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Nu Holdings (NU) Is Up 9.9% After Strong Q2 Profit and Net Interest Income Growth – What's Changed

Simply Wall St · 08/18/2025 05:48
  • Nu Holdings Ltd. has reported its earnings results for the second quarter and first half of 2025, posting net interest income of US$2.10 billion and net income of US$636.84 million for the most recent quarter, both up year-over-year.
  • Notably, the company achieved growth in both basic and diluted earnings per share from continuing operations compared to the previous year, highlighting improved profitability.
  • We'll explore how Nu Holdings' robust net interest income growth this quarter could influence its longer-term prospects and investment narrative.

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Nu Holdings Investment Narrative Recap

To be a shareholder in Nu Holdings, one must be confident in the company’s ability to grow its customer base and broaden financial offerings, especially across Latin America, while balancing profitability and risk. The latest earnings report reinforces the company’s core short-term catalyst, profitable customer expansion, thanks to robust net interest income and increased earnings per share. However, risks tied to international growth and non-IFRS financial reporting remain important; this quarter’s results do not materially change those considerations.

Amid recent company milestones, the appointment of former Brazilian Central Bank president Roberto Campos Neto as Vice Chairman is particularly relevant. His experience may support Nu Holdings’ international expansion strategy, potentially influencing how effectively the company capitalizes on the growth opportunities reflected in this quarter’s earnings increase and ongoing revenue gains.

In contrast, investors should be aware that the use of non-IFRS financial metrics leaves questions around the quality and comparability of reported results...

Read the full narrative on Nu Holdings (it's free!)

Nu Holdings' outlook anticipates $27.4 billion in revenue and $5.1 billion in earnings by 2028. This forecast implies an annual revenue growth rate of 69.3% and a $2.9 billion increase in earnings from the current $2.2 billion level.

Uncover how Nu Holdings' forecasts yield a $14.81 fair value, a 13% upside to its current price.

Exploring Other Perspectives

NU Community Fair Values as at Aug 2025
NU Community Fair Values as at Aug 2025

Fair value opinions from 40 Simply Wall St Community members span a wide US$9 to US$59, with many clustered around US$14 to US$19. With profitability up but expansion risk still present, readers can explore a spectrum of views beyond the consensus story.

Explore 40 other fair value estimates on Nu Holdings - why the stock might be worth 32% less than the current price!

Build Your Own Nu Holdings Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.