Nu Holdings Ltd

Fintech stocks are gaining investor attention as financial services increasingly go digital. Interactive Brokers Group Inc. IBKR, Nu Holdings Ltd. NU and Visa Inc. V are highlighted as companies positioned to benefit from this trend. Interactive Brokers carries a Zacks Rank #1 (Strong Buy), with the Zacks Consensus Estimate for its 2026 sales and EPS implying year-over-year growth of 18% and 22.8%, respectively. Nu Holdings added roughly 4 million customers in the second quarter of 2026, bringing its global customer base to 139 million, and its 2026 sales and EPS are expected to jump 42% and 38.7% year over year. Visa's fiscal 2026 sales and EPS are projected to grow 14.6% and 14.7%, respectively, and the company carries a Zacks Rank of 3.

Nu Holdings added 4 million customers last quarter, bringing its total to 139 million users, with 118 million in Brazil. The Latin American digital bank reported second-quarter revenue of $5.9 billion, up 39% year over year on a currency-neutral basis, while net income surged 49% to nearly $1.1 billion, exceeding $1 billion for the first time. Monthly average revenue per active customer rose 22% to $17.10, and the deposit base grew from $18 billion a year earlier to $45.3 billion. The company's efficiency ratio improved to 20% from 50% four years ago, and non-performing loans stood at 6.9% as of June 30. Shares trade at a forward price-to-earnings ratio of about 20, down 23% from their January peak.

Nu Holdings reported record net income of $1.1 billion in the second quarter of 2026, the first time the company has exceeded $1 billion, up 17% from the prior quarter and 49% year over year. Gross revenue reached nearly $5.9 billion, up 39% year over year, while net revenues surpassed $4 billion for the first time at $4.1 billion. The company's risk-adjusted net interest margin expanded to a record 12.4% from 9.5%, driven by strong credit income and lower cost of credit, and return on equity sustained a record 33%. Customer base grew to 139 million, with activity rate expanding to 83.5% and ARPAC reaching $17. The company also highlighted the approval of its Mexico banking license, enabling full-scale digital bank operations, and the launch of its AI platform NuFormer, which improved underwriting efficiency by reducing fine-tuning data needs by 95%.

Nu Holdings shares opened 13% higher on Friday after the Brazilian fintech reported second-quarter results that crushed Wall Street estimates. IFRS revenues rose 50% year-over-year to $5.51 billion, while adjusted earnings jumped 66% to $0.22 per diluted share, beating the average analyst expectation of $0.20 per share on revenue near $5.39 billion. The company added 4 million customers during the quarter, bringing its global client count to 139 million, up from 122.7 million a year earlier, with customer growth soaring 31.7% in Mexico and 55.9% in Colombia. Payment volume rose 30.3% year over year, more than doubling the 13.3% customer growth, and return on equity held steady at 33% with an efficiency ratio of 19.5%. The real headline came from Mexico, where regulators granted Nu a full banking license two weeks ago, making Nubank the largest digital bank in a country where 85% of people still prefer cash, and CEO David Vélez said Mexican operations reached breakeven in six years versus eight in Brazil. Nu is also planning U.S. services, with management discussing the upcoming launch and AI's role in building North American operations, and expects to spend 12 to 30 months building out its U.S. credit capabilities after launch.

Stock futures were largely unchanged early Friday as investors weighed cooling inflation data and a fresh batch of tech earnings. Reddit shares jumped 12% after S&P Dow Jones Indices said the company will replace AvalonBay Communities in the S&P 500 before trading opens on August 18. Nu Holdings gained 9% after the Brazilian digital bank reported stronger-than-expected second-quarter results, with revenue up 56% year-over-year to $5.88 billion and GAAP EPS of $0.22. Globant plunged 13% after posting adjusted EPS below expectations and signaling continued pressure on revenue growth, while Applied Materials slipped 5% despite beating fiscal third-quarter estimates as investors sought a stronger upside surprise after the stock's nearly 98% year-to-date gain.

Nu Holdings Ltd. reported quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.20 per share and marking a 10% earnings surprise. Revenue came in at $5.51 billion for the quarter ended June 2026, surpassing the consensus estimate by 1.08% and up from $3.67 billion a year earlier. The company has topped consensus EPS estimates three times in the last four quarters. Nu shares have lost about 19% since the beginning of the year, while the S&P 500 has gained 13.2%. Ahead of the release, estimate revisions were unfavorable, translating into a Zacks Rank of 4, or Sell.

Nu Holdings Ltd. reported a second-quarter profit of $1.060 billion, or $0.2162 per share, up from $636.84 million, or $0.1300 per share, in the same period last year. Revenue for the quarter rose 50.3% to $5.513 billion from $3.668 billion a year earlier.

Nubank has agreed to acquire Banco Porto Real to obtain a full Brazilian banking license. The transaction is subject to regulatory approval and would give Nubank additional regulatory flexibility in Brazil without changing its app or user experience for its 115 million local customers. Banco Porto Real is a wholesale credit bank, and the key asset is its full banking license, which helps Nubank comply with Brazil's Joint Resolution No. 17 without adding new capital or liquidity requirements. The move could support new product design, more flexible funding, and stronger competition with traditional banks like Itaú Unibanco and Banco Bradesco, though it also adds regulatory and operational complexity. Investors will watch for approval conditions and how Nubank uses the license to adjust its funding mix or lending, especially given its existing 7.9% bad-loan ratio.

OpenAI has appointed Bank of New York Mellon CEO Robin Vince and Nubank CEO David Vélez to its for-profit and nonprofit boards. The move brings financial services expertise to the company as it considers an initial public offering as soon as 2027. OpenAI’s board chair Bret Taylor said both leaders have used technology to reshape financial services at global scale. Other board members include Quora CEO Adam D’Angelo, retired US Army General Paul Nakasone, and OpenAI CEO Sam Altman.

Three U.S.-listed stocks trading below $50—SoFi Technologies, Nu Holdings, and Pinterest—are highlighted for their double-digit revenue growth and constructive Wall Street consensus. SoFi Technologies posted record loan originations of $12.18 billion, up 68%, with Q1 2026 revenue of $1.10 billion and GAAP net income more than doubling to $166.7 million. Nu Holdings grew revenue 58% to $4.97 billion, serving 135 million customers across Latin America, and trades at a forward P/E of 19. Pinterest beat Q1 EPS estimates by 25% with revenue of $1.01 billion, 631 million global monthly active users, and a forward P/E of 13 against mid-teens revenue growth.

Argentina's social commerce market is projected to grow from $27.13 billion in 2025 to $45.71 billion by 2031, at an annual rate of 8.6%, according to a report from Research and Markets. The report provides over 50 key performance indicators covering platforms, payment methods, and consumer segments, highlighting opportunities in both domestic and cross-border digital transactions.

Nu Holdings, the parent of digital banking platform Nubank, plans to invest $4.2 billion to expand its business in Mexico over the next four years. The plan was announced after Nubank executives met with Mexican President Claudia Sheinbaum. In the first phase, the bank will focus on expanding operational capabilities and rolling out new banking services, deploying $2.5 billion toward capital expenditures. Nubank secured a license in April to expand lending, banking, and deposit products in Mexico. The company serves roughly 135 million customers across Brazil, Mexico, and Colombia.

Nu and OneMain present contrasting investment cases for 2026, with Nu offering high-growth digital banking in Latin America and OneMain providing steady dividends from U.S. nonprime lending. Nu reported fiscal 2025 revenue of nearly $16.2 billion, a 45% increase, and net income of close to $2.9 billion, while OneMain posted revenue of close to $6.2 billion, up 9.1%, and net income of approximately $783 million. Nu's forward P/E of 15.9 times reflects its growth premium, compared to OneMain's 8.3 times, and OneMain offers a 7% dividend yield with a 62.3% payout ratio. Nu faces emerging-market risks and competition from Itaú Unibanco and Banco Bradesco, while OneMain contends with regulatory scrutiny and a lawsuit from the New York Attorney General. The analysis favors Nu for growth investors despite higher valuations, while acknowledging OneMain's appeal for income-focused portfolios.

Nubank has become the primary financial institution for roughly 30% of Brazilians across all regions, according to a Bain & Company survey for the fourth quarter of 2025. The digital bank now serves 31.5 million people, equivalent to nearly one in five adults in the country. Primary incidence reached 34% in the North and 31% in the Northeast, while no state fell below 23%. The study also found that Nubank's credit operations reached 6.8% of GDP in the Northeast, and customers saved an estimated R$ 134.7 billion in fees and charges through 2025.

Nu Holdings' average revenue per active customer, or ARPAC, rose from $7 in the first quarter of 2022 to $16 in the first quarter of 2026, reflecting a 24% FX-neutral compound annual growth rate. This indicates the company is deepening relationships with existing users through better cross-selling and product adoption, rather than relying solely on customer growth. The stock has declined 26% year to date, underperforming the industry's 11% growth, and trades at a forward price-to-earnings ratio of 12.62, above the industry average of 11.01. Nu Holdings currently carries a Zacks Rank of 3, equivalent to a Hold rating.

StockStory has identified Nubank as a profitable stock worth buying, while recommending investors avoid ArcBest and Centrus Energy. Nubank, the Latin American digital banking platform, boasts a trailing 12-month GAAP operating margin of 22.1%, annual revenue growth of 40.6% over the past two years, and earnings per share increasing 53% annually, with a stellar return on equity. In contrast, ArcBest, a freight delivery company, has a thin 2.2% operating margin, declining earnings per share of 2% annually over five years, and eroding returns on capital. Centrus Energy, a uranium supplier, operates with a modest revenue base of $452.3 million, a gross margin of 32.5%, and an EBITDA margin that fell by 38.7 percentage points over five years. Nubank trades at 13.1 times forward P/E, while ArcBest and Centrus Energy trade at 22.5 times and 38.6 times forward P/E, respectively.

Nu Holdings Ltd. approved a US$1.00 billion Class A share repurchase program over 12 months, funded from retained and future earnings, while continuing to invest in growth across Brazil, Mexico, and Colombia. The buyback was announced alongside Q1 2026 results that showed strong profitability but also higher 15-to-90-day non-performing loan ratios, highlighting the balance the company is trying to strike between capital returns, growth investment, and risk control. The repurchase itself does not materially change the near-term drivers of customer growth and credit quality, but it sharpens focus on execution as rising early-stage delinquencies in newer mass-market lending remain a key risk.

Nu Holdings and MercadoLibre are two Latin American companies with wide economic moats that investors can buy now and hold forever, according to The Motley Fool. Nu Holdings has 135 million customers across Brazil, Mexico, and Colombia, generating $12.3 billion in revenue in Brazil and $950 million in Mexico over the last 12 months, with plans to expand further in Latin America and the United States. Its stock is down 32% from its high, trading at a price-to-earnings ratio of 20. MercadoLibre operates in 18 countries, with revenue growing 4,400% over the past decade to $31.8 billion over the last 12 months, and its stock has fallen 37% from highs due to margin compression from investments in fulfillment and credit cards. Both companies are seen as dominant in their sectors, with Nu Holdings disrupting legacy banking through a mobile-first strategy and MercadoLibre building an e-commerce and payments ecosystem similar to Amazon.

Nu Holdings has three catalysts that could drive its stock higher this year after a 22% drop in 2026. The Brazil-based digital bank is pursuing full bank charters in Brazil and Mexico, which would allow it to offer more products and deepen engagement with its 135 million users, including 115 million in Brazil where it is already the largest private financial institution. It also received a conditional bank charter to operate in the United States, opening a market of 342 million people, and has partnered with Inter Miami CF to build its brand. Additionally, its proprietary AI model Nuformer reduced credit risk by 70% for the same population, contributing to a 40% year-over-year increase in its credit book while keeping write-offs steady at 2.8% to 2.9%.

Nu Holdings shares rose 1.34% to close at $12.89, outperforming a down day for fintech peers. The Latin American digital bank drew investor attention for its AI-powered credit platform, NuFormer, which is used in credit-card decisioning and unsecured lending. The broader market declined, with the S&P 500 falling 1.21% and the Nasdaq Composite dropping 1.34%, while SoFi Technologies fell 1.64% and Block dropped 2.46%. Investors are focused on whether Nu can sustain profitable growth as it sets aside more for potential credit losses and faces pressure on its risk-adjusted net interest margin.

Nubank shares climbed 3.2% in afternoon trading after the Brazilian digital bank unveiled two AI-powered financial models. The company introduced NuFormer, an AI assistant for credit and spending management, and AI Private Banking, a future suite of personalized tools. Investor sentiment also drew support from expectations that Brazil’s central bank would cut the Selic rate by 0.25 percentage points to 14.25% on Super Wednesday, a move that could ease consumer debt burdens and loan-default risks for the credit-focused lender. The US Federal Reserve was widely expected to hold rates at 3.5%–3.75%, a less hawkish outcome that further buoyed emerging-market names like Nubank. The stock later pared gains to $12.89, up 1.3% from the prior close, after having absorbed a wave of analyst target cuts from Citi, BofA, Susquehanna, and Scotiabank in recent weeks.