StoneCo Stock Drops 18.3% Despite R$2.84 EPS Beat and BRL3B Linx Sale
StoneCo stock plunged 18.3% despite Q4 EPS of R$2.84 beating estimates, 17.5% sales growth to R$14.2B and a 7.3x P/E ratio. Management sold Linx for BRL3B, forecasts 2026 share repurchases, 2027 capital retention, assumes low 12% Selic and stronger H2 TPV growth.
1. Q4 Results and Share Performance
In Q4 2025 StoneCo reported EPS of R$2.84 beating expectations, sales rose 17.5% to R$14.2 billion and adjusted annual EPS translated to a 7.3x P/E, yet shares plunged 18.3% as investors reacted to the outlook.
2. Strategic Linx Divestiture
The company sold its Linx software business for over BRL3 billion, exiting non-core software to concentrate on payments, banking and credit services and to fund growth initiatives.
3. 2026-2027 Financial Guidance
For 2026 StoneCo plans share repurchases throughout the year, while in 2027 it will retain and reinvest capital; guidance assumes Selic rates of low 12% by end-2026 and high 11% for 2027.
4. Growth Drivers and Risk Management
Management expects stronger TPV growth in H2 supported by improved onboarding and retention, is expanding its credit portfolio into higher-risk segments which may lift cost of risk, and will increase marketing spend with longer-term AI efficiency gains under assessment.