SÃO PAULO, August 15, 2026, 18:05 BRT — U.S. markets have shut for the weekend.
Shares of Nu Holdings Ltd. NYSE:NU surged 9.3% on Friday after reporting quarterly net income above $1 billion for the first time. Net income reached $1.061 billion, surpassing the Visible Alpha consensus estimate by roughly 9.7%.
The credit side showed the clearer momentum. Risk-adjusted net interest margin increased by 290 basis points compared with the previous quarter, while the credit portfolio grew 5%.
The credit landscape diverged. Initial delinquencies saw improvement, largely due to seasonal factors. Meanwhile, loans overdue beyond 90 days increased by 40 basis points.
| Market measure | Latest | Comparison |
|---|---|---|
| Friday close | $15.23 | Rose 9.3% from $13.93 |
| Weekly change | +10.0% | $13.84 on August 7 |
| Friday volume | 156.3 million | 2.07 times the three-month average |
| Friday high | $16.22 | Ended session 6.1% below the high |
| 52-week high | $18.98 | Closed 19.8% under that mark |
Trading volume rose to more than twice the three-month average. However, the stock gave up some of its earlier gains during the session, ending 6.1% lower than Friday’s peak.
Gross revenue totaled $5.876 billion, surpassing the Visible Alpha forecast by 4.9%. Gross profit rose 25% from the previous quarter, outpacing the rate of revenue growth.
| Operating measure | Q2 2026 | Q1 2026 | Q2 2025 |
|---|---|---|---|
| Gross revenue | $5.876 billion | $5.316 billion | $3.772 billion |
| Net income | $1.061 billion | $871 million | $637 million |
| Risk-adjusted NIM | 12.4% | 9.5% | 9.9% |
| Efficiency ratio | 19.5% | 17.6% | 21.3% |
| NPL, 15–90 days | 4.8% | 5.0% | 4.5% |
| NPL, 90+ days | 6.9% | 6.5% | 6.5% |
Nu reported a 9% quarter-on-quarter drop in cost of credit to $1.691 billion. Executives cited the usual second-quarter reduction in early delinquencies as a key factor in the improvement.
The efficiency ratio increased to 19.5%, up from 17.6%. Nu attributed this to changes in real estate and marketing expenses, as well as ongoing investment abroad. The metric stayed stronger than the 21.3% reported in the prior year.
CEO David Vélez stated that Nu is “now generating more than a billion dollars in quarterly net income.” The number of customers rose to 138.9 million, reflecting a 13% increase over the past year.
Deposits increased 6% from the previous period, reaching $45.3 billion. The credit portfolio stood at $39.4 billion, keeping deposits well above total loans.
Mexico presents the next opportunity for expansion. Nu counted 15.8 million customers in Mexico as of June, rising to 16 million in July. The company commenced its full banking operations in the country at the start of August.
| Analyst | Latest rating | Target | Upside/downside to $15.23 |
|---|---|---|---|
| Goldman Sachs | Buy | $22 | +44.5% |
| Morgan Stanley | Buy | $21 | +37.9% |
| JPMorgan | Buy | $20 | +31.3% |
| Needham | Buy | $17 | +11.6% |
| 22-analyst consensus | Buy | Average $17.98 | +18.1% |
Analysts maintain a positive consensus, though price targets range from $10 to $22. The wide spread highlights differing expectations on whether credit growth will outpace potential future losses.
In the coming week, investors will assess if the earnings gap recorded on Friday remains intact. The main indicator will be sustained margin strength, provided there is no further increase in late delinquencies.
Risks: Margin improvement could be undone by a slowdown in Brazil’s economy, an increase in funding costs, or a quicker shift into 90-day delinquencies. The push into Mexico adds short-term spending and execution risks.
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