Now Holdings (NYSE:NOW), parent company nubankIt reported another solid quarter on May 14, 2026, showcasing its continued dominance as a leading digital finance platform in Latin America. The fintech company added nearly 4 million new customers, pushing its global base past 135 million. nubank revenues exceeded $5 billion for the first time, net profit rose to $871 million and return on equity reached 29%.
Founder and CEO David Velez He emphasized that the results are evidence of sustainable momentum and emphasized that the company is not just incorporating artificial intelligence into traditional technologies. banking but fundamentally redesigning the industry around it.
Customer engagement remained high, with average monthly revenue per active customer rising sequentially to nearly $16. Even as the company approached 100 million active users in Brazil, activity rates remained steady at 83%.
The efficiency rate increased significantly to 17.6%; this reflects stronger monetization and scale; but full-year guidance points to international growth and stability as investments in AI infrastructure continue.
Presence its quality showed typical seasonality in the first quarter; early-stage delinquencies (15-90 days) increased to 5.0%, while long-term delinquent loans decreased to 6.5%.
From a financial perspective, net interest income reached a record $3.25 billion, up 12% from the previous quarter, as the loan portfolio expanded faster than financing sources.
credit The ledger increased by 40% compared to the same period last year, reaching $37.2 billion; Of this amount, $24.3 billion consisted of credit cards, approximately $10 billion from unsecured loans and $3 billion from secured products.
Deposits increased by 22% to 42.4 billion dollars. debtDeposit to deposit ratio is 58.3%. Gross profit increased 27% to $1.88 billion, while net income increased 41% from the previous year, maintaining a multi-year compound growth rate of more than 80%.
One element that stood out was Nubank. artificial intelligence transformation. Proprietary models known as NuFormer now power real-time credit decisions for cards in Brazil and Mexico, as well as unsecured loans in Brazil. Artificial Intelligence supported “Private Banker” toolsOffering insights, payment advice and debt solutions, the company currently helps more than 15 million monthly users.
These innovations enabled resilient, disciplined credit growth rather than uncontrolled pace. In Mexico, the business reached breakeven and became the third largest financial institution with 15 million customers, mirroring Brazil’s successful tactics.
Brazil While it consolidated its position as the country’s largest private financial institution by exceeding 115 million customers, Colombia approached 5 million.
Despite strong fundamentals, Nu Holdings shares fell roughly 5-10% in after-hours trading following the announcement, as GAAP earnings per share of $0.18 fell slightly short of consensus estimates of around $0.19-$0.20.
Some investors It also pointed to a seasonal increase in early defaults and higher loan provisions. YTD, to stock It fell about 20-24% and traded around $12 due to the market’s broader warnings about growth names.
But analysts remain generally constructive. Most maintain a “Buy” rating with 12-month price targets averaging $15-$18, implying 25-50% upside.
They point out that Nubank is undervalued relative to its growth trajectory. Mexican‘s twist and AI-driven efficiencies are poised to drive further margin expansion and market share gains.
Credit Portfolio flexibility, supported by advanced risk models, is seen as a key differentiator.
In Latin America’s fintech ecosystem, nubank is the leader in terms of scale, but Mercado Pago’s data-rich ecosystem faces competition from emerging players such as PagSeguro, StoneCo and Mexico’s Klar.
The regional market is projected to expand at a CAGR of 12% by 2031, fueled by the underbanked population and digital adoption, despite regulatory changes, currency volatility and similar challenges. cyber security risks continue.
Nubank’s low-cost model, artificial intelligence While traditional banks struggle to keep up with its agility, its leverage and diversified revenue streams put it in an advantageous position for sustainable leadership. Last fiscal quarter strengthens nubankjourney towards globalization digital banking Investors are mostly investing in long-term compound interest rates despite the current challenges.
