Nebius shares drop 10% after AI cloud firm's 2026 revenue guidance falls short
The Nasdaq-listed AI infrastructure company posted 571% revenue growth for the third quarter but trimmed its full-year outlook and outlined a sharp jump in 2027 spending.
Shares of Nebius Group, the Amsterdam-based artificial intelligence cloud company, fell roughly 10% in premarket trading this week after it reported third-quarter revenue that beat Wall Street estimates but narrowed its full-year guidance and disclosed a sharp increase in planned capital spending for next year. Nebius Group N.V., which trades on the Nasdaq under the ticker NBIS, said in its quarterly results that revenue reached $980.8 million for the three months ended Sept. 30, up 571% from $146.1 million a year earlier.
The company's adjusted earnings before interest, taxes, depreciation and amortization came to $465.8 million, reversing a $5.2 million loss in the same period last year, according to its earnings release. Nebius posted a net loss from continuing operations of $37.5 million under standard accounting rules, narrower than its $119.6 million loss a year earlier. Despite the quarterly beat, founder and chief executive Arkady Volozh told shareholders in his quarterly letter that the company now expects 2026 revenue "at the low end" of its previously announced $3.0 billion to $3.4 billion range, after a portion of this year's revenue shifted into early 2027. Capital expenditures totaled $7.3 billion for the quarter and $15.4 billion for the first nine months of the year, both sharply higher than year-ago levels.
A bigger bet on 2027
In the same letter, Volozh gave the company's first detailed outlook for 2027, projecting revenue of $12 billion to $13 billion and capital expenditures of $40 billion to $45 billion as it continues adding more than a gigawatt of new data-center capacity each year. He said Nebius expects to reach "pre-tax breakeven" by the end of 2027 and that customer prepayments and financing against existing contracts should cover 75% to 85% of next year's capital costs. The company said customers have committed more than $12 billion in new contract value since the start of the third quarter, including first-time agreements with Databricks, Datadog, Palantir and Snowflake.
The stock's decline this week followed a broader pullback in AI infrastructure shares in recent weeks amid investor scrutiny of how heavily capitalized "neocloud" providers are funding their data-center buildouts, a concern also flagged in other market coverage of the report. The company's full financial results and Volozh's letter are posted on its investor relations site, which also showed total assets grew to $38.7 billion as of Sept. 30 from $12.4 billion at the start of the year.
