GET DAILY SIGNALSNu Holdings (NU) Delivers Record $1.1 Billion Net Income as It Expands Beyond Latin America
Key Takeaways
- Nu Holdings posted record quarterly net income of $1.1 billion, up 31% year over year (YoY) on a foreign-exchange-neutral basis.
- Earnings per share (EPS) came in at $0.22, in line with analyst consensus, while net revenue of $5.82 billion topped the roughly $5.68 billion estimate.
- Gross revenue reached a record $6.3 billion, up 37% YoY, with gross profit rising 35% to $2.6 billion.
- The efficiency ratio improved to 19.3%, and management lowered its full-year 2026 efficiency guidance to 19%–19.5%.
- The company added 3.7 million customers to reach 143 million globally and launched Nu US and Nu Global, its first steps beyond Latin America.
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Why This Quarter Matters for NU
Nu Holdings stands as the largest digital bank in Latin America, so its results provide a useful window into consumer banking trends, credit expansion, and fintech progress in Brazil, Mexico, and Colombia. The third quarter of 2026 represented a notable shift, as the company started moving outside its core region through the launches of Nu US and Nu Global while solidifying its position in Brazil, where it reaches 65% of the adult population. I was particularly interested in whether strong profitability and customer activity would hold up amid rising credit costs and a more mature lending environment, making this report a useful checkpoint on both short-term performance and the longer-term international strategy.
Breaking Down the Reported Numbers
Nu Holdings delivered record quarterly net income of $1.1 billion, up 31% YoY, with return on equity at 32%. Diluted earnings came in near $0.22 per share, matching consensus estimates. Net revenue reached $5.82 billion, ahead of the roughly $5.68 billion analyst target and well above the $4.17 billion posted a year earlier, while gross revenue hit a record $6.3 billion, up 37% YoY. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Net interest income stood at $3.9 billion with a net interest margin of 22.5%. The credit portfolio expanded 33% YoY to $41.6 billion, and deposits grew 19% to $47.5 billion. Asset quality faced some pressure, as the 90+ non-performing loan ratio moved to 7.3% from 6.9% the prior quarter. The efficiency ratio improved to 19.3%, and management now guides for a full-year 2026 efficiency ratio of 19%–19.5%, better than its earlier target near 20%. The company noted that Nu US is now available in all 50 states and Nu Global operates in 37 countries.
Market Reaction and Sentiment Around NU
Shares of Nu Holdings rose modestly in extended trading, gaining about 2% to roughly $12.07 after the release. The in-line EPS and revenue beat were seen as evidence of steady execution, though the sequential increase in the 90+ NPL ratio and the early costs of the new international businesses drew attention. The stock had experienced volatility tied to Brazil’s political and economic environment in recent weeks, and some viewed the earlier pullback as a potential entry point given the longer-term growth path. Overall, sentiment appeared constructive, with the record profit and expansion news supporting the growth story even as credit trends remained under watch.
Looking Ahead at Key Factors
Going forward, attention will center on whether Nu Holdings can maintain its efficiency improvements while absorbing the expenses of the new U.S. and global operations. Management indicated that the combined effect of Nu US and Nu Global on the efficiency ratio should stay within a commitment of up to 100 basis points in each of 2026 and 2027, giving investors a clear way to assess the near-term costs of expansion.
Credit quality will likely stay in focus. The rise in the 90+ NPL ratio to 7.3% reflects both portfolio growth and seasoning, and it will be important to see whether delinquency trends stabilize, especially as unsecured lending continues to expand quickly. Deposit costs, which declined to 87% of the interbank rate, also merit monitoring for further funding-cost relief.
Management’s updated full-year 2026 efficiency guidance of 19%–19.5% provides a concrete target. Near-term catalysts include progress in Mexico’s banking launch, customer growth in Colombia, and initial metrics from Nu US and Nu Global, all of which should help shape views on the next stage of development.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
NU's RSI Indicator recovers from oversold territory
The RSI Indicator for NU moved out of oversold territory on November 04, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 28 similar instances when the indicator left oversold territory. In 24 of the 28 cases the stock moved higher. This puts the odds of a move higher at 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 11, 2026. You may want to consider a long position or call options on NU as a result. In 66 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 82%.
Following a +5.28% 3-day Advance, the price is estimated to grow further. Considering data from situations where NU advanced for three days, in 236 of 306 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
NU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for NU turned negative on October 22, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In 23 of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at 55%.
NU moved below its 50-day moving average on October 26, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NU crossed bearishly below the 50-day moving average on October 27, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 81%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NU declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for NU entered a downward trend on November 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 5 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 74 (best 1 - 100 worst), indicating slightly worse than average price growth. NU’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 91 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 94 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NU's P/B Ratio (4.386) is very high in comparison to the industry average of (1.262). P/E Ratio (16.172) is within average values for comparable stocks, (13.479). Projected Growth (PEG Ratio) (0.563) is also within normal values, averaging (1.190). Dividend Yield (0.000) settles around the average of (0.035) among similar stocks. P/S Ratio (5.149) is also within normal values, averaging (3.738).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 56, placing this stock worse than average.
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