Nu Holdings Ltd. (NYSE:NU) is one of the best low priced stocks to buy for the next 3 years.
On May 14, Nu Holdings reported record results for Q1 2026, with revenue surpassing $5 billion for the first time and net income reaching $871 million, representing a 41% year-over-year increase
The company added 4 million customers in the quarter to cross 135 million globally, driven by Brazil expanding past 115 million and Mexico achieving break-even profitability with 15 million customers. The total credit portfolio expanded 40% year-over-year to $37.2 billion, which outpaced liabilities and pushed the net interest margin to 21.1%. Due to Q1 seasonality and intentional expansions into higher-risk segments, credit loss allowances rose 33% quarter-over-quarter to $1.79 billion, lowering the risk-adjusted NIM to 9.5%.
Consequently, the early-stage 15-90 NPL ratio rose to 5.0%, while the 90+ NPL ratio eased slightly by 10 basis points to 6.5%. A key growth driver was Nu Holdings Ltd.’s (NYSE:NU) AI transformation, featuring its proprietary “NuFormer” foundation models currently optimizing real-time credit decisioning in Brazil and Mexico. The company’s AI Private Banker functionalities now serve over 15 million monthly active users, leveraging a cloud-native tech stack and a massive first-party dataset.