Nebius Targets Capital Spending of $40 Billion to $45 Billion in 2027
Key Facts
Nebius set preliminary capital spending of $40 billion to $45 billion in 2027, above the average analyst estimate of about $28.77 billion, according to data cited by Investing.com. The guidance comes as the company seeks to expand capacity to meet demand for AI-related computing services. The scale of planned spending puts the financing of that expansion and the timing of new capacity coming online at the center of investor focus. The company also forecast revenue of $12 billion to $13 billion in 2027. It is also targeting pretax break-even by the end of that year, Reuters reported via MarketScreener.
Nebius also raised its 2026 capital spending forecast to about $27 billion, from its previous range of $20 billion to $25 billion, according to Investing.com. The revised outlook means more resources are being allocated to building the infrastructure needed to provide its services before the company reaches its stated revenue targets for the following year. The gap between planned spending and targeted revenue shows the scale of the expansion the company is betting on. Assessing that plan depends on turning investment into operating capacity and revenue on the timetable set by management. The 2027 guidance is therefore an extension of the spending increase in 2026, rather than a figure separate from the current expansion plan.
Third-quarter revenue was $980.8 million, up 571% year over year and above analysts' estimates of $907.2 million, according to Investing.com. The results reflect strong business growth during the quarter, alongside a much larger capital spending plan for the coming years. The company said customer prepayments in the third quarter covered more than 100% of contract-related capital spending, including data center and network construction, Reuters reported via MarketScreener. Contract-linked prepayments provide a source of funding for the spending allocated to fulfill those contracts. This puts the financing of contracted expansion among the factors the company is explaining to investors alongside its revenue and spending targets.
Attention on the 2027 plan is turning to execution, including when the capacity needed to provide services will be available. Reuters reported that partner capacity was delayed until the first half of 2027, a factor that could affect the timing of revenue tied to that capacity. The company is targeting revenue of $12 billion to $13 billion during the year, alongside pretax break-even by year-end. The combination of these targets and the elevated capital spending plan makes progress on data center and network construction a key factor in assessing the operational trajectory. Nebius is scheduled to hold a call to discuss its third-quarter results on November 12, 2026, at 8:00 a.m. Eastern time, according to its investor center.
The results followed sharp moves in the stock in the preceding period. Shares rose more than 15% in Wednesday's session, November 11, after rival CoreWeave reported results, Reuters reported via MarketScreener. In premarket trading on Thursday, November 12, the stock fell more than 10% despite third-quarter results topping analyst estimates, according to Investing.com. Premarket trading does not represent the session's final result, and the available facts do not include a verified percentage change at the November 12 close. The stock closed at $154.69 on November 11, according to EL7 data. Reuters also said the stock lost more than a third of its value in October amid a selloff in AI and data center shares and financing concerns.