New York, Feb 27, 2026, 06:54 EST — Premarket
- Nu Holdings shares looked set to open modestly higher, following a sharp drop of nearly 10% in the previous session.
- Parent company Nubank reported fourth-quarter profit up 50%. Still, investors were focused on rising costs and credit quality.
- First-quarter results, set for release in May, will provide the next update on expenses and delinquency trends.
Nu Holdings Ltd (NU) was up roughly 0.7% at $15.16 before the bell Friday, bouncing back a bit after shares slid 9.55% to $15.06 in the previous session. 1
The rebound attempt is important here: Nubank’s parent delivered another rapid-growth quarter, but shares still took a steep hit. Right now, traders are weighing if this is just the business settling down after a hot streak, or if rising costs and credit issues are beginning to weigh.
Nu posted a fourth-quarter net income of $894.8 million, up 50% year-over-year, according to a securities filing. Revenue came in at $4.86 billion, marking a 45% increase. Customer count across Brazil, Mexico and Colombia climbed 15% to 131 million. The company’s loan book grew 40% to $32.7 billion. Over-90-day delinquency edged lower, now at 6.6%.
Nu reported its monthly active customer service cost held at $0.8, keeping it under the $1 mark. The bank’s efficiency ratio, which tracks operating costs against revenue, improved to 19.9%. Risk-adjusted net interest margin landed at 10.5%. Without a one-off payment to Mexico’s Prosofipo deposit protection fund, that margin would have been roughly unchanged, according to the company. Nu noted that its efficiency ratio could see some near-term upward movement as it ramps up spending for growth and continues work on a potential U.S. push. 2
Even so, investors moved to sell after Wednesday’s results. JPMorgan’s analysts pointed out that the profit surprise mainly reflected a lower tax rate, calling it “the main pushback from bearish investors.” Citi, for its part, labeled the quarter strong at the top line but argued that higher cost of risk and operating expenses “mud the picture.” CFO Guilherme Lago told Reuters the results demonstrated “positive leverage to revenue,” and noted that delinquencies tend to tick up in the first quarter, citing “natural seasonality.” 3
Other Latin America-focused fintech stocks didn’t offer much relief. MercadoLibre, StoneCo, and PagSeguro each dropped about 6% in the latest session.
Nu faces a risk: Thursday’s decline could linger, especially if credit costs outpace management’s projections or the one-time tax benefit that lifted the quarter doesn’t recur. If operating expenses also start creeping up, investors will likely zero in on margin pressure instead of eyeing growth.
Nu plans to release its first-quarter earnings and host a conference call on May 14, according to its investor relations calendar. For investors, that’s the next big test: will the company’s expense controls and credit quality stand up after the recent post-earnings volatility? 4
