SÃO PAULO, August 15, 2026, 04:49 BRT — U.S. markets are shut for the weekend.
- Nu’s stock climbed 9.3% on Friday, trading at 2.1 times its average volume.
- Quarterly earnings surpassed expectations by 9.6% and exceeded $1 billion.
- Risk-adjusted margin increased by 290 basis points compared with the previous quarter.
Nu Holdings Ltd. NYSE:NU rose 9.3% on Friday as quarterly profit surpassed $1 billion. The stronger performance was driven by credit economics rather than just an increase in customers.
In the second quarter, risk-adjusted net interest margin climbed to 12.4%, marking an increase of 290 basis points from the first quarter. Credit costs decreased by 5.6% to $1.69 billion.
The loan portfolio increased by roughly 5% from the previous quarter to $39.4 billion. Lending activity climbed alongside a widening margin. This combination accounts for the stock’s reaction, which closely reflected the earnings surprise.
| Operating measure | First quarter 2026 | Second quarter 2026 | Sequential change |
|---|---|---|---|
| Customers | Above 135 million | Close to 139 million | Roughly +3% |
| Revenue | Over $5.0 billion | $5.88 billion | Increase; specific figure not provided |
| Net income | $871 million | $1.06 billion | +22% |
| Credit portfolio | $37.2 billion | $39.4 billion | Approximately +6% |
| Credit costs | $1.79 billion | $1.69 billion | -5.6% |
| Risk-adjusted NIM | 9.5% | 12.4% | +290 basis points |
Net income totaled $1.06 billion, marking a 49% increase from the prior year on a currency-neutral basis. The figure came in 9.6% above Visible Alpha’s $967.2 million forecast. Revenue surpassed estimates by 5%.
Rob Livingston, the Chief Financial Officer, informed analysts that the 12.4% risk-adjusted margin is “sustainable in the foreseeable future.” This outlook is considered more significant than the quarterly profit milestone. Reuters
| Market or earnings signal | Friday reading | Comparison |
|---|---|---|
| Share price | $15.23 | Rose 9.33% on Friday |
| Weekly share move | Increased from $13.84 to $15.23 | Gained 10.0% |
| Trading volume | 156.3 million shares traded | 2.11 times the average over three months |
| Net-income surprise | $1.06 billion compared to $967.2 million | 9.6% higher |
| Revenue surprise | $5.88 billion compared to $5.60 billion | 5.0% higher |
Trading volume on Friday hit 156.3 million shares, more than double the three-month average at 2.11 times, placing Nu as the most heavily traded U.S.-listed stock according to Yahoo Finance’s rankings.
The strength of the margin increase warrants examination. Brazil’s Desenrola refinancing initiative provided support, though management noted it accounted for just 5% of credit expenses. Margin gains would have improved seasonally regardless.
Early delinquencies declined to 4.8% from 5.0% in the previous period, though they stayed 30 basis points higher than a year earlier. Credit costs rose 60% compared to the same period last year.
| Analyst recommendation | Date | Price target | Move from $15.23 |
|---|---|---|---|
| JPMorgan — Buy | July 7, 2026 | $20 | +31% |
| Needham — Buy | June 26, 2026 | $17 | +12% |
| Citigroup — Hold | June 15, 2026 | $13 | -15% |
| Susquehanna — Hold | June 3, 2026 | $13 | -15% |
| BofA Securities — Sell | June 2, 2026 | $10 | -34% |
Analyst price targets show a split view. JPMorgan’s target of $20 suggests a 31% increase. BofA’s $10 target signals a 34% drop, citing worries on expenses and changes in leadership.
Nu currently has nearly 139 million customers throughout Brazil, Mexico and Colombia. Its upcoming entry into the U.S. market provides optional expansion. The move is also set to generate new spending before achieving scale.
The key test next week will be if post-earnings buying sustains above Thursday’s close of $13.93. Investors should monitor analyst estimate changes following the margin surprise.
Risks: Credit expenses are 60% higher compared to a year ago, with early delinquencies continuing to exceed last year’s levels. Margin growth could be limited by a softer Brazilian economy, currency volatility, or increased U.S. investment.
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