Nu Holdings Ltd. (NU.US) shares surged more than 11% on Friday, marking its largest single-day gain in a year, trading at $15.49. The sharp rally was driven by a stellar set of second-quarter fiscal 2026 results released after the previous trading session.

The Latin American digital banking giant reported its first-ever quarterly net profit exceeding $1 billion, up 49% year-over-year, comfortably surpassing consensus estimates. Revenue growth was equally robust, with total revenue beating Wall Street forecasts and earnings per share also exceeding expectations. This strong financial performance marks a clear reversal from the credit cost headwinds that had weighed on previous quarters, providing direct fundamental support for a significant valuation reassessment.

A key catalyst behind the bullish momentum was a notable expansion in profit margins and stabilization of credit quality. The risk-adjusted net interest margin widened to a record high, driven by a quarter-over-quarter decline in credit costs and improvements in early delinquency indicators, alleviating market concerns about non-performing loans. Operational metrics further highlighted the platform's compounding efficiency advantages, with the global customer base growing to nearly 139 million, while average monthly revenue per active customer and user engagement continued to rise.

Management's cost-efficiency efforts, combined with the announcement of a new share buyback program, further demonstrated disciplined capital allocation and long-term confidence.