Nu Holdings Misses Q1 Net Income Estimates, Reports 76% Surge in Credit Loss Provisions
NU is trading near its 52-week low of $11.71 (0.4% above the low).
Summary
Nu Holdings reported Q1 2026 net income of $871.4 million, missing analyst estimates, while also disclosing a 76.5% increase in expected credit loss provisions.
Key Events · Earnings and Guidance · NU
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Q1 Net Income Misses Estimates
Reported Q1 2026 net income of $871.4 million, falling short of analyst estimates of $980 million, despite a 56.4% year-over-year increase from $557.2 million in Q1 2025.
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Revenue Growth Remains Strong
Total revenue for Q1 2026 reached $4.97 billion, a 53.0% increase from $3.25 billion in Q1 2025.
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Expected Credit Loss Provisions Surge
Expected credit loss provisions increased by 76.5% year-over-year to $1.72 billion in Q1 2026, up from $973.5 million in Q1 2025, indicating potential credit quality concerns.
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Basic Earnings Per Share Increase
Basic earnings per share rose to $0.1796 in Q1 2026, compared to $0.1157 in Q1 2025.
Analysis · NU · Finance
Nu Holdings reported Q1 2026 net income of $871.4 million, falling short of analyst estimates of $980 million. This earnings miss, despite robust year-over-year revenue growth, is a significant negative signal. Compounding this concern is a substantial 76.5% increase in expected credit loss provisions to $1.72 billion, which indicates a potential deterioration in credit quality or a more conservative outlook on loan performance. For a financial institution, a sharp rise in credit loss provisions can directly impact profitability and asset quality, making this a critical development for investors, especially as the stock trades near its 52-week low.
At the time of this filing, NU was trading at $11.76 on NYSE in the Finance sector, with a market capitalization of approximately $62.8B. The 52-week trading range was $11.71 to $18.98. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.