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Nebius Second-Quarter Revenue Exceeds Estimates Amid Robust AI Cloud Gains

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Nebius Second-Quarter Revenue Exceeds Estimates Amid Robust AI Cloud Gains

Nebius (NBIS) reported stronger-than-expected second-quarter revenue on Wednesday as robust demand for artificial intelligence capacity drove more than 500% year-over-year growth in the Dutch company's cloud business.

The cloud computing company's overall revenue surged to $582.3 million for the quarter ended June from $105.1 million the year before and topping the consensus on FactSet of $569.9 million. The top-line growth is attributable to increased capacity and higher pricing, Nebius said in a shareholder letter.

"Demand for AI capacity continues to grow exponentially, and we are converting that demand into contracted, profitable growth," Chief Executive Arkady Volozh said in the letter.

AI cloud revenue, which accounted for 98% of the group topline, soared 514% to $574.9 million.

The company closed four cloud deals in the second quarter with an average total contract value of more than $1 billion each. These deals reflect a yield of $20 million to $25 million per megawatt with upfront payments that cover 50% to 60% of associated capital expenditures, Volozh said during an earnings call, according to a FactSet transcript.

Nebius' Nasdaq-listed shares gained 24% in Wednesday trade, while the stock has surged 185% so far this year.

The company signed an up to $27 billion AI infrastructure deal with Meta Platforms (META) and secured a $2 billion investment from Nvidia (NVDA) earlier in the year.

Nebius posted a net loss of $0.68 a share for the June quarter, compared with earnings of $2.38 the year before. Five analysts polled by FactSet expected a loss of $1.46.

For 2026, the Dutch tech firm continues to project revenue of between $3 billion and $3.4 billion, Chief Financial Officer Dado Alonso said on the call. The Street is looking for $3.36 billion.

Capital expenditures are still pegged at $20 billion to $25 billion for the current year.

"We remain confident in our ability to accelerate capacity deployment in the second half of the year and expect capacity deployed late in (the second quarter) to begin contributing to revenue in (the third quarter)," Alonso told analysts.

On Tuesday, CoreWeave (CRWV) reported better-than-expected second-quarter results as revenue more than doubled year on year amid strong demand for cloud computing.

Key industry players have reported strong annual cloud growth rates for their most recent quarter, with Amazon.com's (AMZN) Amazon Web Services sales surging 37% to $42.23 billion, Microsoft's (MSFT) Azure soaring 43% and Alphabet's (GOOG, GOOGL) Google cloud revenue jumping 82%.

Price: $234.80, Change: $+41.57, Percent Change: +21.51%

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