Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.

XP (XP) is back in focus after its second quarter 2026 earnings release. The company reported year on year increases in revenue, net income and diluted earnings per share, alongside recent share repurchase activity.

See our latest analysis for XP.

XP's latest earnings and completed buybacks come as the stock trades at $15.99, with the share price down over the past quarter but the 1 year total shareholder return slightly positive and longer term returns still weak, which suggests recent interest is only cautiously rebuilding.

If XP's value story has you reassessing your watchlist, this is a good moment to broaden your search and check out 21 top founder-led companies

XP is trading at a clear discount to both analyst targets and intrinsic value estimates, even after the recent bounce. The real question now is how much of that gap fairly reflects its risks versus mispricing.

Most Popular Narrative: 31% Undervalued

XP's most followed valuation narrative places fair value at $23.17, well above the recent $15.99 close, which frames the current discount as meaningful.

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.

Read the complete narrative.

Want to see what sits behind that expansion story? The fair value rests on steady revenue gains, solid margins, and a future earnings multiple that assumes XP keeps scaling efficiently.

Result: Fair Value of $23.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, XP's story can shift quickly if competition continues to pressure fees or if higher marketing and technology spending does not translate into stronger revenue momentum.

Find out about the key risks to this XP narrative.

Next Steps

If XP's story so far feels only part complete, this is a good time to check the underlying details and pressure test the bullish points yourself. To see what investors are optimistic about, review the 5 key rewards

Looking for more XP investment ideas?

Before you move on from XP, give yourself an edge by lining up a few fresh ideas that could complement or even challenge your current thinking.

• Grab potential mispricing opportunities early by scanning 50 high quality undervalued stocks that combine solid fundamentals with attractive valuations.

• Prioritise resilience and sleep better at night by focusing on 78 resilient stocks with low risk scores that score well on financial strength and stability.

• Spot future leaders before the crowd catches on by checking the screener containing 18 high quality undiscovered gems hiding strong balance sheets and consistent performance.