Nucleus of Growth: How Nu Holdings is Positioned to Dominate 2026

As we move deeper into 2026, savvy investors are evaluating which companies have the momentum to deliver outsized returns. One name gaining significant attention is Nu Holdings, a fintech player that’s reshaping banking across Latin America. With a stellar 62% surge last year and fundamentals that continue to strengthen, Nu appears well-positioned for another impressive performance in 2026.

The company’s appeal rests on three pillars: attractive valuation despite its recent rally, explosive growth trajectory, and expanding profitability. Let’s explore why this convergence matters.

Valuation Remains a Nucleus for Value Investors

After such a dramatic run-up, one might expect Nu’s stock to command a premium. Yet trading at a forward price-to-earnings ratio of 23.4 as of late January, the fintech leader still offers reasonable entry pricing. This valuation isn’t particularly rich—especially when contextualized against the next two factors.

Consider that many mature financial services companies trade at significantly higher multiples. In an industry often characterized by slow innovation and limited growth, Nu’s combination of reasonable pricing and exceptional execution stands out. This suggests the market hasn’t fully priced in the company’s potential, leaving room for expansion.

Nurturing Its Market: Rapid Expansion Across Three Nations

What truly sets Nu apart is growth that resembles a technology startup rather than a traditional bank. The company generated $4.2 billion in revenue during the third quarter of 2025, reflecting a 42% year-over-year surge. Analysts project the top line will grow 31% in 2026, following an expected 37% gain in 2025.

The numbers get even more compelling when examining Nu’s geographic footprint. In its home market of Brazil, the platform has amassed 110 million customers—more than 60% of the adult population. This represents extraordinary market penetration. Beyond Brazil, Nu operates with 13 million customers in Mexico and 4 million in Colombia, with substantial runway for expansion.

The opportunity is clear: Latin America contains a massive population still underserved by traditional banking infrastructure. Hundreds of millions of people lack access to basic financial services. This demographic reality translates to years of growth potential for a platform as efficient and accessible as Nu’s digital offering.

Numbers Tell the Story: Profitability’s Remarkable Arc

Beyond valuation and growth, 2026 figures to be defining year for Nu because of its accelerating profitability. The company operates a differentiated model that avoids the expense of physical bank branches—a strategic choice that dramatically reduces overhead.

The financial improvement is stark: Nu achieved a net profit margin of 18.8% in Q3 2025, up from just 0.6% three years earlier in Q3 2022. This expansion isn’t driven by cost-cutting alone; it reflects genuine operational leverage as the platform scales. The company maintains delinquency ratios within expectations while generating substantially greater revenue per customer than the cost to serve them.

CEO David Vélez consistently emphasizes what he calls the platform’s “low-cost, highly efficient” architecture. This isn’t marketing speak—the numbers validate it. As Nu continues expanding its customer base, each incremental user becomes increasingly profitable, creating a virtuous cycle.

Why 2026 Could Be a Pivotal Year

Combining reasonable valuation with rapid growth and accelerating profitability creates a rare opportunity set. Markets can shift sentiment quickly, and risks always exist. Yet the fundamentals suggest Nu is entering its most compelling phase yet.

For investors seeking exposure to Latin American financial inclusion and the companies capturing that trend, Nu Holdings warrants serious consideration. The nucleus of opportunity appears to be solidifying.