Nu .(US:NU) Yahoo Finance·2026-02-04 18:10Core Insights - Nu Holdings Ltd. is recognized as a promising large-cap stock under $50, with a price target increase from $19 to $22 by Susquehanna, reflecting a positive outlook for 2026 as the company prepares for global expansion [1][4] - The company reported 127 million customers in Q3 2025, generating over $4 billion in revenue, with a net income of $783 million, marking a 39% increase on a currency-neutral basis [2][4] - An AI-first strategy has been introduced to enhance credit modeling and operational efficiency, contributing to improved asset quality and a record Return on Equity (ROE) of 31% [2][4] Financial Performance - In Q3 2025, Nu Holdings achieved over $4 billion in revenue and a net income of $783 million, driven by strong market penetration in Mexico and ongoing expansion in Brazil [2][4] - The company experienced slight compression in net interest margins due to a shift towards lower-risk assets and increased funding costs in Brazil [4] Strategic Initiatives - Management is focused on long-term growth, initiating credit limit increases expected to fully materialize by late 2026 [4] - The company is addressing regulatory concerns in Mexico regarding potential interchange fee caps, indicating proactive management of external challenges [4] Market Position - Nu Holdings operates a digital banking platform across Brazil, Mexico, Colombia, the Cayman Islands, and the US, offering various spending and transactional solutions [5]