Nu Holdings (NYSE:NU) shares jumped 9.1% in pre-market trading after the Latin American digital banking group delivered a record second-quarter performance, including quarterly net income above $1 billion for the first time in its 13-year history.
The results, released after the market close on August 13, 2026, showed net income of $1.06 billion, representing currency-neutral growth of 49% from a year earlier. The figure comfortably exceeded analyst expectations of approximately $967 million.
Total revenue reached $5.88 billion, also coming in ahead of forecasts, while risk-adjusted net interest margin climbed to a record 12.4%. Earnings per share of $0.22 surpassed the consensus estimate of $0.20, marking a positive earnings surprise after the company fell short of expectations in the previous quarter.
Profitability and credit metrics strengthen
Beyond the headline earnings beat, several underlying indicators contributed to the positive investor reaction.
Credit costs declined sequentially, easing concerns about asset quality as Nu continues expanding its lending operations across Latin America. At the same time, the company’s efficiency ratio fell to a record low, highlighting improved operating leverage as its customer base and revenue continue to grow.
The combination of stronger margins, lower credit costs and greater efficiency helped address some of the profitability concerns that had previously weighed on investor sentiment towards the stock.
Nu announces $1 billion share buyback
Shareholder returns provided another catalyst after Nu’s board authorised a $1 billion share repurchase programme.
The buyback signals confidence from management in the group’s balance sheet, cash generation and longer-term prospects, while potentially reducing the number of shares outstanding over time.
Coming alongside record quarterly earnings, the repurchase announcement strengthened the market’s view that Nu is entering a more mature phase in which rapid expansion is increasingly being accompanied by substantial profitability.
Brazil and Mexico developments add strategic momentum
Nu also provided investors with encouraging developments across two of its most important Latin American markets.
Nubank’s acquisition of Banco Porto Real de Investimentos is intended to secure an additional banking licence in Brazil, potentially expanding the group’s strategic and regulatory flexibility in its largest market.
Meanwhile, Nu Mexico has reached break-even and become the country’s third-largest financial institution, adding to confidence that the company’s expansion beyond Brazil can develop into another meaningful source of earnings.
The progress in Mexico is particularly significant as Nu seeks to replicate elements of its Brazilian digital banking model across other major Latin American markets.
U.S. market backdrop remains supportive
Broader financial markets also provided a relatively constructive setting for Nu’s earnings reaction.
U.S. equities closed at record levels on Thursday, with the S&P 500 moving above 7,800 for the first time. Softer inflation figures helped reinforce expectations that the Federal Reserve could leave interest rates unchanged at its next policy meeting.
U.S. index futures were broadly flat heading into Friday’s session, with investors awaiting July retail sales figures for further indications about the strength of the economy.
The relatively stable macroeconomic environment has helped maintain investor appetite for growth-oriented financial companies.
Nu shares climb towards $15.20
The combination of record earnings, stronger margins, improving credit trends and the new share repurchase programme triggered a sharp revaluation of Nu Holdings shares before the opening bell.
The stock moved towards $15.20, taking it comfortably above its recent trading range in the low-to-mid $13 area.
With quarterly net income crossing the $1 billion threshold for the first time, investors are increasingly focused on whether Nu can maintain its combination of rapid customer growth, improving operating efficiency and expanding profitability as its Latin American banking platform continues to scale.