XP INC 2026 Q2
Earnings Overview & AI Insights

Earnings Performance

Summary of Financial Performance:
XP reported a solid Q2 2026, with client assets (AUM + AUA) reaching $2.2 trillion, up 17% year over year. Gross revenue was BRL 5.1 billion, up 8% YoY, while adjusted EBT rose 15% to BRL 1.6 billion and adjusted net income increased 5% to BRL 1.4 billion. ROE improved to 22.5%, EPS rose 9% YoY, and the capital ratio remained strong at 20.3%. Retail revenue grew 8% YoY to BRL 3.9 billion, and wholesale revenue grew 32% YoY, driven mainly by corporate banking strength.

Company Outlook & Strategy:
Management reaffirmed its target of double-digit growth in 2026, supported by stronger execution and a more diversified revenue base. The company is focused on becoming Brazil’s investment leader by 2033 and positioning itself as a “full financial CFO” for clients through more complete, personalized offerings. XP is expanding wealth planning, offshore investments, ETFs, managed portfolios, credit, and SME solutions, while maintaining disciplined capital allocation and a conservative risk approach.

Key Industry Trends:
The quarter was affected by geopolitical tensions, market volatility, wider credit spreads, and weaker primary fixed income issuance, especially in issuer services. Management noted signs of market normalization late in the quarter, including a gradual recovery in the fixed income pipeline. The company also highlighted that periods of higher volatility can support volumes and revenues in retail trading and institutional desks.

Operational Highlights:
XP continued product launches across both consumer and business segments, including new offerings for SMEs such as POS and credit card solutions. The firm is expanding its adviser-driven wealth planning model, with more than 26% of client assets already under fee-based structures. NPS improved to 66, reflecting recovery from prior one-off disruptions. The company also executed BRL 1 billion in buybacks, distributed about BRL 500 million in dividends, and announced cancellation of 11.8 million shares, equal to 2.3% of outstanding shares.

Challenges & Risks:
Key risks included ongoing geopolitical uncertainty, market volatility, lower risk appetite, and fewer fixed income primary offerings, which weighed on issuer services. Management also mentioned that revenue and expenses may be influenced by normal second-half seasonality, including bonus provisions and the XP Expert event. Execution risk remains tied to market dynamics and the pace of normalization in capital markets.

Key Analyst Questions & Responses:
Analysts asked about the impact of volatility on revenues, especially ahead of the election period, and whether corporate banking could sustain its strong performance. Management said higher volatility should benefit retail trading and institutional desks, and expects stronger second-half revenues in those areas. On corporate banking, XP said the business has been scaled conservatively since 2021, has a high-quality credit portfolio, and current performance should be viewed as a new normal, with Q3 also expected to remain strong. A question on the wholesale banking opportunity and lending expansion was raised, along with whether payout ratios might change as the balance sheet is used more in future; these topics were raised but not fully answered in the provided Q&A segment.