Shares of Nu Holdings (NYSE: NU) declined 3.3% to $12.84 in New York trading on Wednesday, as investors positioned ahead of the company's first-quarter 2026 earnings release, scheduled for after the market close on May 14. The digital banking platform, known for its Nubank brand, is expected to report earnings per share of $0.20 on revenue of $5.06 billion, according to consensus estimates from MarketBeat.
The stock's slide reflects a cautious tone among market participants, who are closely monitoring credit quality and funding costs after the company ended 2025 with a record profit and 131 million customers. Nu's fourth-quarter results, reported in February, showed net profit jumping 50% to $894.8 million on revenue of $4.86 billion, but analysts at JPMorgan attributed part of the beat to a lower-than-expected tax rate, while Citi flagged concerns over cost of risk and operating expenses.
In the fourth quarter, loans overdue by more than 90 days stood at 6.6%. Chief Financial Officer Guilherme Lago noted that delinquencies typically rise in the first quarter due to seasonal factors, but investors will be watching Thursday's report for signs of whether credit losses are eating into the company's growth gains.
Key Metrics Under the Microscope
Analysts and investors will focus on customer growth, average revenue per active customer (ARPAC), and loan expansion across Nu's key markets in Brazil, Mexico, and Colombia. As of December 2025, Nu reported 131 million customers, a 15% year-over-year increase, with monthly ARPAC reaching $15 per active user. The company's ability to maintain this growth trajectory while keeping credit losses in check is seen as critical.
Founder and CEO David Vélez previously emphasized that Nu is focused on "winning in Latin America" and building a broader digital banking platform. The earnings call, scheduled for 6 p.m. Eastern Time (7 p.m. Brasília time) on Thursday, will provide further insight into the company's strategic direction.
Competitive Landscape
Nu operates in a competitive Brazilian fintech market. PagSeguro, another major player, reported first-quarter net revenue of R$3.3 billion, up 6.4% year over year, with its banking segment revenue surging 41% despite elevated interest rates. Traditional banks are also pushing back: Itaú Unibanco posted a first-quarter recurring managerial profit of R$12.3 billion, a 10.4% increase, with return on equity at 24.8%.
Nu's growth multiples remain high, meaning the stock is priced for continued strong performance. Thursday's results will need to demonstrate that the company's expanding scale is translating into consistent earnings growth, rather than just top-line expansion.
Volume in Nu shares approached 38.8 million shares on Wednesday, suggesting heightened investor interest ahead of the report. The stock is down from recent highs, and a clean earnings beat could provide the catalyst bulls are looking for, while any deterioration in credit metrics could weigh on the shares further.
