Nu Holdings (NU) Delivers Record $1.1 Billion Profit in Q2 2026
Key Takeaways
- Nu Holdings reported second-quarter 2026 net income of $1.1 billion, its first quarter above $1 billion, up 49% year over year on a foreign-exchange-neutral (FXN) basis.
- Gross revenue reached nearly $5.9 billion, up 39% year over year on an FXN basis, while reported revenue of $5.88 billion came in above the roughly $5.39 billion consensus estimate.
- Adjusted earnings per share (EPS) of $0.20 were essentially in line with consensus expectations near $0.20.
- The customer base grew by about 4 million during the quarter to 139 million globally, with Brazil nearing 118 million customers.
- Net interest margin (NIM) expanded to 22.9%, and risk-adjusted NIM climbed to 12.4%, while the efficiency ratio normalized to 19.5%.
Earnings Context and Why It Matters
Nu Holdings, the parent of Nubank, entered this report under scrutiny after its first-quarter 2026 results missed some Wall Street expectations. The second quarter matters because it tests whether the company can keep scaling customer acquisition while converting engagement into stronger profitability. With roughly 30% of Brazilians now using Nu as their primary bank and expansion underway in Mexico and Colombia, investors are focused on margin trends, credit quality, and operating leverage. The report also reflects a broader strategic shift from pure user growth toward deepening relationships and cross-selling higher-margin products, making these results an important signal for the digital bank's next phase.
Breaking Down the Q2 Numbers
Nu reported second-quarter 2026 net income of $1.1 billion, up 17% sequentially and 49% year over year, marking the first time quarterly profit has exceeded $1 billion. Gross revenue reached nearly $5.9 billion, up 39% year over year on an FXN basis. Reported revenue of $5.88 billion topped the consensus estimate of about $5.39 billion, while adjusted EPS of $0.20 was essentially in line with expectations. Net revenue surpassed $4 billion for the first time, reaching $4.1 billion, up 8% from the prior quarter.
Profitability strengthened across key metrics. Net interest income (NII) rose 9% sequentially to $3.7 billion, and NIM expanded 180 basis points to 22.9%. Cost of credit declined 9% sequentially to $1.7 billion, helping risk-adjusted NIM climb 290 basis points to 12.4% from 9.5% in the first quarter. Gross profit reached $2.4 billion, up 43% year over year and 25% sequentially. Return on equity (ROE) hit a record 33%, while the efficiency ratio rose to 19.5% from 17.6% in the first quarter, which management attributed to timing shifts and continued international investment. I also checked comparable financial names using Tickeron’s AI Screener to put these margin trends in industry context.
On the balance sheet, the credit portfolio reached $39.4 billion, up 37% year over year on an FXN basis, and total deposits reached $45.3 billion, up 18% year over year. Customer engagement improved as average revenue per active customer (ARPAC) rose to about $17 and the monthly activity rate reached 83.5%. Asset quality showed a mixed seasonal pattern: the 15–90 day non-performing loan (NPL) ratio improved 16 basis points to 4.8%, while the 90+ day NPL ratio increased 35 basis points to 6.9%.
Market Reaction and Investor Sentiment
Nu shares closed at $13.93 on August 13, up 2.7% from the prior close of $13.56, and continued higher in after-hours trading, reaching about $15.14 according to Investing.com coverage. The positive tone reflected investor focus on record profitability, margin expansion, and continued customer growth rather than the expected normalization in the efficiency ratio. The stock remains below its 52-week high of $18.98, and sentiment heading into the print had shown some caution after the first-quarter miss, with several EPS estimates trimmed in the preceding 60 days. The after-hours move suggests the market read the second quarter as evidence that the earlier stumble was temporary and that the company's profitability trajectory remains intact.
Forward Outlook and Key Factors to Monitor
Management reiterated its expectation for a full-year efficiency ratio of about 20%, implying that the second-quarter level, rather than the unusually low 17.6% reported in the first quarter, is the more representative run rate. Executives also indicated that risk-adjusted NIM should remain around the current 12.4% level for the foreseeable future, supported by the mix shift toward unsecured lending and the seasonal normalization of credit costs.
The company's recent strategic moves broaden the watchlist. Nu launched its bank in Mexico earlier in August, becoming the largest digital bank in the country with 16 million customers, and is adding a full banking license in Brazil. The rollout of Croma for higher-income Super Core customers and the use of NuFormer, the company's AI foundation model for financial behavior, are longer-term catalysts for cross-selling and efficiency. From what I see, these initiatives could support further operating leverage if execution stays on track.
Key risk factors to monitor include the 90+ day NPL ratio, which rose 35 basis points to 6.9% as early delinquencies migrated, and competitive pressure in Brazil's digital financial market. Deposit growth, funding costs, and the pace of international investment will also shape how quickly the company can sustain operating leverage while funding expansion.
AI Tools in My Research Process
One tool I’ve found helpful for this kind of analysis is Tickeron’s AI Screener. It lets me filter stocks and ETFs by technical patterns, fundamentals, and AI signals to quickly spot how names like NU stack up against peers and identify emerging trends without manual screening.
Disclaimer
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Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
NU sees MACD Histogram crosses below signal line
NU saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 11, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 39 instances where the indicator turned negative. In 28 of the 39 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 72%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on NU as a result. In 49 of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 64%.
NU moved below its 50-day moving average on September 15, 2026 date and that indicates a change from an upward trend to a downward trend.
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 66%.
NU broke above its upper Bollinger Band on September 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +8.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where NU advanced for three days, in 227 of 295 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
The Aroon Indicator entered an Uptrend today. In 236 of 272 cases where NU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 87%.
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 58 (best 1 - 100 worst), indicating fairly steady 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 89 (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 96 (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 (4.978) is very high in comparison to the industry average of (1.350). P/E Ratio (18.589) is within average values for comparable stocks, (24.712). Projected Growth (PEG Ratio) (0.629) is also within normal values, averaging (1.190). NU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (5.149) is also within normal values, averaging (3.749).
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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