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The Zacks Consensus Estimate for first-quarter earnings per share stands at 20 cents, indicating 66.7% year-over-year growth. The consensus estimate for revenues is $4.97 billion, suggesting nearly 53% year-over-year growth. There have been no revisions in the to-be-reported quarter's earnings estimate in the past 30 days.
Image Source: Zacks Investment Research
The company has a strong history of earnings surprises. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, with the average earnings surprise being 6.7%.
Q1 Earnings Beat Seems Unlikely for NU
Our proven model does not conclusively predict an earnings beat for NU this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
We expect the company’s top line to improve significantly year over year in the to-be-reported quarter, driven by strong customer growth and expanding market adoption. We anticipate active customers to increase approximately 15% year over year during the quarter. Additionally, NU’s low-cost operating platform and solid revenue momentum are expected to support bottom-line growth in the reported period.
Stock Declining, Valuation Still Elevated
NU’s stock has declined 21% over the past three months, significantly underperforming the industry’s 3% decline during the same period.
Image Source: Zacks Investment Research
However, despite the sharp correction, the stock’s valuation is yet to move to a discount relative to the industry. Based on the forward 12-month Price/Earnings ratio, NU currently trades at 14.2X forward earnings, notably above the industry average of 10.5X.
> Image Source: Zacks Investment Research
A Strong Business Model is an Investment Catalyst
NU’s digital-first, scalable model is built for efficiency. Its flagship platform, NuBank, has not only disrupted the dominance of traditional banks, particularly in Brazil, but also earned a reputation as one of Latin America’s most trusted financial brands. With ongoing expansion in Mexico and Colombia, NU is positioning itself as a regional powerhouse. Its ability to offer low-cost, user-friendly financial services is unlocking access across underserved markets and fueling further growth.
While Nu Holdings continues to surge ahead in Latin America, U.S.-based peers like SoFi Technologies (SOFI - Free Report) and Block (XYZ - Free Report) are pursuing different growth paths. SoFi is focusing on deepening customer relationships through bundled financial services such as lending, investing, and banking. Its strategy seems to emphasize lifetime value over rapid user expansion. Meanwhile, Block is sharpening its dual ecosystem approach, serving both individual users through Cash App and small businesses via Square.
While both SoFi and Block are evolving steadily, NU’s pace and scale of customer acquisition in emerging markets underscore a distinct momentum that sets it apart in the global fintech landscape.
Hold NU Stock Ahead of Earnings
NU continues to demonstrate strong customer growth, expanding market penetration, and solid revenue momentum, reinforcing confidence in its long-term fintech opportunity across Latin America. The company’s scalable digital banking model and growing regional presence remain key strengths heading into first-quarter results. However, despite the recent pullback, NU still trades at a noticeable premium to the industry average, suggesting that much of its growth optimism may already be reflected in the valuation. Given the balance between strong fundamentals and elevated valuation, NU appears best suited as a hold ahead of earnings.
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Should You Grab Nu Holdings Stock Ahead of Q1 Earnings Report?
Key Takeaways
Nu Holdings Ltd. (NU - Free Report) will report its first-quarter 2026 results on May 14, after the bell.
The Zacks Consensus Estimate for first-quarter earnings per share stands at 20 cents, indicating 66.7% year-over-year growth. The consensus estimate for revenues is $4.97 billion, suggesting nearly 53% year-over-year growth. There have been no revisions in the to-be-reported quarter's earnings estimate in the past 30 days.
The company has a strong history of earnings surprises. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, with the average earnings surprise being 6.7%.
Q1 Earnings Beat Seems Unlikely for NU
Our proven model does not conclusively predict an earnings beat for NU this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
NU has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Customer Expansion Likely to Be NU’s Driver in Q1
We expect the company’s top line to improve significantly year over year in the to-be-reported quarter, driven by strong customer growth and expanding market adoption. We anticipate active customers to increase approximately 15% year over year during the quarter. Additionally, NU’s low-cost operating platform and solid revenue momentum are expected to support bottom-line growth in the reported period.
Stock Declining, Valuation Still Elevated
NU’s stock has declined 21% over the past three months, significantly underperforming the industry’s 3% decline during the same period.
However, despite the sharp correction, the stock’s valuation is yet to move to a discount relative to the industry. Based on the forward 12-month Price/Earnings ratio, NU currently trades at 14.2X forward earnings, notably above the industry average of 10.5X.
A Strong Business Model is an Investment Catalyst
NU’s digital-first, scalable model is built for efficiency. Its flagship platform, NuBank, has not only disrupted the dominance of traditional banks, particularly in Brazil, but also earned a reputation as one of Latin America’s most trusted financial brands. With ongoing expansion in Mexico and Colombia, NU is positioning itself as a regional powerhouse. Its ability to offer low-cost, user-friendly financial services is unlocking access across underserved markets and fueling further growth.
While Nu Holdings continues to surge ahead in Latin America, U.S.-based peers like SoFi Technologies (SOFI - Free Report) and Block (XYZ - Free Report) are pursuing different growth paths. SoFi is focusing on deepening customer relationships through bundled financial services such as lending, investing, and banking. Its strategy seems to emphasize lifetime value over rapid user expansion. Meanwhile, Block is sharpening its dual ecosystem approach, serving both individual users through Cash App and small businesses via Square.
While both SoFi and Block are evolving steadily, NU’s pace and scale of customer acquisition in emerging markets underscore a distinct momentum that sets it apart in the global fintech landscape.
Hold NU Stock Ahead of Earnings
NU continues to demonstrate strong customer growth, expanding market penetration, and solid revenue momentum, reinforcing confidence in its long-term fintech opportunity across Latin America. The company’s scalable digital banking model and growing regional presence remain key strengths heading into first-quarter results. However, despite the recent pullback, NU still trades at a noticeable premium to the industry average, suggesting that much of its growth optimism may already be reflected in the valuation. Given the balance between strong fundamentals and elevated valuation, NU appears best suited as a hold ahead of earnings.