SÃO PAULO, August 29, 2026, 23:01 (EDT) — Nu shares slid 3.9%, erasing $2.8 billion in market value after robust earnings as investors digested Federal Reserve risk.
- Nu ended Friday at $14.30, falling 3.9%, with 79.14 million shares traded.
- The drop wiped out approximately $2.8 billion in equity value.
- Net profit in the second quarter hit an all-time high of $1.06 billion.
- The consensus analyst price target is $18.78, suggesting shares could gain 31%, though projections range from $10 to $23.
Nu Holdings (NYSE: NU) dropped 3.9% on Friday to finish at $14.30, wiping out roughly $2.8 billion in market capitalization. Trading volume was 79.14 million shares market data.
The drop is significant as it offset much of the improved earnings outlook. Nu shares previously rose 9.5% following the announcement of its first $1 billion quarterly profit. The stock ended Friday trading below the after-hours price of around $15.25 seen post-earnings.
No fresh operating results impacted Friday’s trading. The decline paralleled a wider move in rates as Federal Reserve Chair Kevin Warsh highlighted ongoing inflation concerns. The dollar rose 0.66% against Brazil’s real, putting further pressure on emerging market assets Brazil market close.
Nu reported robust fundamentals in its most recent quarter. Second-quarter revenue climbed 39% to $5.88 billion, ahead of Visible Alpha’s $5.60 billion projection. Net income was $1.06 billion, up 49% and surpassing the $967.2 million estimate Reuters.
Earnings quality strengthened. Risk-adjusted net interest margin rose to 12.4%, compared with 9.9% in the previous year. Chief Financial Officer Rob Livingston told Reuters that the margin appeared sustainable going forward.
Credit risk remains a concern. The cost of credit declined by 9% quarter-on-quarter to $1.69 billion, but stayed 60% higher than a year earlier. Loans increased 37% to reach $39.4 billion.
Early delinquencies slipped by 16 basis points to 4.8%. Meanwhile, loans past due over 90 days climbed 35 basis points to 6.9%. Nu stated that this uptick was primarily due to a seasonal shift from earlier delinquencies company filing.
Expanding its earnings base, Nu gained around four million new customers in the quarter, bringing its total to 139 million. Average monthly revenue per active customer neared $17, and the activity rate increased to 83.5%.
| Q2 2026 metric | Reported | Comparison | Investor reading |
|---|---|---|---|
| Revenue | $5.88bn | $5.60bn estimate | 5% above forecast |
| Net income | $1.06bn | $967.2m estimate | 10% ahead of estimate |
| Risk-adjusted NIM | 12.4% | 9.9% year earlier | 250 basis points higher |
| Early NPL ratio | 4.8% | 5.0% in Q1 | 20 basis points better |
| 90+ day NPL ratio | 6.9% | 6.55% in Q1 | 35 basis points worse |
Nu ended Friday trading at about 19.5 times its trailing earnings. While this valuation is under its recent high, it continues to reflect expectations for sustained growth in Brazil, Mexico and Colombia. Trading volume on Friday was just 3% higher than the stock’s 65-day average.
Wall Street maintains a generally positive outlook, though opinions vary. Out of 22 analysts surveyed, 18 have issued buy ratings for the stock. Three advise holding, while one suggests selling. The consensus price target is $18.78, spanning a broad range from $10 to $23 analyst consensus.
Funding costs, fluctuations in Brazil’s currency, and the process of credit normalization continue to be the main risk factors. A stronger dollar can decrease earnings once converted. An acceleration in unsecured lending could cause late-stage delinquencies to rise ahead of any gains in revenue.
The investor benchmark is straightforward. Nu must maintain a risk-adjusted margin close to 12% as it incorporates global investment. Achieving this would mean that Friday’s macro-driven fall allows earnings to align further with its valuation.
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