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NU Stock Falls 5.7% Since Missing Q1 Earnings, Revenues In Line
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Key Takeaways
NU added nearly 4 million customers in Q1, lifting its global base to 135.2 million users.
NU reported record quarterly revenues of $4.97B as credit growth and monetization improved.
Nubank expanded AI tools across lending and customer services while boosting efficiency metrics.
Nu Holdings Ltd. (NU - Free Report) reported first-quarter 2026 earnings per share of 19 cents, which missed the Zacks Consensus Estimate of 20 cents but increased 58.3% from the year-ago quarter.
Revenues, as per Accounting Profit and Loss (P&L), rose 53% year over year to a record $4.97 billion, matching the consensus mark.
Revenues, per Managerial P&L, increased 57.6% year over year to a record $5.32 billion.
During the fourth quarter of 2025, NU introduced its Managerial P&L, a structural, complementary reorganization of IFRS line items, in its disclosure framework to enhance comparability for external assurance.
The stock has declined 5.7% since the release of results on May 14 due to weak quarterly earnings performance and low investor confidence.
Nu Holdings Ltd. Price, Consensus and EPS Surprise
However, the quarter reflected continued customer growth, rising monetization and strong credit portfolio expansion. NU ended the quarter with more than 135 million customers globally, while the monthly average revenue per active customer reached nearly $16.
NU Sees Strong Customer Growth Across Markets
Nu Holdings added nearly 4 million customers in the first quarter, taking its global customer base to 135.2 million. Brazil remained the company’s largest market, with the customer base surpassing 115 million. Mexico crossed 15 million customers and became the third-largest financial institution in that market.
Customer engagement remained stable despite seasonal softness. The activity rate held at 83.4%, while Brazil continued to approach 100 million active customers. Monthly average revenue per active customer climbed 23% year over year to $15.9, reflecting improved monetization across the platform.
Nubank Expands Credit Portfolio & Deposits
Nubank’s total credit portfolio increased 40% year over year and 7% sequentially to $37.2 billion. Credit card balances grew 36%, unsecured lending expanded 53% and secured lending rose 38% from the prior-year quarter.
Total deposits reached $42.4 billion, up 22% year over year. The company noted that deposits in Mexico declined sequentially because of seasonal year-end outflows and efforts to optimize funding costs. The loan-to-deposit ratio increased to 58.3% from 49.1% in the fourth quarter of 2025 as lending growth continued to outpace deposits.
NU’s Profitability Benefits From Revenue Growth
Net interest income increased 12% sequentially to a record $3.25 billion as the credit portfolio expanded faster than liabilities. Total revenues surpassed $5 billion for the first time in the company’s history.
Gross profit increased 27% year over year to $1.88 billion. Net income rose 41% year over year to $871.4 million. Return on equity was 29% compared with 27% in the year-ago quarter.
The efficiency ratio improved to 17.6% from 21.4% a year ago, aided by operating leverage, AI-driven productivity gains and software platform consolidation. Per management, part of the improvement reflected temporary timing benefits tied to marketing and real estate spending.
Nubank Navigates Seasonal Credit Pressures
Nubank’s 15-90-day non-performing loan ratio rose to 5% from 4.1% in the prior quarter, reflecting normal first-quarter seasonality, portfolio growth and expansion into higher-risk segments. However, the 90-plus-day delinquency ratio improved to 6.5% from 6.6% in this quarter.
Credit loss allowance increased 33% sequentially to $1.79 billion. Management attributed the increase primarily to portfolio growth and seasonal patterns rather than deterioration in underlying asset quality. Risk-adjusted net interest margin declined 100 basis points sequentially to 9.5%.
NU highlighted the resilience of its underwriting model, stating that its short-duration lending portfolio allows the company to react quickly to changes in asset quality trends.
NU Advances AI Transformation Strategy
NU continued to expand its AI capabilities during the quarter. The company’s AI Private Banker functionalities serve more than 15 million monthly active users. Its proprietary NuFormer foundation models are being used for credit card decision-making in Brazil and Mexico, as well as unsecured lending in Brazil.
Per management, engineering throughput increased more than 50% year over year, while testing cycles were 90% faster. The company expects AI-native customer experiences to roll out further during 2026 as it rebuilds customer workflows around automation and predictive decision-making.
Nubank Maintains Expansion & Efficiency Focus
Nubank reiterated plans to continue investing in international expansion and AI infrastructure while maintaining disciplined expense management. The company expects its full-year 2026 efficiency ratio to remain around 20%, broadly in line with year-end 2025 levels.
Management emphasized a measured approach to expand in the United States. The company expects investments tied to the initiative to remain below 100 basis points of the consolidated efficiency ratio annually through 2027.
NU’s long-term strategy remains centered on deepening penetration in Brazil, scaling operations in Mexico and Colombia, and leveraging AI to improve customer engagement and profitability across the platform.
ACN’s earnings were $2.93 per share, which beat the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2026 results, with earnings and revenues outpacing the Zacks Consensus Estimate.
ADP’s earnings per share of $3.37 beat the consensus estimate by 2.7% and increased 10.1% from the year-ago quarter. Total revenues of $5.94 billion surpassed the consensus estimate by 1.4% and grew 7% on a year-over-year basis.
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NU Stock Falls 5.7% Since Missing Q1 Earnings, Revenues In Line
Key Takeaways
Nu Holdings Ltd. (NU - Free Report) reported first-quarter 2026 earnings per share of 19 cents, which missed the Zacks Consensus Estimate of 20 cents but increased 58.3% from the year-ago quarter.
Revenues, as per Accounting Profit and Loss (P&L), rose 53% year over year to a record $4.97 billion, matching the consensus mark.
Revenues, per Managerial P&L, increased 57.6% year over year to a record $5.32 billion.
During the fourth quarter of 2025, NU introduced its Managerial P&L, a structural, complementary reorganization of IFRS line items, in its disclosure framework to enhance comparability for external assurance.
The stock has declined 5.7% since the release of results on May 14 due to weak quarterly earnings performance and low investor confidence.
Nu Holdings Ltd. Price, Consensus and EPS Surprise
Nu Holdings Ltd. price-consensus-eps-surprise-chart | Nu Holdings Ltd. Quote
However, the quarter reflected continued customer growth, rising monetization and strong credit portfolio expansion. NU ended the quarter with more than 135 million customers globally, while the monthly average revenue per active customer reached nearly $16.
NU Sees Strong Customer Growth Across Markets
Nu Holdings added nearly 4 million customers in the first quarter, taking its global customer base to 135.2 million. Brazil remained the company’s largest market, with the customer base surpassing 115 million. Mexico crossed 15 million customers and became the third-largest financial institution in that market.
Customer engagement remained stable despite seasonal softness. The activity rate held at 83.4%, while Brazil continued to approach 100 million active customers. Monthly average revenue per active customer climbed 23% year over year to $15.9, reflecting improved monetization across the platform.
Nubank Expands Credit Portfolio & Deposits
Nubank’s total credit portfolio increased 40% year over year and 7% sequentially to $37.2 billion. Credit card balances grew 36%, unsecured lending expanded 53% and secured lending rose 38% from the prior-year quarter.
Total deposits reached $42.4 billion, up 22% year over year. The company noted that deposits in Mexico declined sequentially because of seasonal year-end outflows and efforts to optimize funding costs. The loan-to-deposit ratio increased to 58.3% from 49.1% in the fourth quarter of 2025 as lending growth continued to outpace deposits.
NU’s Profitability Benefits From Revenue Growth
Net interest income increased 12% sequentially to a record $3.25 billion as the credit portfolio expanded faster than liabilities. Total revenues surpassed $5 billion for the first time in the company’s history.
Gross profit increased 27% year over year to $1.88 billion. Net income rose 41% year over year to $871.4 million. Return on equity was 29% compared with 27% in the year-ago quarter.
The efficiency ratio improved to 17.6% from 21.4% a year ago, aided by operating leverage, AI-driven productivity gains and software platform consolidation. Per management, part of the improvement reflected temporary timing benefits tied to marketing and real estate spending.
Nubank Navigates Seasonal Credit Pressures
Nubank’s 15-90-day non-performing loan ratio rose to 5% from 4.1% in the prior quarter, reflecting normal first-quarter seasonality, portfolio growth and expansion into higher-risk segments. However, the 90-plus-day delinquency ratio improved to 6.5% from 6.6% in this quarter.
Credit loss allowance increased 33% sequentially to $1.79 billion. Management attributed the increase primarily to portfolio growth and seasonal patterns rather than deterioration in underlying asset quality. Risk-adjusted net interest margin declined 100 basis points sequentially to 9.5%.
NU highlighted the resilience of its underwriting model, stating that its short-duration lending portfolio allows the company to react quickly to changes in asset quality trends.
NU Advances AI Transformation Strategy
NU continued to expand its AI capabilities during the quarter. The company’s AI Private Banker functionalities serve more than 15 million monthly active users. Its proprietary NuFormer foundation models are being used for credit card decision-making in Brazil and Mexico, as well as unsecured lending in Brazil.
Per management, engineering throughput increased more than 50% year over year, while testing cycles were 90% faster. The company expects AI-native customer experiences to roll out further during 2026 as it rebuilds customer workflows around automation and predictive decision-making.
Nubank Maintains Expansion & Efficiency Focus
Nubank reiterated plans to continue investing in international expansion and AI infrastructure while maintaining disciplined expense management. The company expects its full-year 2026 efficiency ratio to remain around 20%, broadly in line with year-end 2025 levels.
Management emphasized a measured approach to expand in the United States. The company expects investments tied to the initiative to remain below 100 basis points of the consolidated efficiency ratio annually through 2027.
NU’s long-term strategy remains centered on deepening penetration in Brazil, scaling operations in Mexico and Colombia, and leveraging AI to improve customer engagement and profitability across the platform.
Currently, NU carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Accenture plc (ACN - Free Report) reported impressive second-quarter fiscal 2026 results.
ACN’s earnings were $2.93 per share, which beat the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2026 results, with earnings and revenues outpacing the Zacks Consensus Estimate.
ADP’s earnings per share of $3.37 beat the consensus estimate by 2.7% and increased 10.1% from the year-ago quarter. Total revenues of $5.94 billion surpassed the consensus estimate by 1.4% and grew 7% on a year-over-year basis.