Why Nubank (NU) Is Poised for Long-Term Growth Amid Regulatory and Strategic Moves in 2026

In the rapidly evolving fintech landscape, few companies have demonstrated the resilience and innovation of Nubank (NU). As 2026 unfolds, the Brazilian digital bank is not only navigating regulatory shifts but also leveraging them to solidify its market dominance. With a record-breaking third quarter of 2025, a strategic push for a Brazilian banking license, and surging institutional investor confidence, Nubank is positioning itself as a compelling long-term investment.

Financial Outperformance: A Foundation for Growth

Nubank's Q3 2025 earnings report underscored its ability to outperform expectations. The company reported a 39% year-over-year increase in net income, reaching $783 million, while total revenue hit $4.2 billion, also up 39% year-over-year. This growth was driven by a 4.3 million customer acquisition in Q3 alone, expanding its global customer base to 127 million-110 million of whom are in Brazil, where it now serves over 60% of the adult population.

The company's financial health is further evidenced by a 31% annualized return on equity (ROE) and a gross profit margin of 43.5%, up from previous periods. The average revenue per active customer (ARPAC) rose 20% year-over-year to $13.4, reflecting deeper customer engagement and diversified revenue streams. These metrics highlight Nubank's ability to scale profitably while maintaining operational efficiency, a critical factor for long-term sustainability.

Strategic Regulatory Moves: Aligning with the Future

Nubank's decision to pursue a full banking license in Brazil by 2026 is a pivotal strategic move. As noted in a Bloomberg report, the company aims to comply with new regulatory requirements under Joint Resolution No. 17, which restricts non-bank entities from using the word "bank" in their branding. This transition, however, is not merely a compliance exercise. It aligns with Nubank's broader ambition to expand its service offerings and strengthen its market position in Brazil, where it already operates under multiple licenses for payments, credit, and investment.

The CEO, Livia Chanes, emphasized that the process will not disrupt existing operations or customer experience. Instead, it positions Nubank to capitalize on regulatory clarity and potentially access new financial products. This move mirrors similar strategies in Mexico, where Nubank secured a banking license earlier in 2025, and the U.S., where it is exploring a banking charter. By aligning with evolving regulations, Nubank is future-proofing its business model while signaling to investors its commitment to long-term stability.

Institutional Investor Confidence: A Vote of Confidence

Institutional investor activity in late 2025 and early 2026 further validates Nubank's growth trajectory. According to Fintel.io, Kontiki Capital Management HK Ltd. increased its stake to 38.1 million shares, valued at $610.47 million, representing 32.5% of its portfolio as of December 2025. Similarly, Lone Pine Capital LLC and Kora Management LP added $406.76 million and $114.44 million, respectively, to their holdings. These purchases reflect a broader trend of institutional confidence, with major shareholders like BlackRock, Inc. and Baillie Gifford & Co. maintaining significant positions.

Analyst sentiment has also turned bullish. Goldman Sachs, JPMorgan, and UBS raised their price targets for NU, with a consensus target of $18.04 and a "Moderate Buy" rating. This optimism is fueled by Nubank's Q3 2025 results, its AI-driven innovation, and its international expansion. For instance, Rathbones Group PLC and Itau Unibanco increased their stakes in the stock, signaling alignment with Nubank's strategic vision.

Conclusion: A Compelling Case for Long-Term Investors

Nubank's combination of financial outperformance, regulatory foresight, and institutional backing creates a robust foundation for long-term growth. Its Q3 2025 results demonstrate scalable profitability, while its pursuit of a Brazilian banking license ensures alignment with regulatory trends. Meanwhile, surging institutional investment and analyst upgrades underscore confidence in its ability to navigate challenges and capitalize on opportunities. For investors seeking exposure to a fintech leader with a clear strategic vision and strong fundamentals, Nubank presents an attractive opportunity in 2026.