SÃO PAULO, August 18, 2026, 14:05 EDT
- Nu shares fell 2.1% to $14.435 during Tuesday trading.
- About 62% of the initial post-earnings gain has faded.
- Analyst targets span $10 to $23 after record quarterly profit.
Nu Holdings Ltd. NYSE:NU fell 2.1% to $14.435 on Tuesday, extending a retreat from its initial post-earnings jump. About 62% of that first gain has now faded. The New York market remained open.
The pullback creates a sharper test than the headline profit beat. Nubank earned more than $1 billion in a quarter for the first time. Yet investors still differ widely on the value of faster credit growth.
The stock had jumped about 9.5% after Thursday’s report to roughly $15.25. That implies a pre-release reference near $13.93. Tuesday’s price remained about 3.6% above that level, but 5.3% below the initial after-hours quote.
| Price comparison | Price | Change from Tuesday price |
|---|---|---|
| Implied pre-earnings reference | About $13.93 | +3.6% |
| Initial after-hours reaction | About $15.25 | -5.3% |
| Tuesday intraday | $14.435 | Reference |
| 52-week high | $18.98 | -23.9% |
| 52-week low | $11.20 | +28.9% |
Second-quarter net income reached $1.06 billion, up 49% on a currency-neutral basis. That beat the Visible Alpha estimate of $967.2 million by about 9.6%. Gross revenue of $5.88 billion exceeded the $5.60 billion estimate by 5.0%.
| Q2 measure | Reported | Comparison |
|---|---|---|
| Net income | $1.06 billion | +49% year on year; 9.6% above estimate |
| Gross revenue | $5.88 billion | +39% year on year; 5.0% above estimate |
| Risk-adjusted NIM | 12.4% | 9.5% in Q1; 9.9% year earlier |
| Return on equity | 33% | 29% in Q1 |
| Customers | 139 million | About 4 million added in Q2 |
The margin result was the strongest part of the release. Risk-adjusted net interest margin rose 290 basis points from the first quarter. A basis point is one-hundredth of a percentage point. Chief Financial Officer Rob Livingston said the 12.4% level looked “sustainable in the foreseeable future.” Reuters
Credit quality remains the counterweight. Cost of credit fell 9% from the first quarter to about $1.7 billion. It was still 60% higher than a year earlier. Early delinquencies improved sequentially, while loans more than 90 days overdue rose.
| Credit measure | Q2 2026 | Relevant comparison |
|---|---|---|
| Total credit portfolio | $39.4 billion | +37% year on year; +5% quarter on quarter |
| 15-90 day delinquency | 4.8% | Down 16 basis points quarter on quarter |
| 90+ day delinquency | 6.9% | Up 35 basis points quarter on quarter |
| Cost of credit | About $1.7 billion | -9% quarter on quarter; +60% year on year |
| Deposits | $45.3 billion | +18% year on year; +6% quarter on quarter |
The analyst response widened the valuation debate. Morgan Stanley reiterated Buy with a $21 target on Monday. Goldman Sachs raised its target to $23, while Bank of America kept a Sell rating and $10 target.
| Analyst recommendation | Count | Share of 22 ratings |
|---|---|---|
| Strong Buy | 13 | 59% |
| Buy | 5 | 23% |
| Hold | 3 | 14% |
| Sell | 1 | 5% |
| Strong Sell | 0 | 0% |
The $18.63 average target implies 29.1% upside from Tuesday’s price. The range matters more. The $10 low implies 30.7% downside, while the $23 high implies 59.3% upside. That dispersion is a 2.3-fold gap between the endpoints.
Risks center on Brazil’s credit cycle and Nu’s expansion into riskier borrowers. A renewed rise in early delinquencies could lift provisions and reverse the margin gain. Currency moves can also distort dollar-reported growth. Faster monetization in Mexico would push the other way.
The next test is whether 12.4% risk-adjusted margin persists as loans season. Tuesday’s retreat shows investors are waiting for that evidence. Record profit alone has not closed the valuation gap.
Related articles: NYSE:NU
Nu Holdings
14:05:44 EDT · Market open
