Nu Holdings stock has been a strong performer in recent years. Since its IPO in late 2021, the stock has climbed from $9 to near $161 as Nubank - the largest digital bank in Latin America - has grown its customer base and increased its revenues. Looking ahead, Wall Street analysts see more upside in the FinTech stock. Here’s why sentiment remains bullish.
Q3 Earnings Were Strong
Nu Holdings’ recent earnings2 - for the third quarter of 2025 - showed that the digital banking group continues to expand at a rapid rate. For the quarter, revenues increased 39% year on year to a record $4.2 billion (versus $3.8 billion expected3) while net income also rose 39% to $783 million (versus $757 million expected).
During the quarter, Nu welcomed 4.3 million new customers, bringing its total customer count to 127.0 million (+16% YoY). The activity rate (monthly active customers divided by total number of customers) was 83% while monthly average revenue per active customer was $13.4 versus $11.2 a year earlier.
In terms of credit quality, Nu's 15-90 non-performing loan (NPL) ratio (which is calculated by dividing credit balances 15 to 90 days past due by total the credit portfolio) for the Brazil Consumer Credit Portfolio was 4.2%, a 0.2 percentage point fall both yearly and quarterly. The 90+ NPL ratio increased marginally to 6.8% - in line with expected seasonality - but was down from 7.2% a year earlier.
In the Q3 earnings release, CEO David Vélez said that the company is redefining how customers experience banking. He also said that the group is integrating artificial intelligence (AI) into its platform to improve the offering for customers.
US Bank Charter Application
While Nu is currently having a lot of success in Brazil, Mexico, and Colombia, it is hoping to operate in the US in the future. And in late September, it announced4 that it had applied for a national bank charter with the US Office of the Comptroller of the Currency (OCC). This move is aligned with the company’s intention to explore future international opportunities by evolving its regional platform into a global model. If a charter is granted, the bank plans to eventually offer deposit accounts, credit cards, lending, and digital asset custody services in the US, so this could be a whole new source of growth for the company.
Wall Street’s Price Targets for Nu
Given Nubank's strong growth, Nu stock commands a relatively high valuation at present. Currently, it trades on a forward-looking price-to-earnings (P/E) ratio of about 28 - a multiple well above those of most traditional banks5. Nevertheless, analysts6 see further upside - since the company’s Q3 earnings, several firms have published price targets of $18 or higher. At present, KeyBanc and Susquehanna have the highest price targets at $19, implying upside of around 20% from here.
Footnotes:
1Google Finance, as of November 18, 2025
2NU Earnings Release Q3 2025, as of November 13, 2025
3Reuters, Digital lender Nubank posts Q3 income beat, record profitability, as of November 14, 2025
4NU Newsroom, Nubank Applies for U.S. National Bank Charter, as of September 30, 2025
5Nasdaq, Nu Holdings Ltd. Class A Ordinary Shares (NU) Earnings, November 18, 2025
6Investing.com, Nu Holdings Ltd (NU), as of November 18, 2025
