PagSeguro Digital Ltd: 1Q26 in line; weak revenue generation, but controlled opex and strong credit growth

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PagSeguro Digital Ltd: 1Q26 in line; weak revenue generation, but controlled opex and strong credit growth

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PagSeguro Digital Ltd

1Q26 in line; weak revenue generation, but

controlled opex and strong credit growth

Maintain Rating: BUY | PO: 12.00 USD | Price: 9.78 USD

Net income +4% YoY; banking outperforming payments 12 May 2026

Non-GAAP net income of R$575mn (+4% YoY and -15% QoQ) came 4% above BofAe. Equity

The beat was driven by lower effective tax rate, while EBT came in line. The quarter

Mario Pierry

showed strong credit book growth and continued cost discipline, partly offset by weak Research Analyst

payments trends. Loan growth of 36% exceeded the 25–35% FY26 guidance, reinforcing BofAS +1 646 743 0047

a constructive outlook for the business despite a volatile macro backdrop. On the other mario.pierry@bofa.com

hand, TPV was flat YoY, impacted by elevated interest rates, tough comps, and churn, Antonio Ruette >>

while declining take-rate led to consolidated revenue growth deceleration. Gross profit Research Analyst Merrill Lynch (Brazil)

increased just 1%, below the 6–9% FY26 guidance, but mgmt. reiterated that 1Q should +55 11 2188 4225

be the weakest in the year, with improving payments and banking trends ahead. Finally, antonio.ruette@bofa.com

PAGS continued to deliver operating leverage gains, driven by strict cost control. EPS AugustoResearch UeharaAnalyst >>

grew 12%, supported by buybacks, in line with the 9–13% guidance. We maintain our Merrill Lynch (Brazil)

+55 11 2188 4651

Buy rating, as we expect operating trends to improve over the coming quarters, while augusto.uehara@bofa.com

the stock trades at an attractive 5.4x ‘26E P/E, close to historical lows. Ernesto Gabilondo >>

Research Analyst