NU (NYSE:NU) Shares Gap Up on Strong Earnings

Key Points

• Nu Holdings beat expectations: The company reported quarterly EPS of $0.22 versus the $0.20 consensus estimate and revenue of $5.88 billion, above expectations of $5.39 billion. Net profit surpassed $1 billion for the first time.
• Shares surged: NU opened at $15.74 after closing at $13.93 and was recently trading around $15.79, up 10.9%, on heavy volume following the earnings report.
• Analyst sentiment is broadly positive but risks remain: Needham upgraded the stock to “buy” and raised its target to $19, while MarketBeat’s consensus rating is “Moderate Buy” with a $17.41 average target. Investors continue to monitor credit quality, rising provisions and expenses as the company grows.

Shares of Nu Holdings Ltd. (NYSE:NU - Get Free Report) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $13.93, but opened at $15.74. NU shares last traded at $15.7890, with a volume of 48,412,171 shares changing hands.

The company reported $0.22 EPS for the quarter. NU had a return on equity of 30.91% and a net margin of 18.20%.The firm had revenue of $5.88 billion during the quarter.

NU announced that its board has initiated a stock buyback plan on Thursday, June 4th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Key Headlines Impacting NU

Here are the key news stories impacting NU this week:

• Positive Sentiment: Record profitability: Nu Holdings reported quarterly net profit above $1 billion for the first time, exceeding analyst expectations and helping drive investor enthusiasm. Reuters report on Nubank quarterly profit
• Positive Sentiment: Q2 earnings and revenue beats: NU delivered earnings of $0.22 per share, ahead of the $0.20 consensus estimate, while revenue of $5.88 billion exceeded expectations of $5.39 billion. Increased customer engagement supported the revenue outperformance. Seeking Alpha report on Nu Holdings Q2 results
• Positive Sentiment: Higher analyst target: Needham raised its price target for Nu Holdings from $17 to $19 and upgraded the stock to “buy.” The new target implies approximately 19.5% upside from the referenced $15.90 share price, potentially improving sentiment toward the stock. StreetInsider Needham analyst note
• Neutral Sentiment: Regulatory filing: Nu Holdings filed its routine August 2026 Form 6-K with the SEC. The filing itself does not appear to introduce a separate material catalyst beyond the company’s earnings disclosure. TipRanks report on Nu Holdings Form 6-K
• Negative Sentiment: Credit and cost risks: Before the earnings release, analysts highlighted rising provisions and expenses as potential pressure points. Investors will likely assess whether Nu can sustain rapid growth and strong margins while managing credit quality and costs. Zacks analysis of Nu Holdings before Q2 earnings

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. UBS Group lowered their price objective on NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research report on Wednesday, May 20th. Susquehanna reissued a "neutral" rating on shares of NU in a report on Friday. JPMorgan Chase & Co. raised their target price on shares of NU from $18.00 to $20.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 7th. Scotiabank downgraded shares of NU to a "sector perform" rating and set a $13.00 price target on the stock. in a report on Wednesday, June 3rd. Finally, Bank of America reiterated an "underperform" rating on shares of NU in a research report on Tuesday, June 2nd. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $17.41.

Hedge Funds Weigh In On NU

A number of hedge funds have recently made changes to their positions in NU. Morgan Stanley lifted its holdings in NU by 2.9% in the 4th quarter. Morgan Stanley now owns 121,350,701 shares of the company's stock worth $2,031,411,000 after purchasing an additional 3,419,077 shares in the last quarter. State Street Corp raised its position in shares of NU by 0.3% during the third quarter. State Street Corp now owns 91,478,395 shares of the company's stock valued at $1,464,569,000 after buying an additional 239,660 shares during the last quarter. Bank of America Corp DE raised its position in shares of NU by 8.6% during the first quarter. Bank of America Corp DE now owns 45,966,932 shares of the company's stock valued at $660,545,000 after buying an additional 3,656,945 shares during the last quarter. Norges Bank purchased a new position in shares of NU in the fourth quarter worth $763,792,000. Finally, Price T Rowe Associates Inc. MD lifted its holdings in shares of NU by 11.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 42,602,086 shares of the company's stock worth $713,160,000 after buying an additional 4,215,824 shares in the last quarter. Institutional investors own 84.02% of the company's stock.

NU Trading Up 10.9%

The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58. The stock's 50-day moving average is $13.45 and its two-hundred day moving average is $14.37. The stock has a market cap of $74.99 billion, a P/E ratio of 23.76, a price-to-earnings-growth ratio of 0.54 and a beta of 0.94.

About NU

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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