Nebius Reports 547% Revenue Surge, Targets $9 Billion ARR by 2026

Nebius delivered an exceptional financial performance in the fourth quarter, reporting revenue of $227.7 million, a staggering 547% increase year-over-year. The company's implied gross margins reached nearly 70%, highlighting strong operational efficiency within its AI infrastructure segment. Looking ahead, Nebius has set aggressive long-term targets, aiming for Annual Recurring Revenue (ARR) between $7 billion and $9 billion by 2026. To support this hypergrowth, the firm is scaling its power capacity with a target of over 3GW in contracted power for AI data centers. While the high capital expenditure (CapEx) required for such scaling remains a consideration for investors, the triple-digit growth signals robust market demand. This strategic expansion positions Nebius as a significant player in the rapidly evolving global AI infrastructure landscape.