Nu Holdings Ltd. (NYSE: NU), the parent company of digital bank Nubank, delivered a standout fiscal second quarter on August 14, 2026, beating analyst expectations on both revenue and profit. Revenue climbed 39% year-over-year to $5.9 billion, while net income surged 49% to $1.1 billion, marking the first quarter in the company's history with net income above $1 billion since its 2013 founding. Earnings per share came in at $0.22, ahead of the $0.20 consensus estimate.
The results were supported by record unit economics. Nu's risk-adjusted net interest margin expanded to 12.4%, up from 9.9% a year earlier and above bullish expectations centered around 11%. Management said the margin profile looks sustainable in the near term, helped by an all-time-low efficiency ratio. Monthly average revenue per active customer rose more than 35% year-over-year to $17.1.
Credit quality, a prior concern, improved as cost of credit declined sequentially to $1.7 billion. Nu added 4 million customers in Q2, bringing total clients to 139 million globally. Its Mexico unit reached break-even after obtaining a full banking license earlier in August, unlocking deposit-taking and lending in its fastest-growing market. The board also approved a new $1 billion share repurchase program.
Technically, the post-earnings rally pushed NU shares above the 20-day moving average, and options positioning remains bullish: the put-to-call ratio for mid-September contracts is 0.27, with an upper price target of $16.65, implying potential additional upside of about 7.58% over four to five weeks. Wall Street consensus rates the stock Overweight, with a mean price target above $17, suggesting roughly 11% further upside.
The beat reinforces Nu's growth trajectory amid competitive fintech conditions. Investors and analysts are monitoring customer acquisition costs, loan portfolio quality, and expansion in Mexico and Colombia as the company scales efficiently.
