NEW YORK, August 19, 2026, 16:05 EDT — U.S. markets have closed.
- Nu ended the session at $14.585, rising 1.64%, with trading volume at 102.66 million shares.
- Risk-adjusted net interest margin increased by 290 basis points compared with the first quarter.
- Late-stage delinquencies continued to rise, sustaining the ongoing credit discussion.
Nu Holdings Ltd. NYSE:NU rose 1.64% on Wednesday, driven by record quarterly profit that renewed hopes for a margin rebound. Trading activity was robust, with volume at 102.66 million shares—approximately 1.35 times its three-month average, Nasdaq market data showed.
The more significant investor takeaway is found beneath the headline numbers. The risk-adjusted net interest margin rose to 12.4% from 9.5% in the previous quarter. This 290-basis-point increase occurred as early delinquencies declined.
Credit quality showed no overall improvement. The proportion of loans past due by over 90 days increased to 6.9% from 6.5%. This disparity contributes to why the shares closed beneath the $15.25 after-hours level indicated following earnings.
| Q2 result | Reported | Estimate | Beat |
|---|---|---|---|
| Net income | $1.06 billion | $967.2 million | 9.6% |
| Revenue | $5.88 billion | $5.60 billion | 5.0% |
| Risk-adjusted NIM | 12.4% | About 11% bull case | Roughly 140 bps |
Net income for the second quarter totaled $1.06 billion, surpassing the Visible Alpha forecast of $967.2 million by 9.6%. Revenue stood at $5.88 billion, exceeding the estimated $5.60 billion by 5.0%.
The lender reached close to 139 million clients in Brazil, Mexico and Colombia. Its credit portfolio expanded 37% compared to a year ago, rising to $39.4 billion. Growth remains strong.
| Operating measure | Q1 2026 | Q2 2026 | Quarterly change |
|---|---|---|---|
| Risk-adjusted NIM | 9.5% | 12.4% | up 290 bps |
| Cost of credit | $1.79 billion | $1.69 billion | down 5.6% |
| Credit portfolio | $37.2 billion | $39.4 billion | up 5.9% |
| Early delinquency | 5.0% | 4.8% | down 20 bps |
| 90+ day delinquency | 6.5% | 6.9% | up 40 bps |
| Return on equity | 29% | 33% | increase of 4 points |
The cost of credit dropped by 5.6% compared to the previous quarter, but was still up 60% year-on-year. Chief Financial Officer Rob Livingston stated the risk-adjusted margin is “sustainable in the foreseeable future.” Reuters
A debt-renegotiation initiative in Brazil accounted for roughly 5% of credit expenses. According to management, seasonal improvement would have taken place even without this program. As a result, investors should not consider the entire quarter-on-quarter drop as structural.
According to JPMorgan analysts, the release represented a “solid beat” even for optimistic investors. In their note, they stated those bullish investors had projected about 11% risk-adjusted margin. The reported figure surpassed that informal benchmark. Reuters
| Analyst | Recommendation | Price target | Implied move from $14.585 |
|---|---|---|---|
| Goldman Sachs | Buy | $22 | +50.8% |
| JPMorgan | Buy | $20 | +37.1% |
| Needham | Buy | $17 | +16.6% |
| Citigroup | Hold | $13 | -10.9% |
| Susquehanna | Neutral | $13 | -10.9% |
| Bank of America | Underperform | $10 | -31.4% |
Analysts are divided over the value of the credit mix. The six listed price targets below range from $10 to $22. The broader consensus among 22 analysts followed by StockAnalysis stands at $17.98, which is 23.3% higher than Wednesday’s closing price.
Nu holds a $1 billion buyback authorization effective for 12 months starting June 4, representing roughly 1.4% of its $70.82 billion market capitalization as of Wednesday. This provides some support, yet would not offset a sudden shift in the credit cycle.
The subsequent evaluation focuses on durability. Maintaining a margin close to 12.4% would enhance earnings potential as the loan portfolio grows. Any additional increase in 90-day delinquencies would refocus attention on loss reserves.
Risks: Fluctuations in currency values can skew growth figures, and accelerated unsecured lending could increase default rates. Regulatory expenses in Brazil, Mexico or Colombia may additionally weigh on returns.
At present, the quarter strengthened the profit outlook but did not resolve the credit issue. This ongoing tension remains the key question for the stock’s valuation.
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