Key Takeaways NuFormer is expanding across credit, customer service and growth campaigns at NU.NU's $39.4 billion credit portfolio grew 37%, while risk-adjusted NIM rose to 12.4%.NuFormer now runs faster and cheaper, with AI agents handling over 60% of Brazil support chats. Nu Holdings Ltd. (NU - Free Report) is putting artificial intelligence deeper into its operating model, with NuFormer central to underwriting, customer service and growth. The company said the model draws on more than a decade of transaction history across over 100 million customers in Brazil, Mexico and Colombia, giving it a large base of financial behavior data.
NuFormer has become faster and cheaper to run. Its latest generation quadrupled its context length, training speed and inference speed while lowering production costs. The model is used for credit cards in Brazil and Mexico and unsecured lending in Brazil, while SME credit cards and Colombian cards are being tested.
The push matters because credit remains a major earnings driver. NU ended the second quarter of 2026 with a $39.4 billion credit portfolio, up 37% year over year. Risk-adjusted net interest margin rose to 12.4% from 9.5% in the first quarter, helped by stronger credit income and a lower cost of credit.
AI is also moving beyond underwriting. Generative AI agents now handle more than 60% of customer support conversations in Brazil, with ratings at or above human levels. NuFormer is also being used to target growth campaigns, with more than 100 campaigns already run using the platform.
The financial backdrop gives NU room to invest. Second-quarter 2026 gross revenues reached $5.9 billion, up 39% year over year, while net income hit $1.1 billion. The company served 139 million customers, ARPAC reached $17 and the efficiency ratio stood at 19.5%, showing that AI investment is being layered onto a scaled platform.
How Are Itau Unibanco & MercadoLibre Compete?Itau Unibanco (ITUB - Free Report) , a major Brazilian banking rival to Nu Holdings, is embedding generative AI across customer service, business banking and payments. In June 2026, Itau Unibanco partnered with Google to expand Gemini access and AI training for SMEs. By late July 2026, its ia.i assistant was already available to approximately 300,000 Superapp users.
MercadoLibre (MELI - Free Report) , via its Mercado Pago platform, competes with Nu Holdings across Latin American payments, credit and digital financial services. The company uses AI and machine learning in credit scoring, customer service, advertising and marketplace search. In second-quarter 2026, MELI completed the rollout of an AI powered search architecture across its five largest sites. In second-quarter 2026, Mercado Pago reached 88 million monthly active users.
NU’s Price Performance, Valuation and EstimatesShares of NU have gained 29.4% in the past three months, outperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 14.38X, well above the industry’s 11.55X. It carries a Value Score D.
Image Source: Zacks Investment Research
NU’s estimates have increased 3 cents over the past month. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at 86 cents.
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NU stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nubank, the digital bank owned by Nu Holdings (NU +0.03%), is one of the fastest-growing banks in the world. It posted record results in the most recent quarter, and yet the stock price is floundering, down about 13% year to date.
Are investors missing the boat on this Brazilian banking powerhouse?
Image source: Getty Images.
Expanding into the U.S. São Paulo-based Nubank launched 13 years ago as something new in its Brazilian market: a fully online digital bank. With no branches and little overhead, the idea was to reduce expenses, serve customers where they are, and operate more efficiently.
Nubank has achieved that, and then some. It has expanded into Mexico and Colombia and now has 139 million customers, adding 4 million in the second quarter alone. Most of them, about 118 million, are in Brazil, while Mexico has 16 million and Colombia has 5 million customers.
Nubank will soon be expanding into the United States. In January, it got conditional approval from the Office of the Comptroller of the Currency (OCC) to launch Nubank NA, a national digital bank in the United States.
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The customer growth numbers are accompanied by its increasingly engaged and active user base. In the second quarter, the average revenue per active customer (ARPAC) was $17, up from $16 in the previous quarter. Further, the monthly activity rate, which counts people actively using the app, jumped to 83.5% overall, up from 83% in Q1. In Brazil, it hit 86% for the first time.
The bank's efficiency has been outstanding. Its efficiency ratio, which measures how much the bank spends for every dollar of revenue, is 19.5%. That is extremely low, as most banks with branches are happy to have an efficiency ratio in the 50%-60% range. However, the efficiency ratio is up from 17.3% in Q1. The higher Q2 ratio is due to real estate and marketing expenses shifted from Q1, as well as costs for international expansion.
When you consider the efficiency, engagement, and customer growth, you get blowout earnings results. Nu generated $5.9 billion in revenue in Q2, up 39% year over year. Net interest income hit $3.7 billion, up 9% from the previous quarter, while net interest margin increased 180 basis points to 22.9%. Nu set a record for profitability with $1.1 billion in net income in Q2, up 17% from Q1 and 49% year over year. Also, the return on equity (ROE) rose to 33%, from 29% the previous quarter.
One of the concerns earlier this year was Nu's credit quality, as non-performing loans (NPL) had increased to 5%, up 89 basis points from Q4. But year over year, it was only up from 4.8%. In Q2, the NPL rate improved to 4.8% but was still up from 4.4% a year ago. The 90-plus-day NPL rate was 6.9% in Q2, up from 6.6% in the same quarter a year ago.
Nu's stock is up about 7% since the second-quarter earnings report came out on Aug. 13, signaling improving investor sentiment. It is trading at 20 times earnings and has a low PEG ratio of about 0.9, which means it is cheap relative to its long-term growth expectations.
SÃO PAULO--(BUSINESS WIRE)--Nu Holdings Ltd. ("Nu" or the "Company") (NYSE: NU), one of the world's largest digital banking platforms, today announced that it will host its first Investor Day on Tuesday, December 8, 2026, in New York City, with both in-person and virtual attendance available.
The event will feature presentations by David Vélez, Founder and global Chief Executive Officer, and other members of Nu's senior management team, covering the Company's long-term strategy, growth opportunities, and drivers of value creation across its markets.
Registration details and the full agenda will be shared closer to the event. A live webcast and supporting materials will be available at investors.nu, with a replay posted following the event.
Nu Holdings Ltd. (NU) is rated 'Strong Buy' following Q2 2026, driven by robust revenue and net income growth. Q2 results showed 55% YoY revenue growth, 66.5% net income growth, and a sustainable risk-adjusted NIM of 12.4%. Brazil and Mexico remain key growth drivers, with rising ARPAC, maturing cohorts, and significant room for customer penetration in Mexico.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NU, BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Nu Holdings (NU -2.65%) is a leading digital banking platform in Latin America. Although it sports a market capitalization of $71 billion, there's a good chance that U.S. investors haven't heard of the company. But it's a smart move to get familiar with Nu, as it has been a major disruptor in a big market.
This business is operating at an impressive level. It added 4 million customers last quarter, bringing the total to 139 million users, with 118 million in Brazil, its home market. Is the fintech stock priced for this growth?
Image source: Getty Images.
Nu's trajectory is characterized by rapid revenue and profit gains Nu's most recent financial results gave investors plenty of reasons to be bullish. During the second quarter, the company reported revenue of $5.9 billion, up 39% year over year on a currency-neutral basis. A higher customer count is the main driver of top-line gains.
It's important to pay attention to the unit economics here. Nu's monthly average revenue per active customer (ARPAC) increased 22% year over year to $17.10 in Q2. User growth will naturally decelerate as Nu scales, but it's extremely encouraging to see improved monetization from the existing customer base, likely due to cross-selling.
There might be no more powerful catalyst lifting this business than the fact that Latin America has a large unbanked and underbanked population. And Nu is capturing the opportunity. For instance, 35% of its customers in Mexico have never had a bank account. And 52% of customers never had a line of credit. This is what disruption looks like.
Nu's deposit base has also exploded, going from $18 billion in Q2 2023 to $45.3 billion today. This provides the funding to power it lending business. Deposits often are sticky, supported by high switching costs for customers.
Profitability is robust. Net income surged 49% to nearly $1.1 billion, exceeding $1 billion for the first time ever. And the net profit margin was 18.1%, better than the 16.4% posted in the second quarter of 2025.
Going back to the unit economics, it costs Nu on average $1 per month to serve each customer. That's only 5.8% of the ARPAC. What's more, the efficiency ratio, a bank's measure of operating expenses relative to net interest income and fee income, was 20% in the second quarter, down from 50% four years ago. A lower number is better, demonstrating improving operating leverage.
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Shares aren't trading at an expensive valuation As of Aug. 18, Nu shares trade 23% below their peak, a high-water mark established in January. They have fallen 14% just this year. However, the stock has risen by more than 80% during the past 36 months, bypassing the S&P 500 index over the same period.
It still trades at a compelling valuation. Investors can buy Nu at a forward price-to-earnings ratio of about 20. The business is growing rapidly, but it doesn't appear that the market is fully appreciating the growth story. This is a compelling setup for prospective investors.
There are risks to be aware of, though. Operating in Latin America, a developing region with volatile currencies, commodity-based economies, and unstable political and regulatory backdrops, introduces greater uncertainty. This is particularly true for a lender. Macroeconomic conditions in Latin America often are less stable than in the U.S.
Furthermore, Nu's $39 billion credit portfolio deserves some attention. Of this figure, 66% is credit cards, and 26% comes from unsecured loans, two product lines with a higher-risk profile. Non-performing loans, those that were 90 days or more past due, stood at 6.9% as of June 30. This metric has steadily increased during the past few years, but management doesn't appear too concerned.
Still, I believe it's worth considering Nu as an investment. Strong growth and a low starting valuation can result in winning returns.
Nu Holdings (NU -2.33%) owns NuBank, the largest digital bank in Latin America. It served 139 million customers in the second quarter of 2026, representing 30% growth from a year earlier. As a digitally native bank, it expanded much faster than its brick-and-mortar peers.
Most of Nu's customers are located in Brazil, where it already serves more than half of the country's adult population. To gradually reduce its dependence on that maturing market, Nu is aggressively expanding in Mexico -- but that market has a higher ratio of non-performing loans. Nu is also ramping up its spending on additional products in Mexico -- including credit cards, bank deposits, loans, and other services -- to grow its revenue per active customer.
Image source: Getty Images.
Nu's customer base in Mexico grew 32% year over year to nearly 16 million customers in the second quarter. However, that expansion boosted its credit risk and average cost per active customer while compressing its margins. The Mexican government recently authorized Nu Mexico to operate as a full-fledged bank in the country. Still, that approval could also expose it to tighter regulations, stricter capital requirements, and other banking expenses. So is Nu's Mexican business finally starting to carry its own weight, or is it still its weakest link?
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What milestones has Nu's Mexican business achieved? Nu expanded into Mexico in 2020. Over the following five years, it launched its credit card, Cuenta Nu savings and debit accounts, Cajita digital savings app, and personal loans. It now serves 98% of all municipalities in Mexico, as well as 78% of customers outside major cities.
Before joining NuBank, 35% and 52% of its Mexican customers lacked bank accounts and credit cards, respectively. Only 63% of Mexican adults had bank accounts at the end of the second quarter, compared with 94% in Brazil. Nu still only serves 16.5% of Mexico's adult population -- so it still has plenty of room to expand.
Nu's Mexican business broke even for the first time in the first quarter of 2026. It reached that milestone two years faster than its flagship Brazilian business, and silenced the bears who had claimed the Mexican market would become a money pit.
Its average revenue per active customer (ARPAC) in Mexico also reached $12.30 in the second quarter, compared to Brazil's $5.60 at the equivalent phase of its expansion in the second quarter of 2020. All of those figures clearly indicate that Nu's Mexico business isn't just carrying its own weight -- it's becoming the fintech company's core growth engine.
Brazil has about 213 million people. As of the end of the second quarter, about 118 million of them -- more than half the country, before even narrowing the count to adults -- were customers of Nu Holdings (NU +9.33%), the digital bank behind the Nubank brand.
The company reported second-quarter results after the closing bell on Thursday, and the headline number was profit. Net income surpassed $1 billion for the first time, rising 49% year over year on a currency-neutral basis, with a 33% return on equity.
But the numbers that describe saturation may matter more for the long run. Nu's monthly activity rate in Brazil surpassed 86% for the first time, meaning the accounts aren't just open -- they're being used.
So what does growth look like for a bank that has, in one sense, already won its home market?
Image source: Getty Images.
Growth without new customers
Nu added about 4 million customers in the quarter, reaching 138.9 million globally, up 13% year over year. That is a solid rate, and also a slowing one. It is the natural arithmetic of a company running out of Brazilians to sign up.
The growth now comes from each customer, not just more of them. Monthly average revenue per active customer (ARPAC) reached $17.10 in the quarter, up 22% year over year in currency-neutral terms, while the monthly cost to serve an active customer held around $1. In annual terms, that is about $205 of revenue per active customer against about $12 of cost to serve. The overall monthly activity rate expanded sequentially to 83.5%, with Brazil above 86%.
The balance sheet is scaling with the engagement. On a currency-neutral basis, Nu's credit portfolio grew 37% year over year to $39.4 billion, deposits grew 18% to $45.3 billion, and gross profit climbed 43% to $2.4 billion.
Put another way, the average active customer generates more revenue every quarter, costs almost nothing to serve, and increasingly borrows from and deposits with the company. With engagement above 80%, gains like those can flow through to profit quickly. That is how net income grew several times faster than the customer count.
"This is no longer a hypothesis, and we are now generating more than a billion dollars in quarterly net income," founder and global CEO David Vélez said in the company's second-quarter report.
Mexico looks like Brazil in 2020
The headroom argument rests on the newer markets. Nu ended the quarter with 15.8 million customers in Mexico (a count the company says reached 16 million in July) and more than 5 million in Colombia. Nu says it reaches 16.5% of Mexico's adult population, comparable to where Brazil stood in 2020, but that Mexican cohorts are monetizing earlier, with ARPAC of $12.30 at a stage when Brazil's was $5.60.
That comparison is, to me, the whole bull case in miniature. Brazil went from 16% of adults to more than half of all Brazilians in about six years, and profitability followed. If Mexico and Colombia repeat even part of that path, they likely carry the customer growth for years to come.
Neither is guaranteed to follow it. Both countries come with entrenched incumbents and their own regulators. But customers who pay more, earlier, are an encouraging start.
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Still cheap?
Shares trade near $15 as of this writing, after jumping about 8% in after-hours trading on the report -- about 23 times earnings.
Measured against analysts' forecasts for the coming year, the forward price-to-earnings ratio is closer to 17. The gap between those two multiples is the market acknowledging the profit growth.
And against the pace of that growth -- earnings per share rose 47% over the past year -- the stock's valuation looks arguably modest.
However, a saturated home market changes the shape of the risk. Nu's growth in Brazil from here depends on wallet share and credit. And a credit portfolio growing 37% a year, in a country where the company already banks more than half the population, is the number worth watching. Credit is where fast-growing lenders have historically gotten hurt.
I think the second quarter settled one argument. A digital bank serving most of a large country can be extraordinarily profitable, and the model no longer needs the benefit of the doubt. The growth argument now runs through Mexico and Colombia. For now, they look the way Brazil did in 2020, by the company's own measure.
Nu Holdings stock is showing exceptional strength. Why is NU stock surging?
Nu Holdings Beats on Both Earnings and RevenueNu Holdings reported second-quarter earnings of 22 cents per share, beating the 20-cent consensus estimate by 10% and up 69.23% from 13 cents per share a year earlier. Revenue came in at $5.51 billion, topping Wall Street’s $5.23 billion estimate by 5.48% and rising 50.30% from approximately $3.67 billion in the same period last year. Separately, the company reported gross revenue of nearly $5.9 billion for the quarter, up 39% year-over-year.
Net income reached $1.1 billion for the first time in the company’s history, up 17% from the first quarter and 49% from a year earlier, with return on equity closing the quarter at 33%. Gross profit rose 43% year-over-year and 25% sequentially to $2.4 billion.
Nu Keeps Adding Customers Across Latin AmericaThat profit growth came alongside continued expansion across Nu’s customer base. The company added about 4 million customers during the quarter, bringing its global total to 139 million. Average revenue per active customer climbed to about $17, while the monthly activity rate rose to 83.5%, with Brazil topping 86% for the first time.
Founder and CEO David Vélez pointed to the company’s growth in Mexico as a key milestone, noting that Nu became the country’s largest digital bank with 16 million customers as of July. He also highlighted the addition of a full banking license in Brazil and the launch of a new offering called Croma for higher-tier customers.
Loan Book and Deposits Both Grew at NUBehind that customer growth, Nu’s balance sheet expanded as well. The company’s total credit portfolio grew 37% year-over-year and 5% sequentially to $39.4 billion, split between $26 billion in credit cards, $10.3 billion in unsecured lending and $3.1 billion in secured lending.
Asset quality also improved during the quarter. The 15-90 day non-performing loan ratio improved by 16 basis points to 4.8%, largely due to seasonal factors. The 90-plus day ratio rose 35 basis points to 6.9%, which the company attributed to the typical seasonal migration of delinquencies from the first quarter.
Needham Raises Price Target On Nu HoldingsThat combination of profit growth, customer expansion and balance sheet strength drew a positive response from at least one Wall Street analyst. Needham analyst Kyle Peterson maintained a Buy rating on Nu Holdings and raised his price target to $19 from $17 following the results.
NU Shares Are SoaringNU Price Action: Nu shares were up 10.84% at $15.44 at the time of publication on Friday, according to Benzinga Pro.
Image: Diego Thomazini/Shutterstock
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Shares of Nu Holdings (NU +9.87%) opened 13% higher on Friday. The Brazilian company behind the Nubank fintech brand reported Q2 results last night, crushing Wall Street estimates.
Image source: The Motley Fool.
Nu's Q2 by the numbers Nu's IFRS revenues (the international equivalent of GAAP standards) rose 50% year-over-year to $5.51 billion. Adjusted earnings jumped 66% to $0.22 per diluted share. The average analyst had expected earnings near $0.20 per share on revenue in the neighborhood of $5.39 billion.
The company added 4 million customers during the quarter. The global client count was 139 million, up from 122.7 million in the year-ago period. The Brazilian consumer market remained Nu's core business, but the customer count soared in Mexico (up 31.7%) and Colombia (up 55.9%).
Crucially, Nu's payment volume rose 30.3% year over year, more than doubling the 13.3% customer growth. The fintech is not only attracting many new customers, but existing ones are also using its services more often.
Return on equity held steady at 33%, and the efficiency ratio came in at 19.5%. For context, most traditional banks operate with efficiency ratios in the 50%-60% range, and lower ratios are better. Nu's digital-only model simply costs less to run.
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The next chapter starts in Mexico The numbers tell a familiar story for Nu watchers: more customers, deeper engagement, better margins. But the real headline came from Mexico, where regulators just handed Nu a full banking license. Two weeks later, Nubank is the largest digital bank in a country where 85% of people still prefer paying in cash. The runway is long.
CEO David Vélez framed Mexico as "Brazil's playbook running faster." These operations reached breakeven in six years versus eight in Brazil. Early cohorts are monetizing at more than double the rate Brazil showed at the same stage.
Meanwhile, Nu is definitely planning U.S. services. On the earnings call, management discussed the upcoming launch and AI's role in building out North American services. Freshly installed CFO Rob Livingston works from a San Francisco Bay office, bringing years of CFO experience from mighty Visa's (V -0.06%) North American division.
Nu expects to spend 12 to 30 months building out its U.S. credit capabilities after launch. If Mexico is today's growth engine, I can't wait to see the U.S. launch.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nu Holdings and Visa. The Motley Fool has a disclosure policy.
Key Takeaways NU says its record 12.4% risk-adjusted NIM should stay in the same region for the foreseeable future.NU saw no broad consumer-credit weakening as mix shifts and seasonality shaped delinquency trends.NU expands AI across underwriting and support as Mexico's banking transition broadens product capacity.
Nu Holdings Ltd. (NU - Free Report) used its second-quarter 2026 call to emphasize the durability of risk-adjusted profitability while keeping credit discipline central to growth. Founder, Chairman and CEO David Vélez and CFO Rob Livingston also highlighted deeper monetization in Brazil, Mexico's banking transition and broader AI deployment.
The Q&A centered on whether current margins can hold, how consumer credit is behaving and where AI is improving underwriting and productivity.
NU Frames 12.4% Risk-Adjusted NIM as SustainableNU reported EPS of $0.22 versus the Zacks Consensus Estimate of $0.20, while revenue of $5.51 billion topped the $5.45 billion consensus.
CFO Rob Livingston said risk-adjusted net interest margin expanded to a record 12.4% from 9.5% in the prior quarter. He told a BofA Securities analyst that Desenrola explained about one-third of the upside versus prior expectations, with the rest from solid credit performance and higher balances earning yield.
In Q&A, Livingston told a Goldman Sachs analyst that margins should remain in the same region for the foreseeable future. He later cautioned a Morgan Stanley analyst that 12.4% should not be treated as a floor.
Nubank Defends Credit Quality Amid Mix ShiftsLivingston said 15- to 90-day delinquencies improved 16 basis points (bps) to 4.8%, while 90-plus delinquencies rose 35 bps to 6.9% on seasonal migration.
Livingston attributed the early-delinquency improvement mainly to seasonality, partly offset by deliberate expansion into higher-risk, higher-return cohorts. He said the company saw no broad-based weakening in consumer credit.
A BofA Securities analyst pressed on the longer-term rise in 90-plus delinquencies. Livingston clarified that mix shifts in where Nubank lends are driving the broader upward trend, while seasonal effects remain present.
NU Expands NuFormer Across Core DecisionsVélez said NuFormer now supports credit cards in Brazil and Mexico and unsecured lending in Brazil, with SME and Colombian card applications in testing.
Vélez said AI agents handle more than 60% of customer-support conversations in Brazil at or above human parity. He also described AI use across deposits, growth and pricing decisions.
On staffing, Vélez told an Autonomous analyst that headcount should not change significantly from roughly 10,400, while AI could make employees two to five times more productive over the next few years.
Nubank Targets More Wallet Share in BrazilVélez framed Brazil's next phase around deeper relationships with existing customers rather than customer acquisition alone. ARPAC reached about $17, while older cohorts are already in the mid-$20s.
Vélez highlighted Croma, launched in July for Super Core customers, as a way to bundle enhanced credit, banking and lifestyle benefits around primary banking relationships.
He also pointed to small businesses as an under-monetized opportunity. Nubank serves 6.8 million small businesses, but Vélez said the company is only beginning to monetize that base more fully.
NU Puts Mexico First as U.S. Work StartsVélez said Mexico's new banking license adds payroll deposits, higher deposit insurance and broader product capacity. He characterized Mexico as Brazil's playbook moving faster.
In Q&A, Vélez said a base case for Mexico is a business equal to 60% to 70% of Brazil, with further upside tied to digital-payment adoption and utilization.
CFO Rob Livingston said a future U.S. entry would be kept within 100 basis points of the efficiency ratio. He expects U.S.-specific credit models to require 12 to 30 months of data building and testing.
Nubank Keeps Investment Discipline in FocusLivingston reiterated that the full-year efficiency ratio should average about 20%, even as Nu invests in international expansion and technology.
Vélez emphasized continued investment in product quality, customer experience and growth rather than near-term earnings optimization. Management's stated priorities remained expansion, disciplined underwriting and operating leverage.
NU's Zacks Signals Stay MixedNU currently carries a Zacks Rank #4 (Sell). Its Momentum Score of A is the strongest style signal, while its Value Score of D, Growth Score of D and VGM Score of D indicate weaker readings across those categories.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks methodology treats Style Scores as complements to the Zacks Rank, with stronger combinations centered on top-ranked stocks and A or B scores. The Zacks Rank can change as earnings estimates are revised after the just-reported results.
Earnings season can be humbling, so I hope you allow me the opportunity to boast when given the chance. The last time I wrote about Nu Holdings (NU +9.87%) -- on June 3 -- the Latin American fintech was sliding. The parent company of Brazil's fast-growing NuBank was reeling from analyst downgrades and mounting headwinds.
I argued that it wasn't too soon to call a bottom on the stock, the same day it hit a 52-week low of $11.20. For now, I was right. Following weeks of upticks and a jump after posting blowout results after Thursday's market close, Nu has jumped almost 40% from its June low.
I guess it's time for another bold prediction: Nu's bounce is just getting started.
Image source: Getty Images.
Banking on a rebound
Nu Holdings has come a long way in a short time. The digital banking platform that launched in Brazil just a dozen years ago, in the form of a no-fee credit card for mass-market users, now reaches more than 62% of the country's adult population.
Thursday afternoon's financial update shows there is still significant growth potential for Nu and its shareholders. The fintech speedster is now serving 138.9 million accounts, a 13% increase over the past year.
That's decent, but here's where the story gets better: Revenue rose three times faster in the second quarter, climbing 39% to $5.9 billion. Many factors are driving this top-line surge, but it ultimately comes down to Nubank customers leaning more on the company for their financial needs.
The activity rate keeps inching higher with every passing quarter. Purchase volume continues to outpace account growth. Customer deposits have risen 18% over the past year. Its credit card and loan portfolio is now 37% larger than it was a year ago.
The result is that the monthly average revenue per active customer is now $17.10, a 22% leap over the past year. This has been the default setting for that juicy metric, which has more than doubled over the last four years. The same can be said about its accounts, and some pretty spectacular growth starts to happen when you stack those two metrics on top of one another.
The story gets even better on the bottom line. It still costs Nu roughly $1 a month to service an account. Scalability can be powerful, and this historically high-margin operator just delivered its first quarter of more than $1 billion in net income. Earnings surged 49% for the quarter. It easily exceeded expectations on both ends of the income statement.
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Nu Holdings stock opened 13% higher on Friday after its blowout performance. But here's the kicker: Shares are still trading slightly lower in 2026.
The market was rattled a couple of months ago when Rob Livingston was named Nu's new CFO. It wasn't about him, as he's more than qualified, having served as Visa's former CFO for North America. Analysts had just warmed up to outgoing CFO Guilherme Lago, who took the company public in 2021 and helped instill a low-cost structure that has enabled Nu to deliver strong growth and improve margins.
There are also concerns as Nu delves deeper into offering loans, heightening credit risks and initial loan-loss provisions, which have weighed on Latin American bellwether MercadoLibre (MELI +1.35%). Both stocks are posting monster growth but are trading 6% to 8% lower year to date in an otherwise buoyant market.
The bottom line -- literally and figuratively -- is that Nu is pretty cheap for a company growing at a heady clip. You can buy Nu Holdings for less than 15 times next year's analyst profit target right now. You can also expect Wall Street pros to push their projections higher, driving forward earnings multiples lower, in the coming days.
I'm excited to see one of my favorite fintech stocks deliver. It conquered Brazil in a dozen years, and it's growing even faster in Mexico after officially becoming that country's largest digital bank this summer. Its third market -- Colombia -- has been slower to come around, but now Nu Holdings has its sights set on the U.S. market, where there is no shortage of Brazilians and other Latin Americans familiar with the Nubank brand.
I won't try to be cocky and call for a bottom the next time there is a substantial pullback, but it feels pretty good this time around.
Nu Holdings NU shares are ripping higher this morning after the neobank reported blowout fiscal Q2 earnings, featuring a decisive top- and bottom-line beat.
On the back of record unit economics, NU's revenue climbed 39% year-on-year to $5.9 billion – helping its net income soar a remarkable 49% to $1.1 billion in the second quarter.
The quarterly print adds to momentum that has already driven NU stock up more than 30% since early June.
Investors are cheering Nu Holdings primarily because the Q2 marked its first quarter of $1 billion+ net income since its inception in 2013.
On a per-share basis, the company earned $0.22 in its second fiscal quarter, handily beating $0.20 that analysts had forecast.
Investors should note that there’s significant technical momentum in play on August 14th as well.
The post-earnings rally pushed NU shares past their 20-day moving average (MA), indicating bulls have taken back control and the upward pressure could sustain in the near-term.
NU stock looks attractive also because the company’s Q2 risk-adjusted net interest margin (NIM) expanded to a record 12.4%, up from 9.9% a year ago, beating high-side bull cases (which centered around 11%).
Crucially, management noted this margin profile appears sustainable in the near term – especially since the efficiency ratio hit a record low, highlighting strong operating leverage as fixed overhead costs remained contained while monthly average revenue per active user (ARPAC) climbed more than 35% versus last year to $17.1.
Investors could also take heart in the fact that options pricing currently suggests Nu Holdings isn’t out of juice just yet.
The put-to-call ratio on contracts expiring mid-September sits at 0.27 currently, with $16.65 upper price indicating potential for another 7.58% rally from here over the next four to five weeks.
Nu Holdings' second-quarter release also alleviated another major concern: cost of credit – which had pressured the stock in Q1 due to credit quality fears – declined sequentially to $1.7 billion.
This suggests that asset quality and underwriting in Brazil remain well-controlled.
Moreover, the fintech firm added 4 million customers in Q2 to reach 139 million clients globally, with the Mexico unit reaching break-even after securing a full banking license earlier this month.
This unlocked full deposit-taking and lending capabilities in its fastest-growing market.
Finally, NU's board approved a new $1 billion share repurchase program, signaling confidence in future cash generation and balance sheet strength.
Wall Street analysts also believe the company remains undervalued at current levels.
According to The Wall Street Journal, the consensus rating on NU shares sits at Overweight currently, with the mean price target of just over $17 indicating potential upside of another 11% from here.
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Shares of Nu Holdings (NYSE:NU | NU Price Prediction) are up 10% Friday afternoon to $15.35, while StoneCo (NASDAQ:STNE) stock is down 6% to $9.59. The split follows both companies reporting Q2 2026 results after Thursday’s close.
This mainly looks like a single-name Nu Holdings repricing within the Latin America fintech complex. MercadoLibre (NASDAQ:MELI) stock is rising only 1%, Inter & Co (NASDAQ:INTR) shares are unchanged, and Itau Unibanco (NYSE:ITUB) stock is slipping 1%. The iShares MSCI Brazil ETF (NYSEARCA:EWZ) is also hardly moving as the EWZ ETF is only down half a percent today. Meanwhile, the Global X FinTech ETF (NASDAQ:FINX) is down 1.33%, so neither the geography nor the sector seems to be giving Nu Holdings stock a lift.
Nubank is breaking from its own pack, and the flat-to-lower peer action is the evidence. (For clarity: Nu Holdings Ltd. is the legal corporate entity, while Nubank is the consumer brand and the name on the app.) The divergence across Brazilian fintech peers today underscores that this is a company-specific repricing rather than a broader sector rotation.
Record Quarter Powers the Move
Nu Holdings reported Q2 2026 net income of $1.06 billion per Reuters (the company’s release states $1.1 billion), up 49% year over year (YoY) on an FX-neutral basis, beating a Visible Alpha estimate of $967.2 million. This crossed the $1 billion mark for the first time in company history. The company’s gross revenue reached nearly $5.9 billion, up 39% YoY, ahead of consensus (Reuters cited $5.6 billion via Visible Alpha; Stocktwits cited roughly $5.48 billion per Koyfin).
Notably, Nu Holdings added roughly 4 million customers in the quarter to reach 139 million globally, with almost 118 million in Brazil, 15.8 million in Mexico and more than 5 million in Colombia. Moreover, Nu Holdings’ average revenue per active customer (ARPAC) reached approximately $17 and the monthly activity rate expanded to 83.5%, with Brazil surpassing 86% for the first time. The company’s gross profit reached $2.4 billion, up 43% YoY, and return on equity (ROE) closed the quarter at 33%.
The bigger surprise sits in the margin line. Nu Holdings’ net interest margin expanded 180 basis points to 22.9%, and risk-adjusted NIM expanded 290 basis points to 12.4% from 9.5% in Q1 2026. Plus, Nu Holdings’ total credit portfolio grew 37% YoY to $39.4 billion and deposits reached $45.3 billion, up 18% YoY.
The Risk Signals Under the Beat
Not everything at Nu Holdings printed clean. Nu’s 90-plus day non-performing loan (NPL) ratio increased 35 basis points to 6.9%, which management attributed largely to seasonal migration of Q1 early delinquencies. In addition, Nu Holdings’ efficiency ratio worsened to 19.5% from 17.6% in Q1, though it still improved from 21.3% in Q2 2025.
Nu Holdings’ cost of credit declined 9% quarter over quarter to $1.7 billion, but per Reuters remains 60% higher than a year earlier. Nu Holdings’ leading 15-90 day NPL ratio did improve 16 basis points to 4.8%, with most of that attributed to seasonality.
Peers Fail to Follow
StoneCo shares are moving the other way after Q2 2026 revenue of R$3.6 billion, cost of risk held at 21.5%, and a R$200 million non-recurring provision tied to a distressed credit card issuer. StoneCo stock is down 35% year to date (YTD), with management flagging a “considerably more challenging” backdrop and guiding toward the lower end of full-year ranges.
Inter & Co stock is down 38% YTD, MercadoLibre shares are down 8% YTD, and Itau Unibanco stock, up 1% YTD, is slipping today. The Global X FinTech ETF is down 10% YTD and the iShares MSCI Brazil ETF, up 5% YTD, is flat on the session. Both funds are diversified, so a single constituent’s move gets diluted, which reinforces the divergence read.
The Valuation and What to Watch
Nu Holdings stock has closed a big valuation gap on the day. Susquehanna raised its price target on Nu Holdings to $16 from $13 while maintaining a Neutral rating, which puts Nu Holdings shares at $15.35 within pennies of that target. Susquehanna analysts wrote, “We believe bull investors were working with ~11% risk-adjusted NIM, meaning this is a solid beat even for investors who were positive into the print.”
If Friday’s gains hold, NU stock shares are on track to reach their highest level in more than five months and post their biggest single-day percentage gain since August 2022. New CFO Rob Livingston stated on Nu Holdings’ analyst call that the current level of risk-adjusted NIM is seen as sustainable in the foreseeable future. Furthermore, founder and global CEO David Velez asserted that the company is “now generating more than a billion dollars in quarterly net income.”
Investors can watch for whether the 90-plus day delinquency uptick is truly seasonal or the start of credit deterioration as Nu Holdings pushes into higher-risk segments, whether the Mexico launch and coming U.S. entry convert into revenue, and whether the sell side lifts targets to catch up with price. Your position sizing should reflect that a stock trading near its analyst target after a 10% single-session jump has limited room on consensus math.
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NU Holdings (NU) delivered record Q2 2026 results, surpassing $1 billion in net income and achieving 39% YoY revenue growth with strong operational efficiency. NU's customer base expanded to 139 million, with rising activity rates and monthly revenue per active user up 22% YoY, while cost per user remains just $1. Risk-adjusted profit margin soared to 12.4%, driven by high-yielding credit products and effective risk management, outpacing traditional and fintech peers.
Brazilská digitální finanční skupina Nu Holdings zveřejnila výsledky hospodaření za druhé čtvrtletí roku 2026. Celkové výnosy meziročně vzrostly o 50 % na 5,51 mld. USD a překonaly průměrný odhad analytiků ve výši 5,37 mld. USD. Nad očekáváním skončil také čistý zisk, který dosáhl 1,06 mld. USD. Počet klientů meziročně vzrostl o 13 % na 138,9 mil.
Výsledky společnosti Nu Holdings (NU) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Výnosy (mld. USD) 5,51 5,37 3,67 Čistý zisk (mld. USD) 1,06 0,95 0,64 Zisk na akcii (EPS, USD/akcie) 0,22 -- 0,13
Výsledky za 2Q Celkové výnosy dosáhly 5,51 mld. USD (+50 % meziročně), čímž překonaly konsensus analytiků ve výši 5,37 mld. USD. V rámci manažerského výkazu hrubé výnosy dosáhly téměř 5,9 mld. USD (+39 % meziročně). Čistý úrokový výnos (NII) činil 3,7 mld. USD (+9 % mezikvartálně), přičemž čistá úroková marže vzrostla na 22,9 %.
Čistý zisk dosáhl 1,06 mld. USD (+67 % meziročně), nad odhadem analytiků ve výši 0,95 mld. USD. Hrubý zisk vzrostl o 43 % meziročně na 2,4 mld. USD.
Rentabilita vlastního kapitálu (ROE) dosáhla 33 %.
Čistý zisk, zdroj: Nu Holdings
Počet klientů vzrostl meziročně o 13 % na 138,9 mil., mírně pod odhadem analytiků ve výši 139,52 mil. Za druhý kvartál Nu získala přibližně 4 mil. nových klientů. Měsíční průměrné výnosy na aktivního zákazníka (ARPAC) dosáhly přibližně 17 USD a míra aktivity zákazníků vzrostla na 83,5 %.
Celkové vklady dosáhly 45,3 mld. USD (+18 % meziročně při konstantních směnných kurzech). Celkové úvěrové portfolio se rozšířilo na 39,4 mld. USD, z toho kreditní karty tvořily 26 mld. USD, nezajištěné úvěry 10,3 mld. USD a zajištěné úvěry 3,1 mld. USD.
Úvěrové portfolio, zdroj: Nu Holdings
Ukazatel NPL 15–90 klesl mezikvartálně o 16 bazických bodů na 4,8 %, především vlivem sezónnosti. Tento efekt byl částečně kompenzován cílenou expanzí do segmentů s vyšším rizikem a potenciálním výnosem. Ukazatel NPL 90+ naopak vzrostl o 35 bazických bodů na 6,9 %, což společnost připisuje především sezónnímu přesunu dřívějších delikvencí z prvního čtvrtletí.
Ukazatel efektivity (Efficiency Ratio) vzrostl na 19,5 % ze 17,6 % v předchozím čtvrtletí, meziročně se však zlepšil z 21,3 %.
Komentář vedení „Před třinácti lety jsme začali s jednoduchou hypotézou: že banka postavená na technologiích, bez poboček a bez historických struktur, které by musela bránit, může obsluhovat stovky milionů lidí lépe a za zlomek nákladů. To už není hypotéza a nyní vytváříme více než jednu miliardu dolarů čtvrtletního čistého zisku. Začátkem tohoto měsíce jsme spustili naši banku v Mexiku a stali se největší digitální bankou v zemi se 16 miliony zákazníků. Tím jsme tam dokončili naši transformaci a získali možnosti, které jsme dříve neměli. V Brazílii dále rozvíjíme naši strukturu a přidáváme k našemu podnikání plnou bankovní licenci. Spustili jsme také Croma pro naše zákazníky Super Core a stejný model primárního bankovnictví posouváme do vyššího segmentu s ještě větším ziskovým potenciálem. Základem toho všeho je NuFormer, náš základní model pro finanční chování, který nyní v celé společnosti podporuje rozhodování v oblasti úvěrování, zákaznického servisu a růstu,“ uvedl David Vélez, zakladatel a generální ředitel Nubank.
Akcie Nu Holdings Akcie společnosti Nu Holdings (NU) v předburzovní fázi obchodování posilují o 8,3 % na 15,08 USD.
Akcie NU Holdings (NU) včera uzavřely na 13,93 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 67,3 P/E 18,9 Vývoj za letošní rok (%) -16,8 Očekávané P/E 16,4 52týdenní minimum (USD) 11,2 Prům. cílová cena (USD) 17,7 52týdenní maximum (USD) 19,0 Dividendový výnos (%) --
Zdroj: Nu Holdings, Bloomberg
Buyback Capacity Is Rising Across 3 Soaring and Sinking StocksNU NYSE: NU reported second-quarter 2026 net income of $1.1 billion, its first quarter above the $1 billion mark, as customer growth, deeper engagement and expanding credit income supported profitability. Net income rose 49% year over year and 17% sequentially, while return on equity reached a record 33%.
Founder, Chief Executive Officer and Chairman David Vélez said the company’s customer base reached 139 million, including nearly 118 million in Brazil and more than 5 million in Colombia. Mexico reached 16 million customers at the end of July. The company’s activity rate rose sequentially to 83.5%, while Brazil’s activity rate surpassed 86% for the first time.
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A Weaker Dollar Could Put These 3 Industrial Stocks Back in FocusAverage revenue per active customer, or ARPAC, reached $17, and gross revenue totaled nearly $5.9 billion. Nu maintained an efficiency ratio near 20% while continuing to invest in Brazil, Mexico, Colombia and international expansion, Vélez said.
Credit Growth and Margins Chief Financial Officer Rob Livingston said Nu’s consolidated credit portfolio reached $39.4 billion, up 37% year over year and 5% from the prior quarter. Credit card balances rose 35% to $26 billion, unsecured lending increased 45% to $10.3 billion, and secured lending grew 30% to $3.1 billion.
3 Up-and-Coming Stocks That Could Be the Next NVIDIADeposits ended the quarter at $45.3 billion, up 18% year over year and 6% sequentially. Brazil accounted for $36.4 billion of deposits, followed by Mexico with $5.7 billion and Colombia with $3.3 billion. Mexico deposits declined modestly as part of an ongoing deposit-optimization strategy, Livingston said, while the company’s loan-to-deposit ratio remained 35%.
Net interest income reached $3.7 billion, up 9%, and net interest margin expanded 180 basis points to 22.9%. Risk-adjusted net interest margin climbed to a record 12.4%, from 9.5% in the prior quarter, supported by lending growth, a greater mix of unsecured lending and lower cost of credit.
Cost of credit fell sequentially to $1.7 billion. Livingston said Brazil’s Desenrola debt-renegotiation program accounted for about 5% of the cost-of-credit impact and helped nearly 1.8 million customers renegotiate overdue balances. In a question-and-answer session, he said Desenrola contributed to the improvement in risk-adjusted margin but represented a minority of the quarterly gain.
Nu said 15- to 90-day delinquencies improved 16 basis points sequentially to 4.8%, while 90-plus-day delinquencies increased 35 basis points to 6.9%, reflecting the seasonal migration of earlier delinquencies. The company said its allowance for expected credit losses increased to $6.6 billion from $6.1 billion, primarily due to portfolio growth and intentional risk expansion. Total coverage over 90-plus-day nonperforming loans stood at 244%.
Livingston said Nu did not see evidence of broad-based consumer-credit weakening in its portfolio, though the company remains vigilant. Vélez said Nu’s underwriting assumes conditions will deteriorate and that its relatively short-duration products and primary banking relationships provide flexibility to respond to changing conditions.
Revenue, Expenses and Outlook Gross profit rose 43% year over year and 25% sequentially to $2.4 billion. Nu said credit represented 41% of gross profit during the quarter, with fees accounting for 25% and float income making up 34%.
Net revenue surpassed $4 billion for the first time, reaching $4.1 billion, up 8% sequentially. Operating expenses totaled $806 million, rising 20% from the first quarter as real-estate and marketing spending shifted into the second quarter and the company continued to invest internationally.
The efficiency ratio was 19.5%, compared with 17.6% in the first quarter. Livingston said the first-quarter figure benefited from temporary timing effects and reiterated that Nu expects its full-year efficiency ratio to average about 20%.
Addressing margin expectations, Livingston said the company expects risk-adjusted net interest margin to remain “in the same region” as current levels for the foreseeable future, though he emphasized that 12.4% should not be viewed as a floor. He attributed the quarter’s outperformance versus prior expectations partly to Desenrola, solid credit performance and stronger-than-expected balances generating yield during the quarter.
Brazil Segmentation and Mexico Banking License Vélez identified Brazil as Nu’s largest growth opportunity, particularly through expanding its share of customers’ financial activity. The company launched Croma in July, a subscription-based offering for what it calls “super core” customers between its mass-market and high-income segments. Croma includes enhanced credit offerings, banking and lifestyle benefits, NuCel and a ChatGPT Gold subscription.
Nu also continues to target higher-income consumers through Ultravioleta, which had nearly 1 million customers. Ultravioleta purchase volumes and assets under custody increased 41% and 37%, respectively, year over year in the second quarter.
For small businesses, Nu said it serves 6.8 million customers in Brazil, making it the country’s largest financial institution by number of business customers. Vélez said the company still reaches only about one-third of that market.
In Mexico, regulators approved Nu’s banking license earlier in the month. Vélez said the license enables capabilities including payroll direct deposits, higher deposit insurance, broader credit products and expansion into additional customer segments. Mexico ARPAC was $12.3 at a comparable stage of development, compared with $5.6 in Brazil, according to Vélez.
Nu said it broke even in Mexico after six years, compared with eight years in Brazil. Vélez said the company now reaches 16.5% of Mexico’s adult population and sees regulatory changes designed to simplify payment experiences as a potential driver of further digital-payment adoption.
AI, Workforce and U.S. Plans Vélez said Nu’s nuFormer artificial-intelligence platform is being deployed across underwriting, customer support, growth and optimization decisions. AI agents now handle more than 60% of customer-support conversations in Brazil, with customer ratings at or above human parity, he said.
The company said its newest nuFormer generation increased context length, training speed and inference speed while lowering production costs. Vélez said the platform can achieve the same predictive performance with 20 million fine-tuning data rows that previously required more than 400 million.
Nu ended the quarter with about 10,400 employees, slightly below the prior level following attrition tied to its return-to-office policy, Vélez said. He does not expect headcount to rise or decline significantly, but said AI could make employees two to five times more productive over the coming years.
On a future U.S. entry, Livingston said Nu expects the underlying platform and credit-risk expertise to transfer quickly, but building U.S.-specific data and confidence in lending models could take roughly 12 to 30 months. He said the company initially intends to test, learn and develop its data set rather than pursue rapid expansion.
About NU (NYSE:NU)Nu Holdings Ltd NYSE: NU, commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.
Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Nu Holdings Ltd. (NU - Free Report) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this company would post earnings of $0.2 per share when it actually produced earnings of $0.19, delivering a surprise of -5%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Nu , which belongs to the Zacks Banks - Foreign industry, posted revenues of $5.51 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.08%. This compares to year-ago revenues of $3.67 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Nu shares have lost about 19% since the beginning of the year versus the S&P 500's gain of 13.2%.
What's Next for Nu ?While Nu has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Nu was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $5.73 billion in revenues for the coming quarter and $0.83 on $22.42 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Banco Comercial Portugues S.A. Unsponsored ADR (BPCGY - Free Report) , has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -24%. The consensus EPS estimate for the quarter has been revised 4.4% higher over the last 30 days to the current level.
Banco Comercial Portugues S.A. Unsponsored ADR's revenues are expected to be $1.08 billion, up 116% from the year-ago quarter.
Brazilian digital lender Nubank's quarterly net profit surpassed $1 billion for the first time, beating analysts' estimates, and sending shares higher late on Thursday.
SÃO PAULO--(BUSINESS WIRE)--Nu Holdings Ltd. (NYSE: NU) (“Nu” or the “Company”), the largest digital bank in Latin America, today released its financial results for the second quarter ended June 30, 2026, prepared in accordance with IFRS, as well as complementary managerial results. The financial statements and earnings presentation are available on the Company’s Investor Relations website at www.investors.nu, along with details of the earnings conference call to be held today at 6:00 p.m. Eastern Time / 7:00 p.m. Brasília time.
"Thirteen years ago we started with a simple hypothesis: that a bank built on technology, with no branches and no legacy to defend, could serve hundreds of millions of people better, and at a fraction of the cost. This is no longer a hypothesis, and we are now generating more than a billion dollars in quarterly net income. Earlier this month, we launched our bank in Mexico, becoming the largest digital bank in the country with 16 million customers. That completes our transformation there, unlocking capabilities we did not have before. In Brazil, we are evolving our structure, adding a full banking license to our operations. We also launched Croma for our Super Core customers, taking the same primary banking playbook upmarket into an even larger profit pool. Underpinning all of it, NuFormer, our foundation model for financial behavior, now powers underwriting, customer service, and growth decisions across the company," says David Vélez, founder and global CEO of Nubank.
Q2’26 Results Snapshot
Below are the Q2’26 performance highlights of Nu Holdings Ltd. Unless otherwise noted, all the growth rates presented herein are on an FX neutral basis (FXN)1:
Operating Highlights:
Customer growth - Nu added approximately 4 million customers in Q2'26, reaching a total of 139 million customers globally. In Brazil, Nu reached almost 118 million customers. In Mexico, Nu reached 15.8 million customers (and 16 million as of July, 2026), and in Colombia, Nu surpassed 5 million customers, continuing its steady pace of net additions. Engagement and activity rates - ARPAC reached approximately $17 in Q2'26, growing sequentially quarter-over-quarter (QoQ) once again. Monthly activity rate expanded sequentially to 83.5%, with Brazil surpassing 86% for the first time. Efficiency Ratio - Efficiency Ratio increased to 19.5% in Q2'26 from 17.6% in Q1'26 (21.3% in Q2'25), as real estate and marketing expenses shifted from the first quarter into the second, alongside our continued investments in international expansion. Asset Quality - Leading indicator 15-90 NPL ratio improved 16 bps to 4.8% in Q2'26, with the majority of the improvement coming from seasonality, partially offset by intentional expansions into higher-risk, higher-return segments. Product mix and other minor effects were broadly neutral. 90+ NPLs increased 35 bps to 6.9%, largely reflecting the seasonal migration of first-quarter early delinquencies. Financial Highlights:
Revenue, Net Interest Income (NII) and Risk-adjusted NIM - Nu's Q2'26 gross revenue reached nearly $5.9 billion, up 39% YoY. NII reached $3.7 billion, up 9% QoQ, and Net Interest Margin expanded 180 bps to 22.9%, reflecting portfolio growth, the mix shift toward unsecured lending, and the intentional risk expansions communicated last quarter. Cost of Credit declined 9% QoQ to $1.7 billion, largely reflecting the normal second-quarter improvement in early delinquencies. As a result, Risk-adjusted NIM expanded 290 bps to 12.4%, from 9.5% in Q1'26. Profitability - Gross profit reached $2.4 billion, up 43% YoY and 25% QoQ. Credit's contribution to gross profit rose to 41% as it normalized in line with its expected seasonal pattern, with fees at 25% and float at 34% — all three growing in absolute dollars. Net Income reached $1.1 billion for the first time in Nubank's history, up 17% QoQ and 49% YoY. ROE closed the quarter at 33%. Balance Sheet and Funding - Total credit portfolio expanded 37% YoY and 5% QoQ to $39.4 billion, with credit cards at $26 billion, unsecured lending at $10.3 billion, and secured lending at $3.1 billion. Total deposits reached $45.3 billion, up 18% YoY and 6% QoQ, recovering Q1's seasonal outflows. Brazil closed at $36.4 billion, Mexico at $5.7 billion, and Colombia at $3.3 billion. In Mexico, deposits declined modestly again this quarter as part of a deliberate deposit-optimization strategy, improving cost of funding while maintaining ample liquidity, with Mexico's loan-to-deposit ratio at just 35%. Consolidated cost of deposits held at 88% of interbank rates, 3 p.p. lower than a year ago. Business highlights:
Deepening and Broadening Leadership in Brazil: Nu reached almost 118 million customers in Brazil, with the monthly activity rate surpassing 86% for the first time. Nu already serves most of the Mass Market segment and is the primary bank for a high share of those customers. It is also moving upmarket, where Ultravioleta continues to deepen primary banking relationships in the High Income segment. In July, Nu launched Croma for Super Core customers, offering a dedicated experience, enhanced credit, and broader benefits designed to reward customers for concentrating more of their financial lives with Nu. Beyond consumers, Nu serves more small businesses than any other financial institution in Brazil. Becoming Mexico's Largest Digital Bank: With its August launch, Nu became Mexico's largest digital bank, completing its shift from a credit-first fintech to a full-scale institution. Customer behavior, technology, and regulation are now all moving in the same direction: SPEI transfers below $5 grew more than 60% in the first half, while new central bank rules introduced in June, mandatory for all institutions by year-end, will standardize the payment experience across rails and strengthen network effects. Nu reaches 16.5% of Mexico's adult population, comparable to Brazil in 2020, but cohorts monetize earlier, with ARPAC of $12.3 against $5.6 in Brazil at the same stage. Taken together, these forces create one of the most compelling opportunities Nu has seen in Mexico. Scaling NuFormer and Broadening AI Across the Business: Nu continues to advance NuFormer, its foundation model for financial behavior, building on one of its greatest advantages: over a decade of transaction history across more than 100 million customers. The latest generation quadrupled context length, training speed, and inference speed, while reducing the cost of running models in production. NuFormer is in production across three portfolios — credit cards in Brazil and Mexico, and unsecured lending in Brazil — with SME and Colombian cards now in testing. Beyond underwriting, AI agents handle more than 60% of customer support conversations in Brazil at or above human parity, and Nu is using AI to optimize decisions across credit, deposits, and growth. Credit as a Superpower, Underpinned by Customer Primacy: Nu leads the Brazilian market in Primary Banking Relationships (PBR), and that leadership, combined with the analytical rigor of its underwriting models and the quality of the data those relationships generate, creates a structural credit edge. Credit performance has been steady across every income band, with 90+ delinquency improving in each since July 2025 while the peer bank segments deteriorated, and the widest differentiation in Mass Market and Super Core. Customers with Nu as their PBR show delinquency roughly half the portfolio average, reinforcing that customer primacy is both a growth and a credit advantage. More News From Nu Holdings Ltd.
Brazil-based digital banking platform Nu Holdings (NU -0.66%) reports its second-quarter earnings tomorrow after the market closes. While investors will closely watch for revenue and earnings beats, a few catalysts could truly send the stock soaring.
Serving Latin America, across Brazil, Mexico, and Colombia, the company has over 135 million customers with no signs of a slowdown in growth. Nu added 17 million customers in 2025 and has continued in a similar vein this year, gaining another four million customers in the first quarter.
Yet these numbers don’t necessarily impress markets. It’s the catalysts behind these growth numbers that hold the clue to how the stock will respond.
Here are three major catalysts that could send the stock soaring on Friday and beyond.
Image source: The Motley Fool.
1. Mexico en route to becoming the next BrazilOf the 135 million customers, more than 115 million are from Brazil. Mexico operations, on the other hand, are growing. Crossing 15 million customers in the first quarter, Nu became Mexico’s third-largest financial institution and is also the country’s fastest-growing credit card issuer. Importantly, Nu’s Mexican customer base has grown nearly seven times over the past four years.
If management gives any indication that Mexico is scaling faster than Brazil, the market will discount this into Nu Holding’s valuation. However, investors should closely monitor increases in deposits and loan disbursements.
At the end of the day, a bank’s business is essentially a spread business. It takes in low-cost deposits and lends them out to high-quality, credit-worthy borrowers at higher interest rates.
Additionally, Colombia, with five million customers, is also scaling up. While growth here may not necessarily move the overall needle much, investors may eventually see this market’s long-term value.
Yet, growth for growth’s sake won’t impress the stock market. As a large-scale lender, Nu’s credit expansion must be accompanied by profit growth. And that leads us to our next catalyst.
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2. Better than expected credit qualityThe market’s greatest worry has been that Nu Holding’s rapid lending growth could result in higher losses. It isn’t surprising that the stock is down 20% this year. In the first quarter, the credit loss allowance rose 33% from the fourth quarter of 2025 to $1.79 billion, partly driven by portfolio growth.
The company’s primary credit quality indicator, its 15- to 90-day loan portfolio’s non-performing loan (NPL) ratio, was up 89 basis points (bps) from the previous quarter. Management attributed the worsening performance to seasonality, but the market seems wary. The good news is the 90+ NPL ratio declined 10 bps, to 6.5%.
While Q1 net profit grew 56% year-over-year, it came in slightly below the previous quarter’s bottom line. Assuming management’s “seasonality” argument is correct, if the second-quarter 15-90 NPL ratio falls more than expected while 90+ NPL remains stable, expect a solid boost in the stock price.
Simultaneously, investors will be watching for improvements in Nu’s net interest margin (NIM), which, on a risk-adjusted basis, should exceed the 9.5% it reported in Q1. In layman’s terms, net interest margin indicates the difference between a lender’s interest income and interest expense as a ratio of its average earning assets for the quarter. The higher the margin, the more profitable the lender.
The stock market will essentially read the two signals as those of a lending business that can grow without being burned by credit losses.
3. Growing average revenue per customerThis is probably not a highly appreciated metric. But investors evaluating Nu Holdings’ long-term prospects will want to assess the digital bank’s trajectory by its monthly average revenue per active customer (ARPAC).
A growing ARPAC is insurance against slowing or even decreasing volume growth. Nu Holding doesn’t necessarily have to acquire large volumes of customers. Instead, it’s increasingly focused on increasing average revenue per customer.
For example, around 62% of Brazil’s adults already use its services, meaning that future volume-driven growth will inevitably slow in Nu’s primary market.
The company has meaningfully increased its ARPAC from $11.6 per customer in Q1 2025 to $15.9 per customer in Q1 2026, a 37% year-on-year increase. As a result, it successfully reduced its efficiency ratio from 21.4% to 17.6% over the same period.
Can Nu Holding continue this trend? That remains to be seen, but there are solid indications that management is putting serious work into reducing its operating leverage.
A multi-expansion storyNu Holdings is a multi-expansion story that has the ability to pull multiple levers for growth. However, these catalysts should work in tandem, given the macroeconomic uncertainty.
In addition, a surprise announcement about definite development in its U.S. expansion plans could drive the stock higher. Earlier this year, Nu Holdings received conditional approval from U.S. regulators for a national bank charter.
While beating the consensus EPS estimate of $0.19 will be important tomorrow, look for unexpected gains in these catalysts to drive the stock higher.
NU (NYSE:NU – Get Free Report) is expected to post its Q2 2026 results after the market closes on Thursday, August 13th. Analysts expect NU to post earnings of $0.1984 per share and revenue of $5.3858 billion for the quarter. Individuals can find conference call details on the company’s upcoming Q2 2026 earning report page for the latest details on the call scheduled for Thursday, August 13, 2026 at 6:00 PM ET.
NU (NYSE:NU – Get Free Report) last announced its quarterly earnings results on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.01). NU had a net margin of 18.20% and a return on equity of 30.91%. The company had revenue of $5.32 billion for the quarter, compared to the consensus estimate of $5.06 billion. On average, analysts expect NU to post $1 EPS for the current fiscal year and $1 EPS for the next fiscal year.
NU Price Performance NU stock opened at $13.65 on Wednesday. The firm has a 50 day moving average of $13.37 and a 200-day moving average of $14.43. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36. NU has a 12 month low of $11.20 and a 12 month high of $18.98. The firm has a market capitalization of $66.27 billion, a P/E ratio of 21.00, a price-to-earnings-growth ratio of 0.55 and a beta of 0.94.
NU announced that its board has authorized a share buyback program on Thursday, June 4th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.
Analysts Set New Price Targets Several analysts have issued reports on the stock. UBS Group lowered their target price on shares of NU from $18.10 to $16.90 and set a “buy” rating on the stock in a research note on Wednesday, May 20th. JPMorgan Chase & Co. boosted their price target on shares of NU from $18.00 to $20.00 and gave the company an “overweight” rating in a research report on Tuesday, July 7th. Needham & Company LLC began coverage on NU in a research report on Friday, June 26th. They issued a “buy” rating and a $17.00 price objective on the stock. Scotiabank lowered NU to a “sector perform” rating and set a $13.00 price objective for the company. in a research note on Wednesday, June 3rd. Finally, CICC Research assumed coverage on NU in a research report on Tuesday, April 14th. They set an “outperform” rating and a $18.00 target price for the company. Ten analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $17.24.
Check Out Our Latest Research Report on NU
Insider Buying and Selling In other news, Director Anita M. Sands sold 21,000 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $12.24, for a total value of $257,040.00. Following the transaction, the director owned 162,150 shares of the company’s stock, valued at $1,984,716. This represents a 11.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.
Institutional Inflows and Outflows Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC boosted its holdings in shares of NU by 3.7% during the 4th quarter. Parallel Advisors LLC now owns 16,820 shares of the company’s stock worth $282,000 after purchasing an additional 601 shares during the last quarter. Aptus Capital Advisors LLC increased its holdings in shares of NU by 3.4% in the fourth quarter. Aptus Capital Advisors LLC now owns 19,008 shares of the company’s stock valued at $318,000 after purchasing an additional 624 shares during the last quarter. Polymer Capital Management US LLC increased its holdings in shares of NU by 5.7% in the fourth quarter. Polymer Capital Management US LLC now owns 16,892 shares of the company’s stock valued at $283,000 after purchasing an additional 904 shares during the last quarter. United Capital Financial Advisors LLC lifted its position in NU by 7.3% during the third quarter. United Capital Financial Advisors LLC now owns 13,629 shares of the company’s stock worth $218,000 after buying an additional 929 shares in the last quarter. Finally, Williams Jones Wealth Management LLC. lifted its position in NU by 2.0% during the fourth quarter. Williams Jones Wealth Management LLC. now owns 50,755 shares of the company’s stock worth $850,000 after buying an additional 1,005 shares in the last quarter. 84.02% of the stock is currently owned by hedge funds and other institutional investors.
About NU (Get Free Report)
Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.
Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.
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Nu Holdings (NU -2.27%) is scheduled to report second-quarter earnings on Aug. 13 after the market closes. Expectations are high.
Wall Street analysts expect Nu to report quarterly sales growth of 49%. Earnings are expected to come in at $0.19 per share, though estimates range from $0.16 to $0.21 per share. Last year, second-quarter earnings totaled $0.12 per share.
Expectations for Nu’s sales and profit growth have been high for years. The fintech stock has rapidly grown its user base across Brazil, Mexico, and Colombia. More than half of all Brazilian adults are Nu customers. And roughly 15% of Mexican adults are now Nu customers, even though the company only entered that market in 2019.
Looking ahead, analysts expect 2026 sales growth of around 41%, with 2027 sales growth of 22%. Earnings per share for 2026 are expected to be $0.58, with 2027 EPS projected to be $0.81.
Despite rosy growth expectations, Nu stock is down 19% year-to-date. And while earnings aren’t necessarily the best metric to judge a bank stock by, shares trade at just 21 times trailing earnings and less than 17 times forward earnings.
If Nu announces strong earnings, shares could pop. And there’s one catalyst I’ll be paying most attention to.
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Can Nu Holdings stave off rising competition?Nu has an incredible growth history. Seismic growth was largely made possible by weak competition. When Nu launched in 2013, its competition in Brazil — its first market — consisted mostly of stodgy incumbents that charged customers high fees for relatively simple services. These incumbents had sprawling physical branch infrastructure and thus a high cost base.
Nu was founded as a digital-first bank. It has no branches. Instead, customers access their financial services directly from a smartphone. This allowed Nu to acquire customers faster and more cheaply than the competition could afford.
Image source: Getty Images
It took Nu a little over a decade to capture 100 million customers. And the competition took notice. Other fintech operators are growing quickly across Latin America, and analysts are increasingly concerned that Nu’s core markets have already reached saturation. Fears of market saturation and rising competition are arguably the biggest weight on shares, despite impressive top- and bottom-line growth.
But here’s the thing: Nu has proven an ability to stave off the competition on the metrics that matter most.
Nu’s monthly average cost to serve per active customer — a metric that tracks how expensive it is for the company to serve a customer — has remained around $0.80 per customer for the past five years. This proves that Nu’s cost advantage over the competition is structural and durable.
Nu has also demonstrated impressive underwriting discipline. Mercado Pago, perhaps its biggest fintech competitor, has stolen customers at the cost of sacrificing margins. Nu, meanwhile, has been able to add customers while maintaining or even growing profitability.
Despite repeated evidence of its business moat, the market remains skeptical of Nu’s ability to fend off competition in the long term. I expect another positive earnings report. But whether the market rewards continued progress remains to be seen. Whether or not shares pop after second-quarter earnings is anyone’s guess. But if shares remain pressured, patient growth investors looking to buy into a long-term growth story at a discount should take a closer look.
On June 30, 2026, Baillie Gifford (Trades, Portfolio) executed a reduction of 16,634,123 shares in Nu Holdings Ltd (NYSE: NU), representing a -6.75% change in th
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Warren Buffett famously said 35 years ago that value investing and growth investing are "joined at the hip." A stock with a price-to-earnings ratio (P/E) of 5 may actually be expensive because of its deteriorating business, while one with a P/E of 50 may be cheap because of upcoming years of hypergrowth.
One financial technology company that has historically traded at a premium earnings multiple is Nu Holdings (NU -1.31%). It trades at a high P/E ratio compared to its consumer banking competition but is growing earnings at a rapid clip.
Does it still deserve a growth multiple? Here's why now might be a perfect time to buy Nu Bank stock.
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Massive user base Nu Holdings is the parent company of Nu Bank, a consumer banking application that has taken Latin America by storm --specifically, in the three largest countries by population: Brazil, Mexico, and Colombia.
Management and founder David Velez's strategy was simple. Use the fact that the average bank in these countries drowns customers with high fees, long in-person visits, and predatory loan products to build something much superior. Nu Bank is a bank that customers can easily manage on their mobile devices, offering services such as credit cards and consumer loans with value propositions that vastly improve on those of legacy institutions.
It is this mousetrap of treating your customers better that has led 135 million people to sign up for a Nu Bank product across its three operating countries. Within these markets, average revenue per active customer just hit $16, up from $7 in the same period in 2022. Nu Bank is not only attracting new customers but also increasing usage over time.
This is why revenue is up 170% in the last three years, with a positive earnings inflection for a company that came to the public markets unprofitable. Net income was up 41% year over year last quarter and $3.2 billion over the last 12 months.
Image source: Nu Holdings.
Why Nu Holdings' stock deserves its high earnings multiple Nu Holdings trades at a P/E ratio of 22, which is higher than most banking stocks. Banks tend to trade at lower earnings multiples due to the inherent cyclicality of the lending business, which Nu Bank is not immune to.
However, Nu Bank has a much better growth runway ahead than the average bank, in both revenue and earnings. If it keeps doing what it's doing with adding new users and expanding revenue per user, total revenue will likely double within a few years, with net income growing faster. This makes the stock cheap even though it trades at a high P/E ratio for a bank.
In the latest close session, Nu Holdings Ltd. (NU - Free Report) was up +1.05% at $14.48. This change outpaced the S&P 500's 0.17% loss on the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq lost 0.83%.
The company's stock has climbed by 5.29% in the past month, exceeding the Finance sector's gain of 2.97% and the S&P 500's gain of 3.52%.
The upcoming earnings release of Nu Holdings Ltd. will be of great interest to investors. The company is predicted to post an EPS of $0.2, indicating a 42.86% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.45 billion, showing a 48.68% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.83 per share and a revenue of $22.42 billion, representing changes of +33.87% and +42.13%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nu Holdings Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Nu Holdings Ltd. is currently a Zacks Rank #4 (Sell).
Looking at valuation, Nu Holdings Ltd. is presently trading at a Forward P/E ratio of 17.18. This expresses a premium compared to the average Forward P/E of 12.41 of its industry.
It's also important to note that NU currently trades at a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Banks - Foreign industry stood at 0.91 at the close of the market yesterday.
The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 108, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Key Takeaways SoFi's broader revenue mix and stronger cross-buying make it the better-balanced digital banking stock.Nu's 135 million-plus customers drive scale, but unsecured credit and Latin America exposure raise risk.SoFi gets 39% of quarterly revenues from fees, while its total capital ratio stands at 18.8%. Nu Holdings Ltd. (NU - Free Report) and SoFi Technologies, Inc. (SOFI - Free Report) are often grouped as digital banking disruptors. Both operate digital-first financial platforms offering banking, lending and other financial services, with Nu focused on Latin America and SoFi primarily serving the U.S. market.
Specifically, Nu is the larger customer platform, with deep roots in Brazil and expanding banking operations in Mexico and Colombia. SoFi is smaller by membership, yet it combines a U.S. digital bank, lending engine, investment platform and financial technology business under one brand.
Nu offers scale, strong engagement and low operating costs, but it also carries heavier exposure to unsecured consumer credit and Latin American economic swings. SoFi faces its own risks, especially from lending concentration and execution across many new products, though its revenue mix is becoming broader.
The key question is not which company is growing faster in one quarter. It is which model offers the better balance of growth, credit quality, diversification and risk. Looking at those points side by side gives investors a clearer way to judge both stocks.
The Case for NUNu’s scale is impressive, but scale alone does not remove risk. The company has more than 135 million customers, with more than 115 million in Brazil and 15 million in Mexico. That reach supports strong revenue growth, yet it also makes Nu increasingly tied to consumer conditions in a few Latin American markets.
The main concern is credit mix. Nu’s total exposure rose sharply, while 98% of new exposure came from credit cards and unsecured loans. Those products earn high yields, but they also require larger upfront provisions and can weaken quickly when household finances come under pressure. SoFi also relies on personal lending, but its borrowers generally sit in a different income and credit profile.
Nu’s first-quarter risk-adjusted net interest margin fell to 9.5% from 10.5%. Management said seasonality, growth and mix drove the move rather than broad credit deterioration. However, faster expansion can create noisier provisions and less predictable earnings.
International growth adds another layer of uncertainty. Mexico is now profitable and will operate as a bank, while Brazil’s new license supports its existing structure. Still, building deeper banking operations requires regulatory work, deposits, underwriting discipline and local execution.
Nu is also spending on artificial intelligence and a measured U.S. expansion. Those efforts may help over time, but they raise the number of moving parts. Compared with SoFi’s more mature U.S. regulatory base, Nu’s geographic concentration and unsecured credit exposure leave less room for error at this point.
The Case for SOFISoFi has a broader product mix. The company now serves 15.8 million members across banking, lending, investing, credit cards, insurance referrals and technology services. The base is far smaller than Nu’s, but SoFi is showing that members are adding more products, which can lower acquisition costs and deepen relationships.
The solid evidence is cross-buying. In the latest quarter, 51% of new products were opened by existing members, up from 35% a year earlier. SoFi Plus, SoFi Coach, investing tools, small-business loans and business banking are designed to keep more activity inside one platform. Nu is also expanding beyond basic banking, but SoFi currently offers a wider U.S. product set.
Lending remains central, so the story is not risk-free. Personal loans produced most lending volume, and balance sheet growth helped support revenues. Still, SoFi reported improving personal-loan charge-offs, a 40-basis-point 90-day delinquency rate and a total capital ratio of 18.8%, well above the regulatory minimum.
Revenue quality is also improving. Fee-based revenues reached 39% of quarterly revenues, while Financial Services and Technology Platform revenues together represented 46% of adjusted net revenues. The technology segment has not grown smoothly, but loan-platform partnerships, brokerage fees, interchange and subscriptions reduce dependence on net interest income.
Compared with Nu, SoFi lacks the same customer scale and faces intense U.S. competition. Yet, its deposit base, capital position, improving cross-buy and expanding fee streams create a more balanced setup. The outlook is promising, though execution across many launches still deserves close attention.
How Do Estimates Compare for NU & SOFI?The Zacks Consensus Estimate for Nu’s 2026 and 2027 sales implies year-over-year growth of 42.13% and 24.33%, respectively. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 33.87% and 38.07%, respectively. Over the past 60 days, estimates for Nu’s 2026 EPS has been revised southward, while that for 2027 has remained unchanged.
For Nu Holdings:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SoFi Technologies’ 2026 and 2027 sales calls for year-over-year growth of 35.55% and 17.05%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised marginally upward over the past 60 days. The figures suggest a year-over-year increase of 53.85% and 34.45%, respectively.
For SoFi Technologies:
Image Source: Zacks Investment Research
Price Performance and Valuation of NU & SOFISo far in the year, Nu shares have declined 13.4%, while SoFi Technologies shares have plunged 37.1%. In comparison, the S&P 500 composite has advanced 8.2% in the same time frame.
Image Source: Zacks Investment Research
NU is trading at a forward 12-month price-to-earnings of 14.24X, which is below its one-year median of 18.82X.
Meanwhile, SOFI is presently trading at a forward 12-month price-to-earnings of 23.17X, which is well below its one-year median of 40.06X.
However, the lower multiple does not automatically make Nu a safer option. Its earnings depend on Latin American credit conditions, unsecured lending, and execution in Brazil and Mexico. SoFi’s higher multiple requires member growth, cross-buying and margin expansion.
Image Source: Zacks Investment Research
ConclusionNu remains a digital banking operator, but its risk profile looks less comfortable now. Heavy exposure to unsecured consumer credit, concentration in Latin America and added spending on expansion could make results more uneven, even with robust scale and efficiency.
SoFi is not a low-risk choice. Its lending business, product launches and technology platform require careful execution. Yet, the company has a broader revenue mix, growing fee income, strong capital and better evidence that members are using multiple services. For investors choosing between the two, SoFi is in a position to be kept, while Nu is the clearer one to exit.
While SOFI carries a Zacks Rank #3 (Hold), NU has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nu Holdings Ltd. (NU - Free Report) ended the recent trading session at $14.04, demonstrating a -4.36% change from the preceding day's closing price. This change lagged the S&P 500's 1.52% loss on the day. On the other hand, the Dow registered a loss of 2.19%, and the technology-centric Nasdaq decreased by 1.74%.
Coming into today, shares of the company had gained 9.88% in the past month. In that same time, the Finance sector gained 3.88%, while the S&P 500 gained 1.92%.
Investors will be eagerly watching for the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. On that day, Nu Holdings Ltd. is projected to report earnings of $0.2 per share, which would represent year-over-year growth of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $5.45 billion, up 48.68% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.83 per share and a revenue of $22.42 billion, representing changes of +33.87% and +42.13%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nu Holdings Ltd. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Nu Holdings Ltd. boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Nu Holdings Ltd. is currently exchanging hands at a Forward P/E ratio of 17.6. This indicates a premium in contrast to its industry's Forward P/E of 11.98.
Also, we should mention that NU has a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Foreign was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Nu Holdings Ltd. (NU - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned +10.7%, compared to the Zacks S&P 500 composite's +1.7% change. During this period, the Zacks Banks - Foreign industry, which Nu falls in, has gained 6.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Nu is expected to post earnings of $0.20 per share for the current quarter, representing a year-over-year change of +42.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $0.83 points to a change of +33.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $1.15 indicates a change of +38.1% from what Nu is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Nu .
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Nu , the consensus sales estimate for the current quarter of $5.45 billion indicates a year-over-year change of +48.7%. For the current and next fiscal years, $22.42 billion and $27.87 billion estimates indicate +42.1% and +24.3% changes, respectively.
Last Reported Results and Surprise HistoryNu reported revenues of $4.97 billion in the last reported quarter, representing a year-over-year change of +53%. EPS of $0.19 for the same period compares with $0.12 a year ago.
Compared to the Zacks Consensus Estimate of $4.97 billion, the reported revenues represent a surprise of -0.01%. The EPS surprise was -5%.
Over the last four quarters, Nu surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Nu is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nu . However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Dynamo Internacional Gestao DE Recursos LTDA. boosted its holdings in shares of Nu Holdings Ltd. (NYSE:NU – Free Report) by 676.2% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 5,517,125 shares of the company’s stock after acquiring an additional 4,806,348 shares during the quarter. NU makes up approximately 27.2% of Dynamo Internacional Gestao DE Recursos LTDA.’s portfolio, making the stock its 2nd largest holding. Dynamo Internacional Gestao DE Recursos LTDA. owned 0.11% of NU worth $79,281,000 at the end of the most recent quarter.
Other institutional investors have also recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd increased its stake in shares of NU by 14,810.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company’s stock worth $25,000 after purchasing an additional 1,481 shares during the last quarter. LOM Asset Management Ltd acquired a new stake in shares of NU in the 4th quarter valued at $25,000. Zions Bancorporation National Association UT acquired a new stake in shares of NU in the 4th quarter valued at $27,000. Cornerstone Planning Group LLC boosted its holdings in NU by 5,448.3% in the fourth quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company’s stock worth $27,000 after purchasing an additional 1,580 shares in the last quarter. Finally, Morse Asset Management Inc bought a new stake in NU in the fourth quarter worth $31,000. 84.02% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades Several equities analysts have weighed in on the company. JPMorgan Chase & Co. raised their target price on NU from $18.00 to $20.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Weiss Ratings downgraded NU from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, May 13th. Scotiabank lowered NU to a “sector perform” rating and set a $13.00 price objective on the stock. in a report on Wednesday, June 3rd. Needham & Company LLC initiated coverage on NU in a research note on Friday, June 26th. They issued a “buy” rating and a $17.00 price objective on the stock. Finally, Bank of America restated an “underperform” rating on shares of NU in a report on Tuesday, June 2nd. Ten research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $17.24.
Get Our Latest Research Report on NU
NU Stock Performance NYSE:NU opened at $14.49 on Tuesday. The firm has a market capitalization of $70.34 billion, a PE ratio of 22.29, a PEG ratio of 0.56 and a beta of 0.95. Nu Holdings Ltd. has a 1 year low of $11.20 and a 1 year high of $18.98. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36. The firm’s fifty day simple moving average is $13.06 and its 200 day simple moving average is $14.65.
NU (NYSE:NU – Get Free Report) last released its earnings results on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.01). NU had a return on equity of 30.91% and a net margin of 18.20%.The firm had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.06 billion. On average, sell-side analysts anticipate that Nu Holdings Ltd. will post 0.83 EPS for the current year.
NU announced that its board has initiated a share buyback plan on Thursday, June 4th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.
Insider Activity at NU In other news, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $12.24, for a total value of $257,040.00. Following the transaction, the director directly owned 162,150 shares in the company, valued at approximately $1,984,716. The trade was a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink.
About NU (Free Report)
Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.
Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.
See Also Five stocks we like better than NU AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight Want to see what other hedge funds are holding NU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Nu Holdings Ltd. (NYSE:NU – Free Report).
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ABS Direct Equity Fund LLC purchased a new stake in Nu Holdings Ltd. (NYSE:NU – Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 247,700 shares of the company’s stock, valued at approximately $3,507,000. NU accounts for 2.7% of ABS Direct Equity Fund LLC’s investment portfolio, making the stock its 11th biggest holding.
A number of other hedge funds also recently made changes to their positions in NU. Maxi Investments CY Ltd lifted its holdings in shares of NU by 85.5% in the fourth quarter. Maxi Investments CY Ltd now owns 783,000 shares of the company’s stock valued at $13,107,000 after buying an additional 361,000 shares during the period. C WorldWide Group Holding A S boosted its stake in NU by 1,045.3% during the fourth quarter. C WorldWide Group Holding A S now owns 311,792 shares of the company’s stock valued at $5,219,000 after buying an additional 284,569 shares in the last quarter. Vanguard Group Inc. grew its holdings in NU by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 24,814,878 shares of the company’s stock worth $415,401,000 after acquiring an additional 1,037,438 shares during the period. Genoa Capital Gestora de Recursos Ltda. acquired a new position in NU during the fourth quarter worth about $3,869,000. Finally, Danske Bank A S lifted its holdings in NU by 515.0% in the 4th quarter. Danske Bank A S now owns 5,074,732 shares of the company’s stock valued at $84,951,000 after acquiring an additional 4,249,632 shares during the last quarter. Institutional investors own 84.02% of the company’s stock.
Insider Activity at NU In other news, Director Anita M. Sands sold 21,000 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $12.24, for a total transaction of $257,040.00. Following the transaction, the director owned 162,150 shares in the company, valued at $1,984,716. This represents a 11.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.
NU Stock Up 0.2% NU stock opened at $14.12 on Monday. The company has a 50 day moving average of $13.02 and a two-hundred day moving average of $14.67. The company has a market cap of $68.54 billion, a price-to-earnings ratio of 21.72, a PEG ratio of 0.56 and a beta of 0.95. Nu Holdings Ltd. has a 12-month low of $11.20 and a 12-month high of $18.98. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36.
NU (NYSE:NU – Get Free Report) last posted its quarterly earnings results on Friday, May 15th. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.01). NU had a net margin of 18.20% and a return on equity of 30.91%. The company had revenue of $5.32 billion for the quarter, compared to analysts’ expectations of $5.06 billion. On average, equities analysts anticipate that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.
NU declared that its Board of Directors has approved a stock repurchase plan on Thursday, June 4th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.
Wall Street Analysts Forecast Growth Several brokerages have recently issued reports on NU. JPMorgan Chase & Co. lifted their price objective on shares of NU from $18.00 to $20.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. CICC Research began coverage on shares of NU in a research note on Tuesday, April 14th. They set an “outperform” rating and a $18.00 target price for the company. Bank of America restated an “underperform” rating on shares of NU in a report on Tuesday, June 2nd. Needham & Company LLC initiated coverage on shares of NU in a research report on Friday, June 26th. They issued a “buy” rating and a $17.00 price target on the stock. Finally, Weiss Ratings cut NU from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, May 13th. Ten equities 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 stock. Based on data from MarketBeat.com, NU currently has a consensus rating of “Moderate Buy” and a consensus price target of $17.24.
View Our Latest Research Report on NU
About NU (Free Report)
Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.
Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.
Read More Five stocks we like better than NU RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding NU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Nu Holdings Ltd. (NYSE:NU – Free Report).
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Arrowstreet Capital Limited Partnership trimmed its holdings in shares of Nu Holdings Ltd. (NYSE:NU – Free Report) by 47.7% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 14,802,391 shares of the company’s stock after selling 13,507,693 shares during the quarter. Arrowstreet Capital Limited Partnership owned 0.30% of NU worth $212,710,000 as of its most recent filing with the SEC.
Several other institutional investors also recently made changes to their positions in NU. Norges Bank bought a new position in NU in the 4th quarter worth approximately $763,792,000. Larch Capital Partners LLC bought a new position in shares of NU in the fourth quarter valued at approximately $605,829,000. Jennison Associates LLC grew its holdings in shares of NU by 82.6% during the 4th quarter. Jennison Associates LLC now owns 39,370,791 shares of the company’s stock worth $659,067,000 after purchasing an additional 17,809,644 shares in the last quarter. Atmos Capital Gestao DE Recursos LTDA. lifted its holdings in NU by 109.1% during the 4th quarter. Atmos Capital Gestao DE Recursos LTDA. now owns 29,813,810 shares of the company’s stock valued at $499,083,000 after purchasing an additional 15,552,726 shares during the last quarter. Finally, Marshall Wace LLP boosted its holdings in NU by 98.4% in the third quarter. Marshall Wace LLP now owns 29,141,505 shares of the company’s stock valued at $466,555,000 after acquiring an additional 14,449,834 shares during the last quarter. 84.02% of the stock is owned by institutional investors.
NU Stock Performance NU opened at $14.12 on Friday. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36. The company’s 50 day moving average is $13.02 and its 200 day moving average is $14.69. The company has a market cap of $68.54 billion, a price-to-earnings ratio of 21.72, a PEG ratio of 0.57 and a beta of 0.95. Nu Holdings Ltd. has a 12-month low of $11.20 and a 12-month high of $18.98.
NU (NYSE:NU – Get Free Report) last issued its earnings results on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.01). The firm had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.06 billion. NU had a return on equity of 30.91% and a net margin of 18.20%. On average, equities research analysts predict that Nu Holdings Ltd. will post 0.83 EPS for the current year.
NU declared that its Board of Directors has approved a share buyback plan on Thursday, June 4th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.
Insiders Place Their Bets In other NU news, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $12.24, for a total value of $257,040.00. Following the sale, the director owned 162,150 shares of the company’s stock, valued at $1,984,716. The trade was a 11.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 1.20% of the stock is owned by corporate insiders.
Analyst Upgrades and Downgrades A number of brokerages recently issued reports on NU. Needham & Company LLC started coverage on NU in a research report on Friday, June 26th. They issued a “buy” rating and a $17.00 target price on the stock. Scotiabank cut shares of NU to a “sector perform” rating and set a $13.00 price objective on the stock. in a research note on Wednesday, June 3rd. Bank of America reissued an “underperform” rating on shares of NU in a research report on Tuesday, June 2nd. JPMorgan Chase & Co. increased their price target on NU from $18.00 to $20.00 and gave the company an “overweight” rating in a research report on Tuesday, July 7th. Finally, CICC Research started coverage on shares of NU in a research report on Tuesday, April 14th. They issued an “outperform” rating and a $18.00 price objective for the company. Ten research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $17.24.
Check Out Our Latest Report on NU
About NU (Free Report)
Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.
Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.
Further Reading Five stocks we like better than NU AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits Want to see what other hedge funds are holding NU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Nu Holdings Ltd. (NYSE:NU – Free Report).
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Over the three years leading up to their peak, shares in Nu Holdings (NU -0.53%) skyrocketed 329%. Since hitting that all-time high, however, they have fallen 24% (as of July 23). This drop could have been caused by a number of factors, such as a worry that growth will slow, macroeconomic factors, or a leadership change, all of which weakened market sentiment.
Opportunistic investors will take the time to figure out if this fintech stock is a worthy buy on the dip. Is it time to invest $3,000 in Nu, which will get you about 211 shares at the current price? The evidence is clear on what to do.
Image source: Getty Images.
Driving profitable growth while building a moat One of Nu's notable features is that it continues to report surging growth. During the first quarter (ended March 31), revenue jumped 42% year over year to $5.3 billion. The customer base, now at 135 million, increased 14% compared to Q1 2025.
Additionally, Nu's monthly average revenue per active customer was $15.90 in the first quarter. That figure rose 23% year over year on a currency-neutral basis.
This has propelled profitability for the business. Nu's diluted earnings per share soared 44.9% between 2024 and 2025. And over the following three years, consensus analyst estimates call for this bottom-line figure to grow at a compound annual rate of 35%.
Because the business doesn't operate any physical bank branches, it can run a leaner model that can capture cost advantages as it scales up. What's more, like other banks, Nu's ability to cross-sell financial products can drive higher switching costs for customers. At the end of 2024, the average customer used 4.1 different offerings, with newer cohorts ramping up quickly.
Today's Change
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Current Price
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There's value at today's price The best investors understand that high-quality companies are rare. These investors have also figured out that it's even harder to spot these kinds of opportunities at attractive valuations. That's why now is a great time to invest $3,000 in this fintech stock.
Nu currently trades at a forward price-to-earnings (P/E) ratio of 20.2. The market is offering shares in this company at a small discount to the overall S&P 500 index. This valuation disparity might not last very long.
As mentioned, Nu's growth has been excellent. And there are signs it's building durable competitive advantages. This is clearly a business deserving of a higher forward P/E multiple, which introduces another potential tailwind for investors. Of course, management has to continue executing well.
If you have a holding period of five years, then you should consider buying Nu stock. It's positioned to be a winner.
Nu Holdings Ltd. (NU - Free Report) closed the most recent trading day at $14.19, moving -2.21% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.21%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.15%.
The company's shares have seen an increase of 16.45% over the last month, surpassing the Finance sector's gain of 2.12% and the S&P 500's gain of 0.42%.
Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. In that report, analysts expect Nu Holdings Ltd. to post earnings of $0.2 per share. This would mark year-over-year growth of 42.86%. At the same time, our most recent consensus estimate is projecting a revenue of $5.45 billion, reflecting a 48.68% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.83 per share and a revenue of $22.42 billion, indicating changes of +33.87% and +42.13%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nu Holdings Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nu Holdings Ltd. currently has a Zacks Rank of #4 (Sell).
Investors should also note Nu Holdings Ltd.'s current valuation metrics, including its Forward P/E ratio of 17.4. This expresses a premium compared to the average Forward P/E of 12.12 of its industry.
We can additionally observe that NU currently boasts a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Foreign industry currently had an average PEG ratio of 0.88 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Nubank plans to secure a Brazilian banking license through its acquisition of Banco Porto Real de Investimentos, a bank that extends credit to wholesale clients, the company said in a Monday (July 20) press release.
The acquisition is subject to approval by Brazil’s central bank, according to the release.
Once the acquisition is complete, Nubank will add Banco Porto Real’s banking license to the other licenses under which it already operates. Those include Payment Institution; Credit, Financing and Investment Company; and Securities Brokerage Company licenses, per the release.
Nubank said in December 2025 that it planned to obtain a banking license in Brazil in 2026 to comply with a new rule issued by Brazil’s central bank and National Monetary Council.
It was reported at the time that the new rule prevents nonbank companies from using the word “bank” in their brands.
Nubank’s digital financial services platform serves 135 million customers across Brazil, Mexico and Colombia, according to its website. In Brazil alone, it serves 115 million, per the Monday press release.
Nubank’s customers in Brazil will see no changes, as the company’s app, products, services, brand and institution name will remain the same, the release said.
“Brazil is where Nubank was born, grew and proved that fairer, simpler financial services are possible at scale,” David Vélez, founder and global CEO of Nubank, said in the release. “Thirteen years later, it remains our main focus, a market where we can still signficantly expand our share and continue driving the transformation of the sector.”
Livia Chanes, Nubank Latam CEO, said in the release: “Our DNA of innovation remains intact, and we are committed to deepening our relationship with every customer, offering more solutions with the same simplicity that has always defined us.”
Nubank announced in a July 15 press release that it named Chanes CEO for Latin America. This move expanded Chanes’ role at the company, where she already held, and continues to hold, the position of CEO of Nubank Brazil.
Vélez said in the release that after Nubank validated its business model in Brazil, unifying the region under Chanes’ leadership is a natural next step.
“The same barriers that limited financial inclusion in Brazil still persist across Latin America,” Vélez said. “Now we have the tools, the team and the track record needed to overcome them faster.”
Nubank announced July 10 that its Mexican operation, Nu Mexico, received authorization to begin operations as a bank and now has 30 calendar days to complete its transformation into a bank.
Key Takeaways NU agreed to acquire a Brazilian bank license, strengthening its local operations.Nu Mexico won final bank authorization as it serves 15 million customers and adds about 12,000 daily.NU ended Q1 2026 with 135.2 million customers, while credit rose 40% and deposits climbed 22%. Nu Holdings Ltd. (NU - Free Report) , the company behind the Nubank brand, announced an agreement to acquire Banco Porto Real de Investimentos in Brazil to add a new banking license to its local operations. The deal, which remains subject to approval from Brazil’s Central Bank, will help Nubank meet regulatory requirements governing the use of bank-related names by financial institutions.
For Brazilian customers, the company said that nothing will change, as the app, products, services, brand and name will remain the same. The acquired license joins NU’s existing payment, credit, investment, financing and brokerage licenses without requiring additional capital or liquidity requirements. Brazil remains its core market, with more than 115 million customers and a planned investment of R$45 billion in 2026.
Nubank is also expanding its banking operations in Mexico. This month, Nu Mexico received final authorization to operate as a bank and must complete the transition within 30 days. It serves 15 million customers, adds about 12,000 customers daily and plans to invest $4.2 billion in the country through 2030.
The timing is backed by strong operating results. NU ended first-quarter 2026 with 135.2 million customers and generated $5.32 billion in managerial revenues. Its credit portfolio rose 40% year over year to $37.2 billion, while deposits increased 22% to $42.4 billion.
Still, investors should view the Brazil move mainly as a regulatory and strategic step rather than an overnight earnings trigger. The larger opportunity lies in deeper product adoption across Brazil’s addressable pool, which exceeds $100 billion in annual gross profit. NU estimates its share of that pool at roughly 7%, leaving room to expand lending, deposits, investments and services.
How Are SOFI & XYZ Faring?SoFi Technologies (SOFI - Free Report) is expanding beyond consumer lending by adding small-business loans, home-equity products, AI financial tools, enterprise banking and blockchain-based services. SOFI's partnerships are also bringing more funding onto its loan platform, reducing reliance on balance-sheet lending. Three agreements announced in March 2026 covered more than $3.6 billion in personal loans.
Block (XYZ - Free Report) is widening its reach through Cash App, Square, Afterpay and bitcoin products, linking consumer payments with merchant services and credit. Its tools include installment plans for peer-to-peer transfers, contactless payments and restaurant technology. Across Cash App Borrow, Afterpay and Square Loans, XYZ has provided customers with access to more than $200 billion.
NU’s Price Performance, Valuation, and EstimatesShares of NU have declined 5.1% in the past three months, underperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 13.87X, well above the industry’s 11.19X. It carries a Value Score of C.
Image Source: Zacks Investment Research
NU’s estimates have declined a cent over the past two months. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at 83 cents.
Image Source: Zacks Investment Research
NU stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bank of New York Mellon Corp lifted its stake in shares of Nu Holdings Ltd. (NYSE:NU – Free Report) by 4.6% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 8,011,073 shares of the company’s stock after purchasing an additional 349,255 shares during the period. Bank of New York Mellon Corp owned 0.16% of NU worth $115,119,000 at the end of the most recent quarter.
A number of other institutional investors have also added to or reduced their stakes in NU. LOM Asset Management Ltd acquired a new stake in shares of NU in the fourth quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd boosted its stake in shares of NU by 14,810.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company’s stock worth $25,000 after acquiring an additional 1,481 shares during the period. Cornerstone Planning Group LLC lifted its holdings in NU by 5,448.3% during the 4th quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company’s stock valued at $27,000 after purchasing an additional 1,580 shares during the last quarter. Zions Bancorporation National Association UT bought a new position in NU during the fourth quarter worth $27,000. Finally, Morse Asset Management Inc bought a new position in NU during the fourth quarter worth $31,000. 84.02% of the stock is currently owned by institutional investors and hedge funds.
Insider Activity at NU In other news, Director Anita M. Sands sold 21,000 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $12.24, for a total transaction of $257,040.00. Following the completion of the sale, the director directly owned 162,150 shares of the company’s stock, valued at $1,984,716. The trade was a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link.
Wall Street Analyst Weigh In NU has been the subject of a number of research reports. Scotiabank downgraded NU to a “sector perform” rating and set a $13.00 target price for the company. in a report on Wednesday, June 3rd. Weiss Ratings lowered shares of NU from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 13th. UBS Group dropped their price objective on shares of NU from $18.10 to $16.90 and set a “buy” rating for the company in a research note on Wednesday, May 20th. Susquehanna downgraded shares of NU from a “positive” rating to a “neutral” rating and cut their price objective for the company from $18.00 to $13.00 in a report on Wednesday, June 3rd. Finally, Needham & Company LLC assumed coverage on shares of NU in a research report on Friday, June 26th. They set a “buy” rating and a $17.00 target price on the stock. Ten equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, NU has a consensus rating of “Moderate Buy” and a consensus target price of $17.24.
Get Our Latest Analysis on NU
NU Stock Up 3.2% Shares of NU opened at $14.03 on Tuesday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.58 and a current ratio of 0.58. Nu Holdings Ltd. has a 52 week low of $11.20 and a 52 week high of $18.98. The stock has a market capitalization of $68.13 billion, a price-to-earnings ratio of 21.59, a PEG ratio of 0.54 and a beta of 0.95. The stock has a fifty day moving average of $12.90 and a 200-day moving average of $14.75.
NU (NYSE:NU – Get Free Report) last released its quarterly earnings results on Friday, May 15th. The company reported $0.19 EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.01). NU had a net margin of 18.20% and a return on equity of 30.91%. The company had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.06 billion. As a group, sell-side analysts anticipate that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.
NU declared that its board has approved a stock repurchase plan on Thursday, June 4th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its shares are undervalued.
NU Profile (Free Report)
Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.
Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.
Further Reading Five stocks we like better than NU The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding NU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Nu Holdings Ltd. (NYSE:NU – Free Report).
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Baader Bank Aktiengesellschaft lowered its holdings in Nu Holdings Ltd. (NYSE:NU – Free Report) by 46.9% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 257,129 shares of the company’s stock after selling 226,729 shares during the quarter. Baader Bank Aktiengesellschaft’s holdings in NU were worth $3,695,000 as of its most recent SEC filing.
Other hedge funds also recently added to or reduced their stakes in the company. Maxi Investments CY Ltd grew its position in NU by 85.5% in the 4th quarter. Maxi Investments CY Ltd now owns 783,000 shares of the company’s stock worth $13,107,000 after purchasing an additional 361,000 shares during the last quarter. C WorldWide Group Holding A S raised its holdings in shares of NU by 1,045.3% during the fourth quarter. C WorldWide Group Holding A S now owns 311,792 shares of the company’s stock valued at $5,219,000 after buying an additional 284,569 shares during the last quarter. Vanguard Group Inc. raised its holdings in shares of NU by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 24,814,878 shares of the company’s stock valued at $415,401,000 after buying an additional 1,037,438 shares during the last quarter. Genoa Capital Gestora de Recursos Ltda. acquired a new position in shares of NU during the fourth quarter worth approximately $3,869,000. Finally, Danske Bank A S boosted its position in shares of NU by 515.0% during the fourth quarter. Danske Bank A S now owns 5,074,732 shares of the company’s stock worth $84,951,000 after buying an additional 4,249,632 shares during the period. 84.02% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes A number of equities analysts recently issued reports on the company. UBS Group decreased their price objective on NU from $18.10 to $16.90 and set a “buy” rating for the company in a report on Wednesday, May 20th. Susquehanna lowered NU from a “positive” rating to a “neutral” rating and reduced their price target for the stock from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Weiss Ratings cut NU from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, May 13th. Scotiabank lowered NU to a “sector perform” rating and set a $13.00 price target on the stock. in a report on Wednesday, June 3rd. Finally, Needham & Company LLC initiated coverage on shares of NU in a research note on Friday, June 26th. They set a “buy” rating and a $17.00 price objective on the stock. Ten analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, NU presently has a consensus rating of “Moderate Buy” and a consensus target price of $17.24.
Check Out Our Latest Analysis on NU
Insider Buying and Selling at NU In other NU news, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $12.24, for a total transaction of $257,040.00. Following the transaction, the director owned 162,150 shares of the company’s stock, valued at $1,984,716. The trade was a 11.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink.
NU Stock Performance NYSE:NU opened at $14.03 on Tuesday. The company has a 50-day moving average of $12.90 and a 200-day moving average of $14.75. The firm has a market cap of $68.13 billion, a price-to-earnings ratio of 21.59, a price-to-earnings-growth ratio of 0.54 and a beta of 0.95. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36. Nu Holdings Ltd. has a twelve month low of $11.20 and a twelve month high of $18.98.
NU (NYSE:NU – Get Free Report) last released its quarterly earnings data on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.01). NU had a return on equity of 30.91% and a net margin of 18.20%.The company had revenue of $5.32 billion for the quarter, compared to the consensus estimate of $5.06 billion. Analysts forecast that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.
NU announced that its board has initiated a share repurchase plan on Thursday, June 4th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.
NU Company Profile (Free Report)
Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.
Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.
Read More Five stocks we like better than NU The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding NU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Nu Holdings Ltd. (NYSE:NU – Free Report).
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Amova Asset Management Americas Inc. cut its holdings in shares of Nu Holdings Ltd. (NYSE:NU – Free Report) by 1.2% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 4,395,488 shares of the company’s stock after selling 54,907 shares during the quarter. Amova Asset Management Americas Inc. owned 0.09% of NU worth $63,163,000 at the end of the most recent quarter.
A number of other hedge funds have also recently made changes to their positions in NU. Kapitalo Investimentos Ltda bought a new stake in shares of NU in the 1st quarter valued at about $10,002,000. AlTi Global Inc. increased its stake in NU by 2.0% in the 1st quarter. AlTi Global Inc. now owns 65,411 shares of the company’s stock worth $940,000 after purchasing an additional 1,275 shares during the period. Earned Wealth Advisors LLC lifted its position in NU by 15.7% in the first quarter. Earned Wealth Advisors LLC now owns 22,292 shares of the company’s stock valued at $320,000 after purchasing an additional 3,023 shares during the last quarter. Investment Management Associates Inc. ADV lifted its position in NU by 15.6% in the first quarter. Investment Management Associates Inc. ADV now owns 1,073,617 shares of the company’s stock valued at $15,428,000 after purchasing an additional 144,894 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in shares of NU by 990.3% during the first quarter. Dimensional Fund Advisors LP now owns 298,789 shares of the company’s stock valued at $4,294,000 after purchasing an additional 271,385 shares during the period. 84.02% of the stock is currently owned by institutional investors.
Insider Activity In other news, Director Anita M. Sands sold 21,000 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $12.24, for a total value of $257,040.00. Following the transaction, the director owned 162,150 shares in the company, valued at approximately $1,984,716. This represents a 11.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link.
NU Stock Performance NYSE:NU opened at $14.03 on Tuesday. The stock has a market cap of $68.13 billion, a P/E ratio of 21.59, a price-to-earnings-growth ratio of 0.54 and a beta of 0.95. The firm’s fifty day simple moving average is $12.90 and its 200 day simple moving average is $14.75. Nu Holdings Ltd. has a twelve month low of $11.20 and a twelve month high of $18.98. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36.
NU (NYSE:NU – Get Free Report) last announced its earnings results on Friday, May 15th. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.01). NU had a return on equity of 30.91% and a net margin of 18.20%.The firm had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.06 billion. As a group, research analysts predict that Nu Holdings Ltd. will post 0.83 EPS for the current year.
NU announced that its board has approved a share buyback program on Thursday, June 4th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.
Wall Street Analysts Forecast Growth NU has been the topic of several recent analyst reports. Susquehanna cut shares of NU from a “positive” rating to a “neutral” rating and cut their target price for the stock from $18.00 to $13.00 in a report on Wednesday, June 3rd. Needham & Company LLC assumed coverage on shares of NU in a report on Friday, June 26th. They set a “buy” rating and a $17.00 price target for the company. Bank of America reissued an “underperform” rating on shares of NU in a research report on Tuesday, June 2nd. Scotiabank lowered shares of NU to a “sector perform” rating and set a $13.00 price target on the stock. in a report on Wednesday, June 3rd. Finally, Zacks Research cut shares of NU from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, March 24th. Ten equities 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’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $17.24.
Read Our Latest Analysis on NU
NU Company Profile (Free Report)
Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.
Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.
Featured Stories Five stocks we like better than NU The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story
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SÃO PAULO--(BUSINESS WIRE)--Nubank, the leading digital financial institution in Latin America, announces an agreement to acquire Banco Porto Real de Investimentos S/A, a bank founded in 1992 in Porto Real, Rio de Janeiro, that operates in the extension of credit to wholesale clients. With this move, which will be submitted for approval by Brazil's Central Bank, Nubank meets the requirements of Joint Resolution No. 17, issued by the Central Bank and the National Monetary Council (CMN), which re.
Key Takeaways Nu Holdings reached 135 million customers as quarterly revenues and net income hit records.Mexico posted its first profitable quarter as Nu expanded to 15 million customers in four years.NU's credit portfolio rose 40%, while delinquencies increased and risk-adjusted margins declined. Nu Holdings Ltd. (NU - Free Report) , the parent of Nubank, has built one of Latin America’s largest digital financial platforms. Its branchless model combines credit cards, deposits, loans, payments and investment products in one mobile application. The company ended the first quarter of 2026 with more than 135 million customers across Brazil, Mexico and Colombia, giving it greater consumer reach than many digital-banking rivals.
NU shares have risen about 6.3% over the past month, outperforming close fintech peers SoFi Technologies, Inc. (SOFI - Free Report) and StoneCo Ltd. (STNE - Free Report) over a comparable recent period. SoFi and StoneCo shares have gained 1.1% and roughly 3.8%, respectively. The comparison suggests that investors have responded positively to Nu’s earnings growth, improving efficiency and progress in Mexico, even as the wider fintech group has remained uneven.
However, a rising share price does not remove the risks. NU is expanding lending rapidly, investing in artificial intelligence and preparing for measured entry into the United States. Investors must balance these growth opportunities against higher provisions, credit exposure and a valuation that already assumes continued execution.
Image Source: Zacks Investment Research
Customer Growth Supports the Bull Case for NUNu Holdings’ scale remains its clearest advantage. The company passed 115 million customers in Brazil, 15 million in Mexico and approached 5 million in Colombia. Monthly activity remained strong at 83%, while monthly average revenue per active customer increased to around $16. These trends helped quarterly revenues reach approximately $5 billion for the first time in the first quarter of 2026.
Profitability also improved. First-quarter net income reached a record $871 million, up 41% year over year on an FX-neutral basis. NU’s reported efficiency ratio fell to 17.6%, showing that revenues continue to grow faster than operating expenses. Management expects the full-year ratio to move closer to 20% as delayed marketing, property and investment costs return during later quarters.
Mexico offers another major opportunity. Nu Holdings’ customer base has expanded from slightly more than 2 million to 15 million in four years. The operation also recorded its first quarter of IFRS profitability ahead of management’s internal plan. Mexico remains underbanked, and NU currently controls less than 1% of the profit pool it hopes to address.
AI and New Products of NU Could Lift EngagementManagement is using artificial intelligence to speed product development, improve credit decisions and lower servicing costs. Engineering output increased more than 50% year over year, while AI-based financial tools were already serving above 15 million monthly active users. Nu Holdings’ proprietary models are being used for credit-card decisions and unsecured lending, allowing the company to assess individual loan requests in under one second.
The company is also expanding into small-business banking. NU has approximately 5 million small-business customers in Brazil, many acquired by cross-selling services to existing personal-banking users. This base could support further growth in business cards, deposits, and secured and unsecured loans without large customer-acquisition spending.
Credit Expansion Creates Risk for NUNU’s credit portfolio climbed 40% to $37.2 billion, led by a 53% increase in unsecured lending. Total credit exposure, including available card limits, rose 44% to $70.7 billion. Because credit cards and unsecured loans made up 98% of new exposure, the company had to record larger expected-loss provisions.
Early-stage delinquencies increased to 5% from 4.11% at year-end, while risk-adjusted net interest margin declined to 9.5% from 10.5%. Management attributed most of the change to normal seasonality, portfolio growth and product mix rather than weakening borrowers. Still, investors should closely watch these measures because rapid unsecured lending can produce larger losses during an economic downturn.
NU’s Estimate RevisionsWhile earnings estimates for both 2026 and 2027 have been revised marginally downward over the past 60 days, the consensus mark has remained unchanged in recent times. However, these figures suggest year-over-year growth of 33.87% and 38.07%, respectively.
Image Source: Zacks Investment Research
Is NU Stock Fairly Valued?NU trades at approximately 13.48 times forward earnings. That is well below SoFi Technologies’ forward multiple of about 24.53 times but considerably above StoneCo’s 4.9 times. The discount to SoFi appears reasonable because SoFi operates in the competitive U.S. market and receives a higher growth premium. Nu Holdings’ premium over StoneCo reflects its larger customer platform, stronger earnings expansion and broader consumer-banking opportunity.
NU's Valuation
Image Source: Zacks Investment Research
NU is not an obvious bargain. StoneCo offers a much cheaper valuation, while SoFi Technologies provides exposure to U.S. lending and financial technology. Investors choosing Nu Holdings over StoneCo or SoFi are betting that its Latin American scale, Mexico expansion and credit models will continue producing above-average growth.
NU Stock Recommendation: HoldNu Holdings has a strong long-term story built around customer growth, low operating costs and a rising presence beyond Brazil. Mexico’s first profitable quarter, higher customer revenues and record net income show that the business can scale effectively. AI tools and small-business products may create additional growth, while NU’s valuation is more reasonable than SoFi Technologies’ multiple.
However, the stock’s recent 6.3% rise, growing unsecured-credit exposure and higher provisions call for patience, and NU must ensure that rapid lending growth will not weaken asset quality. It seems prudent for existing investors to retain their positions, but new buyers may wait for a better entry price.
At present, NU carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest close session, Nu Holdings Ltd. (NU - Free Report) was down 1.45% at $13.59. This move lagged the S&P 500's daily loss of 1.01%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.
The company's stock has climbed by 8.5% in the past month, exceeding the Finance sector's gain of 2.6% and the S&P 500's gain of 0.32%.
Analysts and investors alike will be keeping a close eye on the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.2, showcasing a 42.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.45 billion, indicating a 48.68% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $0.83 per share and a revenue of $22.42 billion, demonstrating changes of +33.87% and +42.13%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Nu Holdings Ltd. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.48% lower. At present, Nu Holdings Ltd. boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Nu Holdings Ltd. is currently exchanging hands at a Forward P/E ratio of 16.53. Its industry sports an average Forward P/E of 11.87, so one might conclude that Nu Holdings Ltd. is trading at a premium comparatively.
Meanwhile, NU's PEG ratio is currently 0.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Banks - Foreign industry held an average PEG ratio of 0.89.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Nu Holdings Ltd. (NU - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned +7.7%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Banks - Foreign industry, which Nu falls in, has gained 8.1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Nu is expected to post earnings of $0.20 per share, indicating a change of +42.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $0.83 points to a change of +33.9% from the prior year. Over the last 30 days, this estimate has changed -0.5%.
For the next fiscal year, the consensus earnings estimate of $1.15 indicates a change of +38.1% from what Nu is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nu is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Nu , the consensus sales estimate for the current quarter of $5.45 billion indicates a year-over-year change of +48.7%. For the current and next fiscal years, $22.42 billion and $27.87 billion estimates indicate +42.1% and +24.3% changes, respectively.
Last Reported Results and Surprise HistoryNu reported revenues of $4.97 billion in the last reported quarter, representing a year-over-year change of +53%. EPS of $0.19 for the same period compares with $0.12 a year ago.
Compared to the Zacks Consensus Estimate of $4.97 billion, the reported revenues represent a surprise of -0.01%. The EPS surprise was -5%.
Over the last four quarters, Nu surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Nu is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nu . However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
