Nebius Group Q2 Earnings Crush Expectations as AI Infrastructure Demand Drives 454% Revenue Surge

This AI-linked name has more than tripled in 2026. Bank of America says it still has steam

Nebius Group has more than tripled this year due to the artificial intelligence boom, but it still has more room to rally, according to Bank of America. The bank maintained its buy rating on the cloud computing name. It hiked its price target on shares to $310 from $280, implying nearly 20% upside from Wednesday's close. Nebius boasts "rapidly expanding, AI-optimized cloud infrastructure and strong global data center pipeline, positioning it to benefit from demand for large-scale AI Compute," analyst Tal Liani said Wednesday in a note to clients. "Management's track record of execution and the company's unified, end-to-end platform creates durable competitive advantages that support continued growth." The price target hike comes after Nebius reported on Wednesday better-than-expected financial results for the second quarter. NBIS YTD mountain NBIS year to date Nebius posted adjusted EBITDA of $236.2 million for the period, well above the $168.8 million expected by analysts polled by FactSet. Revenue came in at $582.3 million, topping the Street's consensus estimate of $569.9 million. The company also reiterated its full-year guidance on revenue and other key financial metrics. Those updates could boost investor confidence in Nebius' business, driving value to its shares, per Bank of America. "Nebius Group reported robust 2Q26 results," Liani wrote. "Importantly, management maintained its target for 800MW-1GW of connected power by [the end of 2026], helping address recent investor concerns on site-specific ramp schedules." Shares were down more than 4% in premarket trading on Thursday. However, the stock has surged 210% year to date as Nebius has seen an explosion in demand for its cloud computing services due to accelerating AI adoption. Bank of America's call falls in line with consensus on Wall Street. Of the 19 analysts covering Nebius, 13 have a buy or strong buy rating on the stock, LSEG data shows.

Nebius Q2 2026 earnings: AI cloud revenue surges 454%

Nebius Group reported second-quarter revenue of $582 million on Wednesday, up 454% from the same period a year earlier, sending its stock up 28%. Revenue from the company's core AI cloud business rose sixfold to $575 million in the quarter, the company said. Wall Street had expected total revenue of $570 million, according to Barron's. Nebius also posted adjusted EBITDA of $236 million for the quarter, swinging from an adjusted EBITDA loss of $21 million in the second quarter of 2025. The company reported a net loss from continuing operations of $190 million, compared with net income of $502 million in the year-earlier period, which had included a large gain from the revaluation of equity investments. Nebius is what the industry calls a neocloud, meaning it offers cloud infrastructure built specifically around artificial intelligence and high-performance computing workloads, according to Barron's. The company is listed on Nasdaq $NDAQ under the ticker NBIS and is headquartered in Amsterdam. Capital spending accelerated during the quarter. Purchases of property and equipment and intangible assets reached $5.66 billion in the three months ended June 30, up from $511 million in the same period a year earlier, the company said. Wednesday's rally was on track to be the biggest one-day percentage advance for the stock since September 2025, according to Dow Jones Market Data. Short-seller pressure may have contributed to the move. Roughly 60.2 million Nebius shares were short as of late July, amounting to close to 30% of the float. Michael Burry, the investor who rose to prominence by predicting the 2008 subprime mortgage crisis, revealed a short position in Nebius at roughly $211.77 per share last week. A surge of good news can catch short sellers off guard, compelling them to close out losing bets by purchasing shares -- a dynamic known as a short squeeze that amplifies upward price moves. For the first half of 2026, Nebius reported total revenue of $981 million, up 529% from the same period a year earlier, the company said.

Nebius shares jump 34% on continued AI infrastructure demand

Shares of Nebius Group NV closed 34% higher today after it reported second quarter earnings that topped expectations across the board. The Netherlands-based company operates a cloud platform optimized for artificial intelligence workloads. It also has two business units called Avride and TripleTen that offer autonomous driving software and programming courses, respectively. Nebius' revenue surged 454% year-over-year in the second quarter to $582.3 million. That put the company about $10 million ahead of the LSEG consensus estimate. Much of the growth was driven by large customers: Nebius disclosed that it signed four data center deals with an average value of more than $1 billion. The company inked one of the deals with Cohere Inc., a venture-backed language model developer. Nebius won the three other contracts from startup Reflection AI Inc., an unnamed neocloud operator and investment firm trading firm. Nebius earlier signed cloud deals with Meta Platforms Inc. and Microsoft Corp. that are expected to be worth up to $46.4 billion. The company is investing heavily in new data centers to address customer demand. In early March, Nebius announced plans to open a Missouri data center campus with up to 1.2 gigawatts of computing capacity. A few weeks later, it inked a deal to build a 310-megawatt site in Finland. Nebius sells not only infrastructure but also cloud services designed to speed up AI projects. It offers managed versions of PostgreSQL and MLFlow, an open-source tool for debugging LLM-powered applications. In June, Nebius launched an AI agent that automates tasks such as provisioning virtual machines. The company's capital expenditures, a line item that covers large purchases such as data centers, jumped to $5.7 billion in the second quarter. Analysts had forecasted $4.7 billion. One of the reasons the spending boost didn't weigh on Nebius' stock price is that it expects to realize a return fairly soon. According to the company, its second quarter capital expenditures have a payback period of one year and 10 months. Furthermore, Nebius finances more than half its expenses with customer prepayments. Despite its growing infrastructure expenses, the company moved significantly closer to profitability in the second quarter. Nebius lost $33.2 million in the three months ended June 30, which represents a 64% year-over-year decrease. That translates to an adjusted loss of $0.12 per share, well below the $0.67 per share that analysts had expected. Nebius today boosted its 2026 contracted power target, a measure of its data center capacity, to five gigawatts. The company plans to bring more than one gigawatt of computing capacity online annually from 2027 onwards.

This Nvidia-Backed Cloud Company's Stock Is Soaring on Stronger-Than-Expected Earnings

Get personalized, AI-powered answers built on 27+ years of trusted expertise. Nebius shares could be set to add more than one-quarter of their value in a single session. Shares of Nebius (NBIS) were up nearly 29% in recent trading to pace the Nasdaq, after the AI infrastructure firm posted second-quarter results that topped analysts' estimates. The Nvidia-backed (NVDA) company, whose core business is a full-stack AI cloud, reported adjusted EBITDA of $236.2 million on revenue that jumped 454% year-over-year to $582.3 million. Analysts polled by Visible Alpha had expected $168.9 million and $570.7 million, respectively. "We continue to build our future capacity pipeline through our own and co-located colocated sites, and today raise our year-end contracted power target to 5 gigawatts," CEO Arkady Volozh said on the company's earnings call, according to a transcript provided by AlphaSense. With Wednesday's gains, Nebius shares have roughly tripled in value this year, though they remain about 17% off their June highs.

Why did Nebius stock surge after its latest earnings? - Nebius Stock Soars After Q2 Earnings

Why did Nebius stock surge after its latest earnings? 1/10 Nebius Stock Soars After Q2 Earnings Nebius Group shares surged as much as 34% after the AI cloud infrastructure company reported better-than-expected second-quarter results. The strong performance highlighted accelerating demand for AI computing capacity. (Sources: MarketScreener, Barchart, The Motley Fool) 2/10 Revenue Jumps 454% Nebius reported $582 million in second-quarter revenue, marking a 454% year-on-year increase. Revenue also came in ahead of Wall Street expectations of around $578 million, with the AI cloud business driving much of the growth. 3/10 AI Cloud Revenue Leads Growth Nebius' AI cloud operations continued to expand rapidly as customers raced to secure computing capacity. The results highlight strong demand for GPUs and AI infrastructure as companies scale artificial intelligence training and inference workloads. 4/10 Profitability Improves Sharply Nebius posted a $236 million adjusted profit measure for the quarter, compared with a loss a year earlier. However, the company continues to report a net loss as it commits substantial capital toward expanding its AI infrastructure. 5/10 Burry's Short Takes a Hit Investor Michael Burry disclosed a short position in Nebius shortly before the earnings report. His bearish position came under pressure after the stock surged following the results, highlighting the risks of betting against fast-growing AI infrastructure companies. 6/10 CoreWeave Also Rallies Nebius was not alone in benefiting from the AI infrastructure boom. CoreWeave shares also jumped about 19%-20% alongside Nebius, as investors responded positively to strong results and an upbeat outlook for AI computing demand. 7/10 AI Infrastructure Race Intensifies The performances of Nebius and CoreWeave suggest that demand for AI infrastructure remains robust despite concerns over elevated valuations. Both companies are pursuing rapid expansion as businesses increase spending on AI model development and deployment. 8/10 The Big Risk: Heavy Spending The strong growth opportunity comes with significant capital requirements. Nebius is investing heavily to expand its data-centre footprint and GPU capacity, leaving investors focused on whether revenue growth can eventually translate into sustainable cash flow and profits. 9/10 What Investors Will Watch Investors will closely track Nebius' AI cloud revenue growth, new customer contracts, capacity commitments and capital expenditure. GPU availability, pricing, profitability and free cash flow will also remain important indicators of whether its rapid expansion can be sustained. 10/10 Bottom Line Nebius' strong quarter has strengthened the bullish case for AI infrastructure stocks. The 454% revenue surge and sharp post-earnings rally show that demand for AI computing remains powerful, although heavy investment requirements and valuation risks could remain key challenges.

Nebius Jumps 20% Days After Michael Burry Said His AI Shorts Were Like 'Shooting Fish in a Barrel' Nebius

Nebius now expects to recoup the capex and related operating costs on its second-quarter deals in one year and 10 months, down from its previous range of two to three years. Burry's concern with the AI buildout comes down largely to the returns on enormous capital spending: billions are going into chips and data centers today, with uncertainty over how much those assets will ultimately earn. Wednesday's results offered a direct counterpoint: Nebius says the returns on that spending are arriving faster, with projected payback periods falling below two years. Nebius Says Its AI Payback Period Is Getting Shorter CEO Arkady Volozh described the quarter as a step-change in the economics of the business, saying Nebius could sell all of its 2027 capacity on those terms today but is deliberately holding some back. Revenue rose 454% to $582.3 million, while adjusted EBITDA swung to $236.2 million from a $21 million loss a year earlier. Second-quarter deals generated more than $20 million in annual contract value per megawatt, versus a roughly $12 million base for 2026. Around 70% of those deals included prepayments, which cover 50% to 60% of the associated capex. Why That Matters for Burry's Short Burry isn't arguing that nobody wants AI compute. His concern is what happens if companies lock in billions of dollars of long-term infrastructure commitments and the returns fail to keep pace. If the sub-two-year payback holds, it weakens an important part of Burry's thesis. But Nebius is still spending aggressively, raising its year-end contracted-power target to 5 gigawatts and taking on more upfront capital needs in the process. Prediction Traders Aren't Betting on an AI Bust Prediction-market traders aren't pricing an imminent collapse in the AI infrastructure boom. Polymarket gives a roughly 15% chance of an AI-industry downturn by the end of 2026, with nearly $3 million wagered on the market. The contract sets a high bar, requiring at least three major stress signals within 90 days, including Nvidia falling 50% from its record high, the SOXX semiconductor ETF dropping 40% or H100 compute rental prices collapsing to $1 per hour. Nebius' latest results point in the opposite direction for now: the company says its first Blackwell capacity auction cleared the highest price it has achieved to date, while projected payback on its newest deals has fallen below two years. Image: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Nebius shares soar 22% as AI demand powers revenue beat

Nebius shares jumped nearly 22% after the AI cloud provider beat revenue estimates, driven by surging infrastructure demand, larger contracts and higher prices. Core AI cloud revenue increased sixfold, while major customer deals and capacity commitments highlighted strong future growth. Nebius shares surged nearly 22% on Wednesday after the cloud-computing company beat quarterly revenue estimates, driven by booming demand for AI infrastructure, larger contracts and higher prices, Reuters reported. The stock traded between $216.11 and $235.96 after opening at $226, compared with its previous close of $193.23. US MarketsPowered By As on 12 Aug 2026, 09:43 PM IST S&P 500 Top Gainers Super Micro Computer35.73(13.07%) Seagate Technology Hldgs884.61(7.81%) Teradyne406.70(7.15%) Micron Technology926.51(6.68%) Gainers" S&P 500 Top Losers Coterra Energy32.56(-8.62%) First Solar227.18(-5.70%) Texas Pacific Land345.00(-5.47%) Charter Communications149.90(-4.94%) Losers" Nebius reported its results a day after its larger rival CoreWeave raised its annual forecasts, fuelling a broader rally in AI infrastructure stocks as both companies signalled that demand for computing capacity continued to outpace supply. Nebius reported a sixfold surge in revenue from its core AI cloud business, which took overall sales to $582.3 million in the June ended quarter, beating analysts' estimates of $572.75 million, according to LSEG data. Nebius is turning rising demand into "contracted, profitable growth," CEO Arkady Volozh told Reuters. The Nvidia-powered AI cloud provider secured four deals averaging over $1 billion each, nearly quadrupling its total contract value, while contracts from new customers surged more than ninefold. Asked about growing competition from newcomers such as xAI, Volozh told Reuters that demand for AI computing continued to far outstrip supply, adding that Nebius could sell its entire planned capacity for 2027 at current terms. Emarketer analyst Jacob Bourne said that demand for AI cloud capacity remained strong despite increasing competition. However, he said the key question was whether that demand would prove diversified and sustainable beyond the AI industry. Nebius spent about $5.7 billion during the quarter, above analysts' estimate of $4.7 billion, as it continued to invest heavily in GPUs and data-centre expansion. The company said AI cloud contracts signed during the period, with annual values exceeding $20 million per megawatt, were expected to come online late in the fourth quarter. Nebius raised its contracted power target for 2026 to 5 gigawatts from more than 4 GW and plans to add over 1 GW of capacity annually from 2027 -- enough to power about 750,000 US homes. It expects more than $9 billion in customer prepayments this year and has secured over $40 billion in customer commitments. (Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)

Why Is Nebius Group Stock Soaring Wednesday? - Nebius Group (NASDAQ:NBIS)

NVIDIA-Backed Nebius Says AI Capacity Demand Is So Hot It Could Sell Out 2027 Today Nebius reported an adjusted loss of 68 cents per share, missing the consensus estimate for a loss of 62 cents per share. Revenue surged 454% year over year to $582.3 million, beating the Street estimate of $572.75 million. Group revenue also rose 46% sequentially, driven by capacity expansion, higher pricing and improved utilization. Adjusted EBITDA reached $236.2 million, compared with an adjusted EBITDA loss of $21 million a year earlier. The company posted an adjusted net loss of $33.2 million, narrowing from $91.5 million a year ago. Nebius AI cloud generated $574.9 million in revenue, up 514% year over year and accounting for about 98% of group revenue. Annualized run-rate revenue reached $3 billion, up 56% from $1.9 billion at the end of March. The AI cloud business generated $285.7 million in adjusted EBITDA, with its margin reaching 49.7%. Group adjusted EBITDA improved by $106.7 million sequentially. AI Deals Accelerate Founder and CEO Arkady Volozh called the second quarter the company's strongest commercial quarter yet. Nebius closed four major AI cloud deals with an average total contract value of more than $1 billion each. Total contract value for deals signed during the quarter grew nearly fourfold sequentially, while new-customer contract value increased more than ninefold. The company said roughly 70% of deals included customer prepayments. Those terms reduced the expected payback period for associated investments to one year and 10 months from a historical range of two to three years. Nebius also said it secured its highest price to date for NVIDIA Blackwell chips through its first capacity auction pilot. Nebius said AI capacity demand is so strong that it could sell its entire 2027 capacity on current terms today, but is deliberately holding some back for immediate customer needs. The company said demand continues to grow "exponentially" after its strongest commercial quarter yet, when it closed four AI cloud deals averaging more than $1 billion each. Capacity Buildout Picks Up Nebius raised its year-end 2026 contracted power forecast to 5 gigawatts from more than 4 GW previously. The company plans to deploy more than 1 GW of capacity annually starting in 2027. The company has already received its first NVIDIA Vera Rubin NVL72 systems and is testing the architecture across its computing, networking and orchestration stack. It said it is already engaging with customers about Vera Rubin access. Nebius reaffirmed its full-year 2026 guidance across all metrics and expects more than $9 billion in customer prepayments this year. Cash And Investment Nebius ended June with $8.04 billion in cash and cash equivalents. Operating cash flow from continuing operations reached $2.25 billion in the second quarter. Capital expenditures were about $5.7 billion, largely reflecting purchases of GPUs and related hardware and data center expansion. In July, Nebius secured $775 million in asset-backed financing at SOFR plus 2.50%. The company said it has more than $40 billion in customer commitments. NBIS Price Action: Nebius Group shares were up 15.69% at $223.55 during premarket trading on Wednesday, according to Benzinga Pro data. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Nebius Q2 Outlook: Will Goldman's $35.5 Billion Revenue Forecast Overpower Jim Cramer's 'Sell' Warning? -

The upcoming second-quarter results will test whether the AI cloud provider's massive capacity expansion can outpace the broader sector's recent volatility. Goldman's Trillion-Dollar Blueprint CEO Arkady Volozh emphasized the company's unique market position, noting, "We are building an AI-native hyperscaler." The demand is palpable; as Volozh stated, there are typically "several customers competing for every GPU we bring online." This insatiable appetite drove the first-quarter pipeline generation up 3.5 times sequentially, prompting Nebius to raise its 2026 CapEx guidance to between $20 billion and $25 billion to support capacity expansion tied to expected 2027 demand. Cramer's Margin Warning and ETF Volatility Conversely, Cramer has sounded the alarm on the broader AI infrastructure trade, particularly for retail traders using leverage. "If you're borrowing money to buy something related to the data center, then... ...sell it no matter what," Cramer warned on CNBC. "You won't regret it." Q2 Expectations and Margin Squeeze Looking ahead to the second-quarter report, Wall Street consensus estimates, according to Benzinga, project revenue of $576.7 million and a non-GAAP EPS loss of $0.82. How Has NBIS Performed In 2026? NBIS shares rose 130.85% year-to-date, advanced 175.10% over the last year, and 118.07% over the last six months. It closed 4.95% higher at $193.23 per share on Tuesday, and it was 7.54% higher in overnight trading. Benzinga's Edge Stock Rankings indicate that NBIS maintains a strong price trend in the long term but a weak trend in the short and medium terms, with a poor value score. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: ChristianLphoto / Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Nebius Q2 Swings to Loss, Revenue Rises; Shares Up Pre-Bell

Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.

Nebius beats quarterly revenue estimates as AI demand fuels growth

Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.