PagSeguro Digital (NYSE:PAGS) Posts Earnings Results, Misses Estimates By $0.01 EPS

PagSeguro Digital (NYSE:PAGS) released its earnings results on Tuesday. The company reported $0.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.01), FiscalAI reports. The business had revenue of $642.01 million during the quarter, compared to analyst estimates of $952.64 million. PagSeguro Digital had a net margin of 10.37% and a return on equity of 16.20%.

Here are the key takeaways from PagSeguro Digital’s conference call:

• TPV reaccelerated to BRL 128 billion, roughly flat year over year, with management saying it expects TPV growth to turn positive in Q2 and accelerate in the second half of 2026.
• Credit continued to scale quickly, with the expanded credit portfolio reaching BRL 51 billion, up 11% year over year, led by a 190% surge in working capital lending.
• Profitability improved despite higher rates, as net revenue excluding interchange fees rose 6.4% to BRL 3.3 billion and recurring non-GAAP net income increased 4% to BRL 575 million, though financial costs remained pressured by Brazil’s Selic rate.
• Operating leverage was a key strength, with operating expenses declining about 230 basis points as a share of revenue and management highlighting further efficiency gains from AI and process optimization.
• Capital returns remained strong, as PagBank returned more than BRL 2.4 billion over the last 12 months and announced another BRL 400 million dividend for June, while maintaining a managerial Basel ratio of 24.1% to support further growth and buybacks.

PagSeguro Digital Price Performance

Shares of PagSeguro Digital stock traded up $0.49 during midday trading on Thursday, hitting $9.12. 2,301,703 shares of the company were exchanged, compared to its average volume of 3,955,580. The firm has a market cap of $2.55 billion, a P/E ratio of 7.12, a PEG ratio of 0.40 and a beta of 1.37. PagSeguro Digital has a 52 week low of $7.74 and a 52 week high of $12.32. The firm has a 50 day simple moving average of $10.19 and a 200-day simple moving average of $10.19.

PagSeguro Digital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Wednesday, April 22nd will be given a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 11.4%. The ex-dividend date is Wednesday, April 22nd. PagSeguro Digital’s dividend payout ratio (DPR) is 81.25%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on PAGS. UBS Group raised their target price on PagSeguro Digital from $13.00 to $14.00 and gave the company a “buy” rating in a report on Wednesday, January 28th. Autonomous Res lowered PagSeguro Digital from a “hold” rating to a “strong sell” rating in a report on Thursday, April 30th. JPMorgan Chase & Co. lowered their target price on PagSeguro Digital from $13.00 to $12.00 and set a “neutral” rating on the stock in a report on Monday, April 13th. Wall Street Zen raised PagSeguro Digital from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of PagSeguro Digital in a report on Friday, May 8th. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $12.00.

Insider Activity at PagSeguro Digital

In other PagSeguro Digital news, Director Alexandre Mr Magnani sold 200,000 shares of PagSeguro Digital stock in a transaction on Friday, April 17th. The stock was sold at an average price of $11.26, for a total value of $2,252,000.00. Following the completion of the transaction, the director owned 607,390 shares in the company, valued at approximately $6,839,211.40. The trade was a 24.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Luis Frias acquired 498,500 shares of the business’s stock in a transaction on Friday, March 27th. The stock was acquired at an average price of $9.96 per share, with a total value of $4,965,060.00. Following the transaction, the director owned 2,673,605 shares in the company, valued at approximately $26,629,105.80. The trade was a 22.92% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure.

Hedge Funds Weigh In On PagSeguro Digital

Several institutional investors have recently bought and sold shares of PAGS. Vident Advisory LLC grew its stake in shares of PagSeguro Digital by 29.1% during the fourth quarter. Vident Advisory LLC now owns 15,233 shares of the company’s stock worth $147,000 after purchasing an additional 3,431 shares during the period. Quadrature Capital Ltd acquired a new position in PagSeguro Digital in the fourth quarter valued at about $155,000. BTG Pactual Asset Management US LLC bought a new stake in shares of PagSeguro Digital in the fourth quarter worth about $149,000. Cibc World Markets Corp bought a new stake in shares of PagSeguro Digital in the fourth quarter worth about $114,000. Finally, Federated Hermes Inc. bought a new stake in shares of PagSeguro Digital in the fourth quarter worth about $151,000. Institutional investors own 45.88% of the company’s stock.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd. is a Brazil-based financial technology company that specializes in digital payment solutions for merchants and consumers. Through its online platform and a suite of physical point-of-sale devices, the company enables businesses of all sizes to accept credit and debit cards, process e-commerce transactions, and manage payments via QR codes and digital wallets. In addition to payment acceptance, PagSeguro offers prepaid accounts, funds transfers, and working-capital credit lines designed to support small and medium-sized enterprises.

The company’s product portfolio includes portable card readers, countertop terminals, and mobile point-of-sale devices that connect via Bluetooth or cellular networks.