Nebius Stock Falls 10% After Weak Outlook Despite 571% Revenue Jump
Nebius shares fell 10% on Thursday after the AI cloud company said it expects to spend more on data centers this year and guided to
Nebius shares fell 10% on Thursday after the AI cloud company said it expects to spend more on data centers this year and guided to the low end of its 2026 revenue range. The warning overshadowed a third quarter in which sales more than quadrupled and topped Wall Street forecasts.
Revenue came in at $980.8 million, against analyst estimates of $907.5 million compiled by LSEG. The company said revenue jumped 571% from a year earlier.
Nebius reported a net loss of $37.5 million, or 13 cents per share. A year ago it lost $119.6 million, or 50 cents per share. It was not immediately clear whether that figure is comparable with the 69-cent loss analysts had expected.
Guidance and spending
In a letter to shareholders, CEO Arkady Volozh said Nebius expects 2026 revenue at the low end of its $3 billion to $3.4 billion forecast. The company also said capital spending, the money it pours into data centers and computing hardware, will run higher than planned this year.
That combination drove the selloff. Investors have been pressing Nebius over how it will pay for its buildout, and the company addressed financing worries in its update.
A rough month for neoclouds
Nebius is a "neocloud," a company that rents out computing power mainly to train and run AI models. Unlike Google Cloud or Microsoft Azure, neoclouds focus on that one job rather than general-purpose cloud services.
The group has had a bruising stretch. At the end of October, Nebius had lost roughly a quarter of its value in a month, as investors questioned whether such companies can earn attractive returns on the huge sums they spend. Financing AI infrastructure has also grown more expensive.
Peers IREN and CoreWeave both posted better-than-expected results over the past week, and neocloud shares had rebounded before Nebius reported. Nvidia, which invests across the sector, has added volatility because of a crisis surrounding its CEO, Jensen Huang.
Nebius shares had already been under pressure ahead of the report, even as CoreWeave rallied.
