XP’s resilient Brazilian wealth platform, 7.40x forward P/E, and powerful capital returns offer substantial upside if rates normalize and client monetization improves.
Overview
XP Inc. is a technology-driven Brazilian financial-services platform that disrupts traditional banks by offering more than 800 investment products through an open architecture and a network of over 18,400 independent and connected advisors. Its revenue mix spans brokerage, asset-management and administration fees, securities placement, retirement plans, cards, net interest income, and wholesale banking. More than 95% of consolidated net revenue comes from Brazil, making the company highly exposed to domestic rates, inflation, currency, and regulation. **The operating platform remains resilient:** 2Q26 net revenue rose 9% year over year to R$4,884 million, EBT increased 15% to R$1,565 million, and adjusted net income rose 5% to R$1,384 million. Management reaffirmed double-digit 2026 revenue growth and returned approximately R$1.0 billion through buybacks plus R$500 million of dividends in the first half. **Valuation is undemanding**, at 7.40x forward P/E versus a historical peak above 24x. Near-term catalysts include Brazilian rate cuts, a recovery in equity and fund activity, fee-based advisory conversion, continued buybacks, and possible US banking expansion, although technical momentum remains weak and competitive, credit, and regulatory risks persist.