Nu (NU) Stock Jumps As Q3 Earnings Strengthen Profit Case Amid Credit Risk

Nu Holdings came into this Q3 2026 report with a mixed tape. The stock was down double digits over the past month, yet it ripped 11.8% higher today to close at US$13.22. That spike reflects one thing above all else: the bank posted about US$1.1b in net income and a return on equity near 32%, numbers that speak directly to the long term profitability thesis investors have been debating.

The reaction in Nu Holdings shares shows how quickly sentiment can swing when a high growth digital bank reports earnings that highlight its profit engine more than its credit worries.

Love Nu Holdings' 32% return on equity but still uneasy about credit risk in a fast growing digital lender? You can filter for banks and fintechs that pair strong profitability with sturdier balance sheets using the list of solid balance sheet and fundamentals stocks (24 results)

Q3 2026 Earnings Summary

• Total Revenue (Q3 2026 vs Q3 2025): US$2,580.3m vs. US$1,919.5m (up 34.5%)
• Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025): US$1,090.8m vs. US$782.5m (up 39.4%)
• Basic EPS (Q3 2026 vs Q3 2025): US$0.226 vs. US$0.162 (up 39.5%)
• Non Performing Loans (Q3 2026 vs Q3 2025): US$3,839.5m vs. US$2,543.7m (up 51.0%)

Nu just took its Brazil playbook global with Nu U.S. and Nu Global. Ask Charlie what Nu Holdings’ new U.S. push really changes.

Nu Holdings’ Bull Story Faces a Real Credit Test

The bullish analyst narrative on Simply Wall St centers on Nu Holdings scaling high margin lending without letting risk get away from it.

"The main thing that has to go right is Nu Holdings continuing to balance rapid unsecured credit expansion with disciplined provisioning and asset quality, while it scales into large profit pools in Brazil and Mexico and funds measured international expansion."

Q3 results partly back that claim. Unsecured lending reached US$11.0b with record personal loan originations, yet allowance coverage of 90+ day non performing loans stayed above 200% and provisioning again exceeded new delinquency formation. Delinquency ratios ticked higher but remained below levels from three years ago, so the profit engine is still paired with a reinforced buffer rather than a visible crack.

Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there.

Nu Holdings Credit Fears Meet Mixed Evidence

Bearish analyst narrative on Simply Wall St argues Nu Holdings could be overrelying on algorithms just as higher risk lending ramps up.

"While NuFormer and other AI tools are already used across underwriting and customer support, heavier reliance on these systems as credit growth speeds up in unsecured and SME lending could amplify model errors or blind spots in new cohorts."

Q3 shows some of that risk flickering, not flashing. Unsecured balances reached US$11.0b and 90+ day delinquency on the interest earning portfolio edged to 12.1%, while coverage of 90+ non performing loans eased from 244% to about 234%. Provisioning still ran slightly ahead of new delinquency, so the stress is contained but not disproved.

Hunt Quiet Fundamental Disconnects

Nu Holdings just showed how sharply opinion can pivot when a profit story outweighs credit worries. The real opportunity is finding stocks that could be undervalued before the market corrects them.

• Company 1 - 41% below our estimate - focuses on scaling a multi brand apparel platform while recycling divestiture proceeds into product investment and capital returns.
• Company 2 - 35% below our estimate - leans into direct retail, AI tools and trade in partnerships to lift margins on pre owned electronics.
• Company 3 - 36% below our estimate - ramps denser flash technology to supply data center buyers chasing higher performance storage for AI and cloud workloads.

That is three of the list. See the full list of 32 companies trading below our fair value estimates →

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