Nu Holdings Shares Surge 10% in Premarket as $1 Billion Profit Revives Margin Narrative

SÃO PAULO, August 14, 2026, 09:13 BRT — U.S. stocks traded ahead of the open.

Nu achieved over $1 billion in quarterly profit for the first time.
Risk-adjusted margin increased by 290 basis points compared with the previous quarter.
The stock rose roughly 10% in premarket trading on Friday.

Nu Holdings Ltd. NYSE:NU jumped 10.1% in premarket action following the digital lender’s announcement of its first quarterly profit surpassing $1 billion. Shares were indicated at $15.33 compared to the previous close of $13.93 on Thursday.

The magnitude of the earnings surprise was significant. Net income amounted to $1.06 billion, which is 9.6% higher than the Visible Alpha forecast. Revenue also exceeded the consensus, coming in 5.0% above estimates.

Q2 2026 measure	Reported	Estimate / reference	Variance
Net income	$1.06 billion	$967.2 million	+9.6%
Revenue	$5.88 billion	$5.60 billion	+5.0%
Premarket share price	$15.33	$13.93 prior close	+10.1%

Sources: Reuters/Visible Alpha and Investing.com. Variances calculated from reported figures.

The bigger surprise was found beneath the headline. The risk-adjusted net interest margin climbed to 12.4%, up from 9.5% in the previous quarter. According to JPMorgan analysts, even optimistic investors were anticipating around 11%.

The 290 basis point recovery shifted the conversation around earnings. Credit costs dropped by $100 million from the prior period, and early delinquencies improved by 20 basis points. The loan portfolio continued to expand by almost 6%.

Credit and margin indicator	Q2 2026	Q1 2026	Sequential change
Risk-adjusted NIM	12.4%	9.5%	+290 bps
Credit costs	$1.69 billion	$1.79 billion	-5.6%
15–90 day delinquency	4.8%	5.0%	-20 bps
Credit portfolio	$39.4 billion	$37.2 billion	+5.9%

Sources: Reuters Q2 report and Nu’s Q1 release. Changes calculated from rounded figures.

Chief Financial Officer Rob Livingston described the current margin level as sustainable over the near term. He noted that Brazil’s Desenrola refinancing program accounted for just around 5% of credit costs. He also stated that seasonal improvements would have happened even without the program.

A trade-off was evident. The credit portfolio reached $39.4 billion, marking a 5% increase from the previous quarter, but the growth pace was slower than in the first quarter. Livingston attributed the slower growth to an unusually robust expansion in the prior period.

Scale measure	Q2 2026	Q1 2026	Change
Customers	Almost 139 million	135.2 million	Increase of around 3.8 million
Net income	$1.06 billion	$871.4 million	Rise of 21.6%
Revenue	$5.88 billion	$5.32 billion	Up 10.6%
Credit portfolio	$39.4 billion	$37.2 billion	Growth of 5.9%

Sources: Reuters and Nu’s Q1 SEC filing; Q1 values are $5,315.5 million revenue, $871.4 million income and 135.2 million customers. Changes use rounded Q2 figures.

Nu maintained solid customer growth, serving almost 139 million individuals in Brazil, Mexico, and Colombia. This figure was up by around four million compared to the end of March.

Nu’s second-quarter performance bolsters its capital case. In June, the board approved share buybacks of as much as $1 billion within a 12-month period. Managers stated that funding for expansion into new markets and regulatory capital cushions are intact.

Analyst / firm	Recommendation	Price target	Latest listed action
JPMorgan NYSE:JPM	Buy	$20	Target increased, July 7
Needham	Buy	$17	Started coverage, June 26
Citi NYSE:C	Hold	$13	Cut rating, June 15
Susquehanna	Hold	$13	Cut rating, June 3
BofA Securities NYSE:BAC	Sell	$10	Cut rating, June 2

Source: Investing.com analyst data. Targets are 12-month figures reported before the Q2 release.

Analysts were split ahead of the earnings report. Five of the latest price targets ranged from $10 to $20. The highest target suggested a 30% potential gain from the premarket price Friday, while the lowest pointed to a 35% potential drop.

Friday’s action does not resolve that range. Instead, it places emphasis on whether a risk-adjusted margin above 12% can be maintained as loan growth returns to normal levels.

Risks: Early-stage delinquencies stayed 30 basis points higher than the previous year. Credit costs climbed 60%. Fluctuations in currencies, the Brazilian economy, and a scheduled U.S. rollout could weigh on returns.

Execution is the next challenge. Investors benefit from a broader margin cushion, yet they have lower tolerance for further credit weakness.

TS2 TECH • EXTENDED COVERAGE

Further analysis

Editorial insight

What drove Nu Holdings shares higher ahead of Friday's market open?

Nu reported net income of $1.06 billion for the second quarter, marking its first time surpassing the $1 billion mark. This figure exceeded the Visible Alpha consensus by approximately 9.6%. The company also posted revenue above analyst forecasts, with risk-adjusted net interest margin increasing to 12.4%. Shares were up around 10% compared to Thursday’s close in premarket trading. Moves in premarket trading can shift rapidly once the regular session starts.

Which figure stood out most in Nu’s earnings report?

A risk-adjusted net interest margin of 12.4% stood out as the primary number. This was up from 9.5% in the prior quarter and went beyond the approximate 11% mark that JPMorgan analysts indicated was anticipated by bullish investors. The figure reflects growth in lending income after accounting for credit costs. However, its durability is still in question as the portfolio ages.

Has Nu seen an improvement in its credit quality?

Short-term indicators showed improvement from the previous period. Credit costs declined to $1.69 billion from $1.79 billion, and the 15–90 day delinquency rate dipped to 4.8% from 5.0%. Still, early delinquencies were up by 30 basis points over the same period last year, and credit costs stayed 60% above the previous-year level. Investors are cautioned against viewing a single quarter as establishing a new trend.

What factors may impact the next move in Nu Holdings stock?

Key factors include sustained margins, credit trends and the rate of portfolio expansion. The credit portfolio grew roughly 5% from the previous quarter to $39.4 billion, a slower increase compared to the first quarter. Developments in Mexico and the intended U.S. rollout are also significant, but both initiatives may increase costs ahead of making a substantial impact on profits.