Why 2026 Could Mark Nu Holdings' Breakthrough Year in Latin America

The early weeks of 2026 are revealing investment patterns that favor momentum players. Yet the most compelling opportunity may lie with companies that combine solid fundamentals with significant runway—precisely where Nu Holdings stands. This prediction: 2026 will be the year when investors finally recognize the full scope of Latin America’s banking revolution, with Nu at its center.

The Brazilian fintech giant delivered a remarkable 62% return in 2025, yet the real story extends far beyond past performance. What makes 2026 potentially transformative is the convergence of three powerful trends: attractive valuation, explosive growth potential, and margin expansion—all anchored by an opportunity that spans hundreds of millions of underserved customers across the region.

Valuation Hasn’t Caught Up to the Opportunity

After such dramatic gains, savvy investors naturally ask: has the valuation become stretched? The answer suggests otherwise. As of late January 2026, Nu shares trade at a forward price-to-earnings ratio of 23.4—a reasonable multiple when contextualized against what comes next.

In traditional financial services, this valuation would represent a premium. But Nu operates in a different league. The company’s valuation reflects neither the mature bank discount nor the high-flying fintech premium. It sits at the Goldilocks point where growth investors get exposure to explosive expansion without paying excessive multiples.

Growth That Defies Financial Services Norms

The fintech sector rarely produces the kind of growth figures Nu delivers. The financial services industry typically moves with glacial speed—think traditional banks expanding at single-digit percentages annually. Nu is different.

In the third quarter of 2025, the company generated $4.2 billion in revenue, representing 42% year-over-year growth. Analysts project this deceleration will be modest, with a 31% increase forecasted for 2026. For context, most mature financial services businesses would celebrate 5-7% annual growth.

The engine driving this expansion tells a compelling story about Latin America’s structural opportunity. Nu commands 110 million customers in Brazil alone—more than 60% of the adult population. This isn’t market penetration; it’s near-total market capture in the company’s home market.

But the real prediction for 2026 centers on expansion beyond Brazil. The platform serves 13 million customers in Mexico and 4 million in Colombia. These numbers represent early innings in markets where the vast majority of the population still lacks access to basic banking products and digital financial services. Colombia, in particular, represents a significant opportunity—with a population of 52 million and a large unbanked segment, the potential for user acquisition mirrors what Nu demonstrated in Brazil.

Profitability That Rewards Patient Investors

Perhaps most compelling is how Nu’s economics have transformed. The company operates a lean, digital-first model that eliminates the branch infrastructure costs that burden traditional banks. This operational advantage has cascaded through to the bottom line.

Nu reported a net profit margin of 18.8% in Q3 2025—a stunning expansion from just 0.6% in Q3 2022. This isn’t incremental improvement; it’s a fundamental restructuring of the business model. The company generates substantially more revenue per customer than the cost to serve them, while delinquency ratios remain within expectations.

CEO David Vélez’s vision of a “low-cost and highly efficient platform” has moved from aspiration to reality. The profit margin trajectory suggests that 2026 will see further operating leverage as the customer base scales without proportional cost increases.

Latin America’s Banking Revolution Is Just Beginning

The confluence of these factors—reasonable valuation, 31% projected growth, and expanding margins—creates a thesis for 2026: this is the year when the investment community fully internalizes the opportunity embedded in Latin America’s financial inclusion wave.

Nu’s Colombia prediction represents more than a single market expansion. It symbolizes the early stages of serving over 600 million people across Latin America, most of whom remain outside the traditional banking system. With a proven model, demonstrated unit economics, and clear runway in multiple markets, Nu holds a unique position.

The year ahead will likely see investors drawn to exactly this type of opportunity: reasonable valuation, genuine growth, and improving profitability. Whether 2026 proves to be the breakthrough year depends partly on execution, but the ingredients for a significant move appear to be in place.