• In the past quarter, Nu Holdings Ltd. reported record first‑quarter 2026 results, with net income rising to US$872.06 million and basic earnings per share from continuing operations increasing to US$0.1796, alongside strong customer growth past 135 million and robust revenue expansion across Latin America.
• Despite this operational strength, the company’s slight earnings-per-share miss versus consensus and higher credit provisions in a tougher Latin American backdrop have raised fresh questions about how far Nu can continue expanding its credit portfolio while preserving margins and credit quality.
• We’ll now examine how Nu’s record Q1 profit, alongside rising credit provisions, reshapes the investment narrative that analysts had previously outlined.

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Nu Holdings Investment Narrative Recap

To own Nu Holdings, you need to believe its app based banking model can keep converting Latin American users into profitable, lower cost relationships while managing rising credit risk. Right now, the key near term catalyst is continued growth in revenue and customers without a sharp deterioration in loan quality. Q1’s record profit supports that story, but the higher provisions and soft earnings per share versus expectations slightly sharpen the focus on credit risk as the main near term concern.

Among recent developments, the conditional OCC approval to form Nubank, N.A. in the United States stands out. It sits alongside Q1’s strong results as a reminder that Nu is trying to balance rapid Latin American credit expansion with a broader, multi country growth plan. While Q1 did not materially change that long term ambition, it did put more emphasis on whether Nu can keep expanding its loan book prudently as it prepares for a US banking footprint.

Yet behind the record Q1 profit, investors should also be aware of rising bad loans and the possibility that credit provisions could...

Nu Holdings' narrative projects $33.0 billion revenue and $6.1 billion earnings by 2028. This requires 78.1% yearly revenue growth and a $3.8 billion earnings increase from $2.3 billion today.

Uncover how Nu Holdings' forecasts yield a $19.99 fair value, a 56% upside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts were already assuming revenue might need to climb toward about US$33.4 billion by 2029 while margins compressed, which is a much tougher hurdle than the baseline view and could look either too harsh or more realistic once the impact of Nu’s rising credit provisions and Q1 earnings miss is fully digested.

Explore 21 other fair value estimates on Nu Holdings - why the stock might be worth over 5x more than the current price!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Nu Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Nu Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nu Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.