Nu Holdings (NU) Revenue Surges 45% Year-Over-Year, Beats Expectations

Core Viewpoint - Nu Holdings Ltd. is recognized as a strong growth stock for long-term investment, despite recent adjustments in price targets and earnings forecasts by BofA Securities [1][4]. Financial Performance - In Q4 2025, Nu Holdings reported earnings before taxes that fell short of BofA's projections by approximately 15% due to increased risk and operating costs [3]. - The company announced revenue of $4.9 billion, exceeding average expectations of $3.79 billion by 29% and reflecting a 45% year-over-year increase [3]. Earnings Forecast - BofA maintains its net income forecasts, anticipating earnings growth of 45% in 2026 and 28% in 2027, with a return on equity projected at around 30% [4]. - The firm has adjusted its price target for Nu Holdings to $17 from $18, lowering the target price-to-earnings multiple to 21x from 22x due to a de-rating trend among global high-growth banking companies [1][4]. Business Overview - Nu Holdings operates a digital banking platform across Brazil, Mexico, Colombia, the Cayman Islands, and the US, offering spending and mobile payment solutions, as well as Nu Shopping [4].