XP Inc. Surges 6.4% on Q2 Earnings, Strategic Expansion

XP Inc. (XP) surged 4.23% in a two-day rally, marking a 6.40% increase over the past two days. The stock reached its highest level since September 2025, with an intraday gain of 6.32%, reflecting renewed investor confidence in the fintech firm’s strategic momentum and financial resilience.

The recent price surge aligns with XP’s strong Q2 2025 earnings, which highlighted record net income and 17% year-over-year asset growth. Analysts attribute the stock’s performance to the company’s ability to maintain profitability through operational efficiency, even as revenue growth moderated. A diversified product portfolio, including expansion into real estate funds and private equity, has further insulated XP from market volatility.

Analyst sentiment remains overwhelmingly positive, with a “Strong Buy” consensus and a 12-month price target of $23.80—implying a 19.30% upside from its recent close. This optimism stems from XP’s attractive valuation metrics, including a P/E ratio of ~10x, and its strategic focus on tech-driven financial services in Brazil. The firm’s goal to double client assets under custody by 2033 underscores its long-term growth narrative.

XP’s outperformance against broader market indices, such as its 68.35% year-to-date total return compared to the S&P 500’s 12.22%, highlights its appeal to value-oriented investors. Institutional confidence has been reinforced by analyst upgrades and a lean cost structure, enabling the company to reinvest savings into innovation. Its scalable technology platform and leadership in Brazil’s low-fee fintech sector further position XP to capitalize on the region’s growing middle class.