StoneCo cuts 2026 guidance and withdraws 2027 targets after weak third quarter

what happened

According to Seeking Alpha, Brazilian payments company StoneCo reported third-quarter results below analyst expectations, driven by weaker transaction and subscription revenue. Adjusted basic earnings per share came in at R$2.33, versus R$2.39 a year earlier and an average analyst estimate of R$2.53.

Transaction and other services revenue fell to R$425.26 million from R$625.97 million, while financial income rose to R$2.80 billion and beat consensus. Adjusted gross profit dropped 8.0% year over year to R$1.48 billion.

The company cut its 2026 adjusted basic EPS guidance to R$9.1–R$9.5 from R$10.8–R$11.4, and narrowed its adjusted gross profit guidance to R$6.1–R$6.2 billion. It also withdrew its 2027 targets. Shares were down 0.26% at $7.70 on Nasdaq in after-hours trading.

why it matters

For investors in Brazil's fintech sector, the report signals softer demand for payment services and pressure on margins. The guidance cut and the withdrawal of 2027 targets reduce visibility on the company's future performance.

market impact

StoneCo and Brazilian fintech shares: weak results and lower guidance weigh on the stock

• ▼STNE pressure down — 2026 profit guidance was lowered and 2027 targets were withdrawn

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