However, its forward P/E of 8.5x and price-to-sales ratio of 0.8x sit below the peer group medians of 10.8x and 3.2x. Over the past year, XP shares gained 82.2%, outperforming the S&P 500 benchmark return of 16.8%. Over a five-year horizon, XP shares declined 9.5%, trailing the S&P 500 return of 83.0%.

XP pays a semiannual dividend with an annualized forward rate of $0.20 per share, representing a dividend yield of 0.68%. The payout ratio is 4.7%, and the company has paid dividends for 4 consecutive years. XP's most recent ex-dividend date occurred on June 10, 2026.

Wall Street coverage consists of 8 Strong Buy, 4 Buy, and 1 Hold recommendations, with no Sell or Strong Sell ratings. The average analyst price target is $26.19, which is 10.4% below the last close of $29.23. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $20.09B and EPS of $10.92, representing 11.3% EPS growth. XP beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 16, 2026.

This page is an AI-written research summary of XP Inc. (XP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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