NU (NYSE:NU) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

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

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 Trading Down 5.2%

Shares of NYSE:NU traded down $0.67 on Friday, hitting $12.26. 138,778,740 shares of the company’s stock were exchanged, compared to its average volume of 38,981,576. The stock has a market capitalization of $59.53 billion, a price-to-earnings ratio of 18.86, a price-to-earnings-growth ratio of 0.52 and a beta of 1.01. NU has a 12 month low of $11.71 and a 12 month high of $18.98. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.58 and a quick ratio of 0.58. The business’s 50 day simple moving average is $14.31 and its two-hundred day simple moving average is $15.89.

Insider Buying and Selling

In related news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the firm’s stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $14.81, for a total value of $4,443,000.00. Following the transaction, the chief executive officer owned 2,312,338 shares of the company’s stock, valued at $34,245,725.78. This trade represents a 11.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 1.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NU

Large investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd increased its position in shares of NU by 14,810.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company’s stock worth $25,000 after acquiring an additional 1,481 shares during the period. Zions Bancorporation National Association UT bought a new stake in NU during the 4th quarter valued at $27,000. Hollencrest Capital Management purchased a new stake in shares of NU in the 4th quarter worth $33,000. EverSource Wealth Advisors LLC lifted its holdings in shares of NU by 63.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,768 shares of the company’s stock worth $52,000 after buying an additional 1,464 shares during the period. Finally, Brown Brothers Harriman & Co. grew its position in shares of NU by 61.4% during the 4th quarter. Brown Brothers Harriman & Co. now owns 3,260 shares of the company’s stock worth $55,000 after buying an additional 1,240 shares in the last quarter. 84.02% of the stock is owned by hedge funds and other institutional investors.

Key NU News

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 Ratings Changes

Several equities research analysts have recently weighed in on the stock. Zacks Research downgraded shares of NU from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 24th. Susquehanna upped their price target on shares of NU from $19.00 to $22.00 and gave the company a “positive” rating in a report on Tuesday, January 27th. Itau BBA Securities reissued an “outperform” rating on shares of NU in a research report on Tuesday, March 17th. UBS Group raised shares of NU from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $17.20 to $17.60 in a research note on Thursday, March 19th. Finally, Weiss Ratings lowered NU from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday. Eleven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, NU presently 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.