Is Nu Holdings a good stock to buy in 2026? If you’d asked that back in 2021 when it first went public, you might’ve been met with some nervous glances. Back then, it was just another "growth at any cost" neobank. But things have changed. Today, Nu Holdings (NU)—the parent company of Nubank—is basically the heavyweight champion of Latin American fintech. It isn't just surviving; it is eating the lunch of traditional, century-old Brazilian banks.
Honestly, the numbers coming out of their recent earnings calls are a bit ridiculous. As of early 2026, we’re looking at a company that has onboarded over 127 million customers. To put that in perspective, that is more than 60% of the entire adult population in Brazil.
The Buffett Exit: What Most People Get Wrong
You've probably heard the headlines. Warren Buffett’s Berkshire Hathaway, the ultimate seal of approval for any bank stock, completely exited its position in Nu Holdings during the first half of 2025. When the Oracle of Omaha sells, people panic. It’s natural.
But here’s the thing—Buffett’s exit likely had more to do with his shifting view on the macro-environment in Latin America rather than a flaw in Nu’s business model. While he was selling, Nu was busy reporting a massive 47% jump in net income. By the end of Q3 2025, they posted a record net income of $783 million.
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Most people see a big institutional exit and think the ship is sinking. In reality, Nu has been hitting record return on equity (ROE) of 31%. That is light-years ahead of most traditional US banks. If you're looking for a reason to avoid the stock, "Buffett sold" is a common one, but the actual financial health of the company has never looked better.
Why the 2026 Expansion Changes Everything
The growth story in Brazil is incredible, but even the best markets reach saturation. If Nu was only a Brazil story, the "is Nu Holdings a good stock to buy" question would be much harder to answer.
They aren't stopping at the border.
Mexico and Colombia are the next frontiers. In Mexico, they’ve already crossed the 13 million customer mark. They recently announced a $2.5 billion five-year investment plan specifically for Mexico. That’s not "testing the waters" money. That’s "we plan to own this market" money.
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They are also playing the regulatory game perfectly. In 2025 and moving into 2026, Nu has been applying for and receiving banking charters in these new territories. Why does that matter? It lets them offer more products, lower their cost of funding, and basically act like a traditional bank without the expensive physical branches.
Is Nu Holdings a Good Stock to Buy at These Valuations?
Let's be real—Nu is not "cheap" by traditional standards. It currently trades at a price-to-earnings (P/E) ratio in the 30s. If you compare that to a legacy bank like JPMorgan or Bank of America, it looks expensive.
However, growth investors use a different yardstick. The PEG ratio (price/earnings to growth) for Nu is sitting around 0.73. Anything under 1.0 is usually considered undervalued for a growth stock. Wall Street analysts are currently projecting earnings to grow by more than 40% in 2026.
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- Goldman Sachs recently reiterated a Buy rating with a $21 price target.
- Zacks Research upgraded it to a "Strong Buy" in early January 2026.
- KeyBanc and Morgan Stanley have also pushed their targets higher, citing the company's ability to cross-sell insurance and investments to its existing user base.
The risk? It’s always there. Latin American economies can be volatile. Currency fluctuations (especially the Brazilian Real) can eat into the earnings when they are converted back to US dollars. Plus, as Nu moves into credit products like personal loans and credit cards for lower-income tiers, there's always the risk of rising defaults if the economy takes a dip.
The AI Play and Efficiency
One thing that doesn't get enough credit is how lean this company is. They have an efficiency ratio of 27.7%. In banking, a lower number is better. Most traditional banks struggle to get below 50%.
Nu is heavily leaning into an "AI-first" strategy. They aren't just using it for chatbots. They use it for credit underwriting—deciding who gets a loan and who doesn't. Because they have data on 127 million people’s spending habits, their algorithms can often predict risk better than a human loan officer. This tech-first approach is why their cost-to-serve remains under $1 per customer.
Actionable Steps for Investors
If you are considering adding this to your portfolio, don't just dive in headfirst. Here is how to approach it:
- Watch the Mexico Growth: This is the most important metric for 2026. If customer acquisition in Mexico slows down, the "multi-country" thesis takes a hit.
- Monitor the NPL Ratios: Keep an eye on Non-Performing Loans. Currently, they are holding steady around 4% to 6%, which is healthy for the region, but any spike above 8% should be a red flag.
- Dollar-Cost Average: Because the stock has a beta of 1.08, it’s a bit more volatile than the average S&P 500 stock. Instead of buying all at once, consider scaling in over several months to smooth out the price swings.
- Look Past the Buffett News: Institutional moves are often based on portfolio rebalancing, not just company quality. Focus on the quarterly ROE and net margin instead.
Nu Holdings is no longer a speculative startup. It is a highly profitable, massive-scale financial engine that is still growing at a double-digit clip. For those wondering if it's a good buy, the answer depends on your stomach for international volatility—but the fundamentals suggest the growth story is far from over.