StoneCo Ltd. (NASDAQ:STNE) is one of the oversold software stocks to buy according to Wall Street analysts.
On May 14, StoneCo Ltd. (NASDAQ:STNE) shared its Q1 2026 results, reporting that total revenue rose 6.5% year over year to R$3.58 billion (about $679 million), which exceeded the R$3.55 billion that analysts expected
Adjusted EPS reached R$2.19, which although grew 15% year over year, it fell short of the R$2.28 consensus estimate. Pachai Leknettip/ StoneCo stated that the revenue growth was driven primarily by its expanding credit business. The business generated R$297 million in credit revenues, up 25% quarter on quarter and 186% year on year.
Healthy profitability in payments also contributed, noted StoneCo. It added that these gains more than offset a planned decline in deposit floating revenues, which the company had already begun redirecting as a lower-cost funding source in early 2025. However, the company noted that the credit growth meant that provisions for credit losses surged and pushed the cost of risk to 21.9%.