Brazilian President Luiz Inácio Lula da Silva won reelection Sunday in a dramatic comeback, defeating Senator Flávio Bolsonaro, the son of former President Jair Bolsonaro, in the presidential runoff.

The country's electoral court called the race for Lula shortly after polls closed, with the incumbent securing approximately 51.5 to 51.8 percent of the vote compared to 48.2 to 48.5 percent for his right-wing challenger. The margin stood at roughly 2.6 to 4.3 million votes out of more than 123 million valid ballots cast.

This marks the first time since Brazil's return to democracy in the 1980s that a candidate who finished second in the first round has won the runoff. Lula had trailed Flávio Bolsonaro in the October 4 first round, receiving 45 percent to the senator's 47 percent.

Lula, who previously served two terms from 2003 to 2010 and returned to office in 2023, now heads into a fourth non-consecutive term beginning in January 2027. The 80-year-old leader overcame significant headwinds, including anti-incumbent sentiment seen in other Latin American elections.

Flávio Bolsonaro, backed by his father's far-right movement, had hoped to capitalize on strong first-round performance and family name recognition. Jair Bolsonaro remains imprisoned on a 27-year sentence related to a failed coup attempt following his 2022 loss to Lula.

The outcome leaves Brazil deeply divided, with nearly half the electorate supporting the right-wing candidate. Bolsonaro's Liberal Party made substantial gains in congressional races, positioning it to hold the largest bloc in a legislature described as the most right-leaning in the democratic era.

Markets reacted negatively to the result, with Brazilian stock tracking ETFs dropping sharply. Lula faces immediate challenges governing alongside a hostile Congress while addressing public debt and economic pressures.

The victory halts momentum for right-wing shifts across the region that have aligned with U.S. policy priorities under President Donald Trump.