Nebius revenue jumps 571% to $980.8 million as it raises 2026 spending
Key Facts
Nebius Group reported unaudited results on November 12 showing third-quarter revenue rose to $980.8 million, up 571% year over year and above analysts’ estimates of $907.5 million. Revenue was $146.1 million in the year-earlier quarter, according to the company’s statement for the period ended September 30, 2026. But the company said 2026 revenue would come in at the low end of its previous outlook after delays in adding capacity from third parties. The indication came alongside a sharp increase in planned capital spending, putting the pace of capacity expansion and its financing at the center of the results. The stock fell about 12% in premarket trading, reversing part of the previous session’s 15% gain.
Adjusted EBITDA turned to a profit of $465.8 million, compared with a loss of $5.2 million a year earlier, while the loss from continuing operations narrowed to $37.5 million from $119.6 million. The comparison shows a strong improvement in the adjusted measure and a smaller accounting loss, but continuing operations still reported a net loss for the quarter. Revenue for the first nine months of 2026 reached $1,962.1 million, up 549% from $302.1 million in the same period a year earlier. The figures reflect an expansion in activity during the year, while the timing of capacity availability remained a factor in the annual revenue outlook. The company said capacity delays would push its target of reaching an annualized revenue run rate above $7 billion back by about two months from the planned date.
Nebius raised its 2026 capital expenditure outlook to about $27 billion, from its previous range of $20 billion to $25 billion, while analysts had expected an average of $22 billion. For next year, the company expects capital spending of $40 billion to $45 billion and said customer prepayments and asset-backed financing tied to existing contracts would cover about 75% to 85% of that spending. This gives an indication of the investment needed to expand infrastructure and the role the company expects contracts and related payments to play in financing that expansion. Reuters reported that contract-related prepayments in the third quarter covered more than 100% of related capital expenditures, including data center and network construction. The company’s plan therefore combines rising spending with reliance on financing flows tied to customer commitments.
Nebius said some capacity it had contracted from third parties and expected to bring online this year had been delayed to the first half of 2027, while the contracts remained in place. The delay affects the timing of adding the capacity needed to provide services and generate revenue, prompting the company to lower its 2026 outlook to the low end of its previous range. Despite the delay, the company expects sales of $12 billion to $13 billion in 2027 and said it is targeting pretax breakeven by the end of that year. Those targets provide a timeline for assessing the effect of delayed capacity on growth and financial results next year. Cloud computing company CoreWeave raised its annual revenue forecast on Tuesday and said it is targeting adjusted profitability in the first half of 2028.
As it expands capacity, the company said the delay to some capacity does not cancel the contracts underpinning it, while the capacity is still expected to come online over the first half of 2027. Quarterly results beat revenue estimates, but the lower 2026 outlook and higher capital spending accompanied a negative share-price reaction before the market opened. The stock rose about 15% in the previous session before falling about 12% in premarket trading on November 12. Nebius held its results call that day at 8:00 a.m. Eastern Time, or 2:00 p.m. Central European Time. The company’s 2027 outlook, including sales, capital spending and pretax breakeven, remains the key set of milestones announced after the results.