NU (NYSE:NU) Announces Quarterly Earnings Results

NU (NYSE:NU - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.19 earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.01), Zacks reports. The firm had revenue of $5.32 billion for the quarter, compared to analysts' expectations of $5.06 billion. NU had a return on equity of 32.46% and a net margin of 18.20%.

Here are the key takeaways from NU's conference call:

• Nu Holdings reported record first-quarter revenue of $5 billion and record net income of $871 million, with customer growth and ARPAC expansion continuing to drive earnings power.
• The company said its customer base surpassed 135 million, including 115 million in Brazil and 15 million in Mexico, while monthly activity remained strong at 83%.
• Credit metrics were described as being driven by seasonality, portfolio growth, and product mix rather than asset-quality deterioration, with management emphasizing that provisioning remained conservative and aligned with internal expectations.
• Efficiency improved to a record low 17.6% reported ratio, aided by both structural gains and timing benefits, though management still expects full-year 2026 efficiency to be around 20%.
• Management highlighted major long-term growth opportunities in Mexico, SME banking in Brazil, and the U.S., while continuing to push its AI transformation across products, underwriting, and operations.

NU Stock Down 5.2%

NU opened at $12.26 on Friday. NU has a 1-year low of $11.71 and a 1-year high of $18.98. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $59.53 billion, a price-to-earnings ratio of 18.86, a P/E/G ratio of 0.52 and a beta of 1.01. The business has a 50 day moving average of $14.31 and a 200-day moving average of $15.89.

Insider Transactions at NU

In related news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the business's stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $14.81, for a total transaction of $4,443,000.00. Following the transaction, the chief executive officer owned 2,312,338 shares of the company's stock, valued at approximately $34,245,725.78. The trade was a 11.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On NU

Hedge funds and other institutional investors have recently made changes to their positions in the business. Parallel Advisors LLC increased its holdings in shares of NU by 3.7% during the fourth quarter. Parallel Advisors LLC now owns 16,820 shares of the company's stock worth $282,000 after buying an additional 601 shares in the last quarter. Aptus Capital Advisors LLC raised its holdings in shares of NU by 3.4% in the fourth quarter. Aptus Capital Advisors LLC now owns 19,008 shares of the company's stock valued at $318,000 after buying an additional 624 shares during the last quarter. Polymer Capital Management US LLC grew its holdings in NU by 5.7% during the 4th quarter. Polymer Capital Management US LLC now owns 16,892 shares of the company's stock worth $283,000 after acquiring an additional 904 shares during the last quarter. United Capital Financial Advisors LLC increased its position in NU by 7.3% in the 3rd quarter. United Capital Financial Advisors LLC now owns 13,629 shares of the company's stock valued at $218,000 after acquiring an additional 929 shares in the last quarter. Finally, Williams Jones Wealth Management LLC. raised its stake in shares of NU by 2.0% in the fourth quarter. Williams Jones Wealth Management LLC. now owns 50,755 shares of the company's stock worth $850,000 after acquiring an additional 1,005 shares during the last quarter. 84.02% of the stock is owned by institutional investors.

NU News Roundup

Here are the key news stories impacting NU this week:

• Positive Sentiment: Revenue rose above analyst estimates, showing Nu’s core business is still growing strongly even as market sentiment turned cautious. Nu Holdings Ltd. Reports First Quarter 2026 Financial Results
• Positive Sentiment: Net income increased 41% year over year to $871 million, underscoring that Nu is still generating solid profitability despite near-term credit concerns. Nu Q1: It Seems That Investors Forgot The Competitive Advantages Of This Bank
• Positive Sentiment: Credit portfolio growth remained robust, up 40% year over year, with credit cards driving expansion and supporting the company’s longer-term growth thesis. Nu Q1: It Seems That Investors Forgot The Competitive Advantages Of This Bank
• Neutral Sentiment: Several articles and the earnings call transcript focus on Nu’s AI-driven credit expansion and its potential to create a durable banking advantage, but this remains more of a long-term debate than a near-term catalyst. Can Nu Holdings (NU) Turn AI-Driven Credit Expansion Into a Durable Global Banking Advantage?
• Negative Sentiment: EPS missed expectations, which appears to be the main reason the stock is under pressure today. Nu Shares Fall After EPS Miss Overshadows Revenue Beat
• Negative Sentiment: Investors are also reacting to higher delinquency trends, rising non-performing loans, and increased provisioning, which raised concerns about credit quality and margins. Nu Q1: It Seems That Investors Forgot The Competitive Advantages Of This Bank
• Negative Sentiment: Return on equity slipped and net interest margin declined sequentially, reinforcing worries that profitability could face pressure if credit costs stay elevated. Nu Q1: It Seems That Investors Forgot The Competitive Advantages Of This Bank

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on NU shares. Itau BBA Securities restated an "outperform" rating on shares of NU in a report on Tuesday, March 17th. Susquehanna lifted their target price on shares of NU from $19.00 to $22.00 and gave the company a "positive" rating in a research note on Tuesday, January 27th. Weiss Ratings downgraded shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday. Zacks Research downgraded shares of NU from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Finally, UBS Group raised shares of NU from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $17.20 to $17.60 in a research note on Thursday, March 19th. Eleven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, NU has an average rating of "Moderate Buy" and an average target price of $18.46.

NU Company Profile

Nu Holdings Ltd NYSE: NU, commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.

Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.