SÃO PAULO, September 1, 2026, 07:43 EDT — Nu Holdings shares dropped 1.2% in premarket trading, as the company’s 20x price-to-earnings ratio remains higher than those of other banks.
- Nu was changing hands at $14.37 as of 07:36 EDT, slipping 1.2% in premarket trading.
- Trading volume on Monday totaled 95.3 million shares, exceeding its three-month average by 25%.
- Net income for the quarter increased by 49%, as delinquencies over 90 days climbed to 6.9%.
Nu Holdings Ltd. NYSE:NU was at $14.37 ahead of Tuesday’s session, marking a 1.2% decline from the previous close of $14.55 on Monday.
The decline came after shares rose 1.7% on Monday with 95.3 million traded. Volume was 25% higher than the three-month average of 76.1 million.
The development intensifies the debate over valuation. Nu’s expansion and profits justify a higher valuation, yet late-stage delinquencies continue to climb.
Nu shares retreat from the August 25 close
NYSE close, then September 1 premarket; U.S. dollars
As of . Source: Yahoo Finance market data.
The stock is down 5.1% since the close on August 25. Monday’s bounce clawed back just a portion of Friday’s drop.
Nu’s premium is supported by its latest performance. Second-quarter revenue climbed to $5.88 billion, marking a 39% increase on a currency-neutral basis. Founder and CEO David Vélez noted that Nu is “now generating more than a billion dollars in quarterly net income.” Nu 2Q26 earnings release
Second-quarter scale converted into profit
Quarter ended June 30, 2026. Source: Nu Holdings 2Q26 results.
Net income increased by 49% to $1.06 billion. Return on equity climbed to 33%, up five percentage points from the previous year.
The increase in margin came at the expense of added credit risk. The risk-adjusted net interest margin increased to 12.4% compared with 9.5% in the previous quarter.
Higher margin, mixed delinquency signals
Percent; Q1 2026 compared with Q2 2026
Source: Nu Holdings 2Q26 results.
Early delinquencies declined to 4.8%. The percentage of loans overdue by over 90 days increased to 6.9% from 6.5%.
Management attributed the rise to both targeted risk expansion and seasonal migration. The credit portfolio expanded by 37% to reach $39.4 billion.
Rising customer numbers provide another counterbalance. Nu gained approximately four million new users during the quarter, while monthly active participation climbed to 83.5%.
Nu traded at a trailing price-to-earnings ratio of 19.81. Itaú Unibanco Holding S.A. (NYSE:ITUB) had a P/E multiple of 9.55. Inter & Co, Inc. (NASDAQ:INTR) was priced at 8.11 times earnings. MercadoLibre, Inc. (NASDAQ:MELI) remained the growth outlier with a ratio of 52.68.
Nu carries a bank premium
Trailing price-to-earnings ratio
As of September 1, 2026, 07:43 EDT. Source: Google Finance. Business mixes differ.
Analysts keep a positive outlook, but projections differ significantly. Out of nine ratings, six were Buys, with an average target price of $17.47.
Wall Street leans Buy, but targets span $10 to $23
Nine ratings and nine 12-month price targets
Ratings from the past three months; market price as of 07:36 EDT. Source: Google Finance.
Risks: An acceleration in unsecured lending may increase losses once seasonal support wanes. Exchange rate fluctuations and expenses linked to Mexico expansion could also compress reported returns.
The opening volume on Tuesday will challenge the premium. If it drops under Friday’s $14.30 close, Monday’s recovery would be wiped out.
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