SÃO PAULO, August 17, 2026, 08:10 BRT
- Nu finished Friday’s session at $15.23, rising 9.33%, and gained another 1.12% in premarket trading on Monday.
- Risk-adjusted net interest margin stood at 12.4%, surpassing the bullish investor benchmark of 11%.
- Credit growth decelerated from the previous period, and early delinquencies stayed higher than the same period last year.
Nu Holdings Ltd. NYSE:NU opened Monday’s premarket trading at $15.40 after finishing Friday with a 9.33% surge on volume more than double its typical level. The gain propelled Nu to the top spot among eligible stocks on Yahoo Finance’s most-active list.
The outperformance in earnings reflected more than just increased scale. Risk-adjusted net interest margin climbed to 12.4%, compared to 9.9% during the same period a year ago. JPMorgan analysts described it as “a solid beat even for investors who were positive into the print.” Their optimistic estimate had been around 11%. Reuters
The key factor is the 140-basis-point gap. It indicates that pricing and funding improvements are offsetting higher credit costs. Investors are currently assessing if this margin will be sustained.
| Q2 measure | Reported | Comparison | Read-through |
|---|---|---|---|
| Net income | $1.06 billion | Up 49% year-on-year; $967.2 million expected | First time net income exceeded $1 billion in a quarter |
| Revenue | $5.88 billion | Up 39% year-on-year; $5.60 billion expected | Roughly 5% above projections |
| Risk-adjusted NIM | 12.4% | Was 9.9% in the prior year | Margin expanded by 250 basis points |
| Credit portfolio | $39.4 billion | 37% above last year; 5% above last quarter | Growth pace slower than Q1 |
| Early delinquencies | 4.8% | 5.0% last quarter; 4.5% previous year | Sequential decline, yearly increase |
| Cost of credit | $1.69 billion | $1.79 billion prior quarter; up 60% year-on-year | Improved over quarter, up over year |
Chief Financial Officer Rob Livingston credited the rise in profit to increased revenue and stronger risk-adjusted margins. He told analysts that the existing margin appeared sustainable going forward. That assertion is likely to be more significant than the main profit figure.
Credit continues to balance the equation. Expenses dropped by $100 million compared to the first quarter, yet stayed 60% higher than a year ago. According to Livingston, just around 5% of total credit costs stemmed from Brazil’s Desenrola refinancing initiative. The majority resulted from portfolio-wide and seasonal trends.
Some of that staying power is now reflected in the valuation. As of Friday, the company’s market capitalization reached $73.57 billion, which is about 17.4 times the annualized second-quarter net profit. This run-rate does not constitute a prediction. According to Google Finance, the trailing price-to-earnings ratio stands at 20.73.
| Market measure | Latest | Investor context |
|---|---|---|
| Friday close | $15.23 | Gained 9.33% |
| Monday premarket | $15.40 | Rose 1.12% |
| Friday volume | 156.27 million | 2.07 times the three-month average |
| 52-week range | $11.20-$18.98 | Ended 19.8% under the peak |
| Market capitalization | $73.57 billion | Equivalent to about $529 per customer |
| Trailing P/E | 20.73 | Following the earnings jump |
Opinions on Wall Street are mixed. Of nine recent analyst ratings, six were Buy, while two were Hold and one was Sell. The mean price target stood at $17.21, representing a 13% premium to Friday’s close. However, the wide target span of $10 to $23 highlights ongoing concerns over margins and the credit cycle.
| Analyst | Firm | Recommendation | Price target | Date |
|---|---|---|---|---|
| James Friedman | Susquehanna | Hold, reaffirmed | $16 | Aug. 14 |
| Kyle Peterson | Needham | Buy, reaffirmed | $19 | Aug. 14 |
| Tito Labarta | Goldman Sachs | Buy, unchanged | $23 | Aug. 14 |
| Mario Pierry | Bank of America Securities | Sell, unchanged | $10 | Aug. 13 |
Nu holds approval to repurchase up to $1 billion of shares until June 2027. According to the board, cash generated from operations is sufficient to support buybacks while maintaining investment in growth initiatives and meeting regulatory capital requirements. Whether and when repurchases occur is at management’s discretion.
The cash session on Monday will be the next gauge. Sustaining levels above Friday’s close would indicate that investors are comfortable with increased credit costs as margins improve. A downturn would raise questions about the assertion of durability.
Risks: Nu’s open-ended loan portfolio makes profits vulnerable to shifts in Brazil’s job market, inflation and interest rates. Delinquency rates remain above their levels from a year earlier. Growing operations in Mexico, Colombia and the United States could increase expenses ahead of achieving scale.
The billion-dollar quarter established a new milestone. The margin now faces the test of maintaining it.
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