Nebius Group (NBIS) just posted the biggest quarter in its history. Investors still sent the AI cloud provider’s stock down about 18% on Thursday, November 12.
The selloff came after Nebius said third-party data center delays will push some 2026 revenue into next year. It also raised its spending plans far above Wall Street forecasts.
Shares traded near $127 in afternoon trading. The drop erased a 15% rally from Wednesday.
Third-quarter revenue rose 571% from the previous year to $980.8 million, according to the company’s earnings release. Analysts surveyed by LSEG expected $907.5 million.
Adjusted earnings came in at 31 cents a share, versus an expected 69-cent loss. Adjusted EBITDA swung to $465.8 million from a $5.2 million loss a year ago.
Also read: Banks that raced to fund neoclouds like CoreWeave are now hesitating
Not all of that revenue will repeat. About $325 million was non-recurring revenue tied to the company’s asset-light model, Nebius said in its shareholder letter.
Nebius trims its 2026 outlook and raises spending
- 2026 revenue: $3 billion to $3.2 billion, the low end of its prior $3 billion to $3.4 billion range, according to the earnings call. Analysts expected $3.37 billion, according to CNBC.
- 2026 capex: About $27 billion, up from $20 billion to $25 billion. FactSet expected $23.85 billion.
- Annualized revenue: More than $7 billion, now expected in February, about two months later than planned.
- 2027 capex: $40 billion to $45 billion, against a FactSet estimate of $28.77 billion.
“Where we rely on third parties, there have been delays,” CEO Arkady Volozh wrote in the letter.
The biggest slip is in New Jersey. Site operator DataOne began retiring some temporary generation ahead of permanent power, which reset the schedule.
The remaining capacity contracted by Microsoft (MSFT) there is now due in the second quarter of 2027.
The spending lands as lenders grow wary of neoclouds. Nebius dropped plans for a high-yield bond, Reuters reported, and took a one-year, $3.5 billion Citi loan in October.
Management expects prepayments and asset-backed financing to fund 75% to 85% of 2027 capex. Customers have committed more than $12 billion in contract value since the start of the third quarter.
Nebius guided 2027 revenue to $12 billion to $13 billion, roughly four times this year’s level. The midpoint tops the $11.98 billion consensus, according to Investing.com.
“We expect to reach pre-tax breakeven by the end of 2027,” Volozh wrote.
Nvidia’s CEO exit adds pressure
The report landed on the same day Nvidia (NVDA) CEO Jensen Huang resigned. CFO Colette Kress was named interim CEO, CNBC reported.
Nvidia is a Nebius investor, and the turmoil hit the whole neocloud group. CoreWeave (CRWV) sank nearly 12% and IREN (IREN) fell 8%.
Even after Thursday’s drop, Nebius shares are still up about 52% this year.
More Nebius:
- Banks that raced to fund neoclouds like CoreWeave are now hesitating
- Nebius borrows $3.5 billion as investors question neocloud debt
- Nebius stock quietly defies its own history after earnings
From Yandex spinoff to Nvidia-backed neocloud
Nebius rents Nvidia GPU capacity to AI developers, which puts it in the same “neocloud” group as CoreWeave and IREN. Its contract customers include Microsoft and Meta Platforms (META).
The Amsterdam-based company is the former parent of Russian internet group Yandex. It resumed Nasdaq trading in October 2024 after selling its Russian businesses. It also owns self-driving and delivery-robot developer Avride and edtech platform TripleTen.
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