NEW YORK, August 14, 2026, 13:00 EDT — U.S. cash markets remained open.
- Shares of Nu increased by 10.23% to $15.36 after the company posted its first quarter with a $1 billion profit.
- Risk-adjusted net interest margin stood at 12.4%, marking an increase of 290 basis points compared to the first quarter.
- New analyst price targets range between $10 and $19, keeping the valuation discussion unresolved.
Shares of Nu Holdings Ltd. NYSE:NU rose 10.23% to $15.36 on Friday morning after the Brazilian digital banking group reported quarterly profit above $1 billion for the first time. Trading volume hit 83.1 million shares by 11:31 EDT, amounting to 94% of its usual daily average.
Lending economics sent a clearer message. The risk-adjusted net interest margin increased to 12.4%, up 290 basis points from the previous quarter and 140 points higher than the approximately 11% figure bullish investors anticipated, according to JPMorgan.
| Q2 2026 measure | Result | Comparison | Investor read-through |
|---|---|---|---|
| Net profit | $1.06 billion | Up 49% YoY; 9.6% ahead of $967.2 million forecast | First time topping $1 billion in a quarter |
| Revenue | $5.88 billion | Gained 39% on prior year; 5.0% over the $5.60 billion projection | Expansion continued across segments |
| Risk-adjusted NIM | 12.4% | 9.9% for same period last year | Margin widened by 250 basis points |
| Credit portfolio | $39.4 billion | Rose 37% YoY; up 5% from prior quarter | Loan book continued to expand |
| Early delinquency | 4.8% | 5.0% in Q1; increased 0.3 points YoY | Dropped sequentially, warning on annual view |
Net profit exceeded the Visible Alpha consensus by $92.8 million, while revenue surpassed expectations by approximately $280 million. The combination of a higher top line and improved margins signals that this is not solely a credit-cost narrative.
| Margin and risk bridge | Q1 2026 | Q2 2026 | Sequential change |
|---|---|---|---|
| Risk-adjusted NIM | 9.5% | 12.4% | +290 bps |
| Credit costs | $1.79 billion | $1.69 billion | -$100 million, or -5.6% |
| Credit portfolio | $37.2 billion | $39.4 billion | Up roughly 5.9% |
| Customers | More than 135 million | Nearly 139 million | Increase of about 4 million |
| 15–90 day delinquency | 5.0% | 4.8% | Down 20 bps |
Chief Financial Officer Rob Livingston stated that the risk-adjusted margin of 12.4% appeared sustainable “in the foreseeable future.” He mentioned that quarterly loan growth had moderated following an exceptionally strong period of expansion. The loan portfolio still grew by around 5% since March. Reuters interview and earnings call
Credit costs declined by $100 million compared to the previous quarter. Livingston stated that Brazil’s Desenrola refinancing initiative accounted for around 5% of all credit costs—approximately $85 million by calculation. He noted the positive change would have occurred regardless, as seasonality was also a contributing factor.
| Friday trading snapshot | Value | Context |
|---|---|---|
| Price at 11:31 EDT | $15.36 | Up 10.23% so far today |
| Session range | $15.22–$16.22 | Started trading at $15.74 |
| Volume | 83.06 million | 94% of 88.50 million usual volume |
| Market capitalization | $74.27 billion | Roughly 23.7 times trailing profit |
| 52-week range | $11.20–$18.98 | Still 19% under the peak |
Nu’s market value rose by approximately $6.9 billion compared to Thursday’s close, according to Google Finance data. This increase is nearly seven times the $1 billion share repurchase program disclosed in June. While the buyback may help underpin the shares, earnings remain the main driver.
Analyst opinions are mixed. On Friday, Needham reaffirmed its Buy rating and raised its price target to $19. Susquehanna held its Hold stance with a $16 price target. After the results, Bank of America continued to rate the stock as Sell with a $10 target.
| Analyst | Date | Recommendation | Target | Return from $15.36 |
|---|---|---|---|---|
| Kyle Peterson, Needham | Aug. 14 | Buy, reiterated | $19 | +23.7% |
| James Friedman, Susquehanna | Aug. 14 | Hold, maintained | $16 | +4.2% |
| Mario Pierry, Bank of America | Aug. 13 | Sell, maintained | $10 | -34.9% |
| Nine-analyst consensus | Past three months | 6 Buy / 2 Hold / 1 Sell | $17.10 average | +11.3% |
The main point of contention is the target spread. Optimists anticipate a sustained margin exceeding previous forecasts. Pessimists remain concerned about increased yearly credit expenses and operational challenges as Nu moves into markets outside Brazil.
Nu started the quarter serving over 135 million customers, holding $42.4 billion in deposits alongside a credit portfolio valued at $37.2 billion as of the end of March. Growth in the credit portfolio outpaced customer expansion in the second quarter, highlighting stronger monetization.
The United States is still viewed as a longer-term opportunity. In January, Nu secured conditional approval to launch a national bank. Regulatory guidelines require Nu to fund the bank within 12 months and begin operations within 18 months.
Risks: Credit costs stayed 60% above the level seen a year ago. Early delinquency rates also held 0.3 percentage point higher versus last year. Any turnaround in Brazil’s credit cycle, a deceleration in loan growth, increased expansion expenses, or potential delays in U.S. execution could challenge the updated margin estimates.
Persistence is the subsequent test. Should a risk-adjusted margin above 12% be sustained with delinquencies under control, the rerating seen on Friday will have earnings backing. If it declines closer to the prior 11% bull scenario, today’s valuation offers less margin for mistakes.
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