NEW YORK, August 20, 2026, 07:30 EDT
- Nu posted $1.06 billion of quarterly profit, 9.6% above consensus.
- Risk-adjusted margin reached 12.4%, while 90-day delinquencies rose to 6.9%.
- Premarket shares at $14.67 remained below the $15.25 post-results peak.
Nu Holdings Ltd. NYSE:NU has turned a billion-dollar profit quarter into a credit-quality test. Second-quarter net income reached $1.06 billion, beating the Visible Alpha estimate by roughly $93 million. Revenue also cleared expectations.
The stronger signal came from margin after expected losses. Risk-adjusted net interest margin rose to 12.4%, from 9.9% a year earlier. That suggests Nu is earning more for each unit of credit risk.
| Q2 2026 result | Reported | Consensus | Beat |
|---|---|---|---|
| Net income | $1.06bn | $967.2m | 9.6% |
| Revenue | $5.88bn | $5.60bn | 5.0% |
Investors have not treated the result as a free pass. Nu traded at $14.67 before Thursday’s open, up 0.6% from Wednesday’s close. The quote was still 3.8% below its $15.25 post-results peak.
The restraint is visible in late-stage arrears. Loans overdue by more than 90 days climbed 35 basis points sequentially to 6.9%. Earlier-stage delinquencies improved by 16 basis points.
| Operating measure | Q2 2026 | Comparison | Direction |
|---|---|---|---|
| Risk-adjusted NIM | 12.4% | 9.9% in Q2 2025 | +250 bp |
| 15–90 day NPL | 4.8% | 4.96% in Q1 2026 | -16 bp |
| 90+ day NPL | 6.9% | 6.55% in Q1 2026 | +35 bp |
| Efficiency ratio | 19.5% | 21.3% in Q2 2025 | -180 bp |
Credit costs were $1.69 billion, 60% higher than a year earlier. Chief Financial Officer Rob Livingston said a Brazilian restructuring program represented 5% of the total. He said the underlying trend still improved.
Scale helps absorb that burden. Nu ended June with 139 million customers and added four million during the quarter. Gross profit rose 43% to $2.4 billion on a currency-neutral basis.
| Market | Customers | Useful read-through |
|---|---|---|
| Brazil | Almost 118m | Monthly activity above 86% |
| Mexico | 15.8m | 16.5% of adults; $12.30 ARPAC at comparable maturity |
| Colombia | More than 5m | Early-stage scale build |
| Group | 139m | $17 monthly ARPAC; 83.5% activity |
Mexico now offers the clearest operating leverage outside Brazil. Its monthly revenue per active customer was $12.30 at a comparable maturity. Brazil produced $5.60 at the same stage.
Chief Executive David Vélez called the profit milestone “no longer a hypothesis.” Nu also said artificial intelligence handles more than 60% of support conversations in Brazil. That can protect service levels as the customer base expands. company statement
| Analyst dataset | Recommendation mix | Average target | Range |
|---|---|---|---|
| S&P Global / StockAnalysis | Buy; 22 analysts | $17.98 | $10–$22 |
| MarketBeat | 10 buy / 4 hold / 1 sell | $17.24 | $13–$21 |
| Yahoo Finance | 1.6, Buy | Not stated | Not stated |
The $17.98 average target implies about 23% upside from Wednesday’s close. Yet analyst datasets differ sharply on the low case. That spread reflects uncertainty around credit seasoning, not customer growth.
Nu’s $14.61 close valued the shares at about 12.8 times forward earnings. It also sat below the 200-day average of $15.04. The stock therefore prices in progress, but not an uncontested margin story.
Risks: A weaker Brazilian consumer could push 90-day arrears higher. Faster Mexican growth may also require more provisions before its revenue base matures.
The next useful proof point is simple. Risk-adjusted margin must hold while late-stage delinquencies flatten. If both happen, Nu’s billion-dollar quarter becomes repeatable rather than exceptional.
Related articles: NYSE:NU
The margin is real. Credit is the test.
$14.61
