Nebius beats quarterly revenue estimates on strong AI demand
ReutersThe Amsterdam-based company's shares, which surged more than 15% on Wednesday after neocloud rival CoreWeave's results, were marginally up in volatile premarket trading.
Nebius reported revenue of $981 million for the quarter ended September 30, compared with analysts' average estimate of $907.5 million, according to data compiled by LSEG.
However, its 2026 revenue forecast range of $3 billion to $3.4 billion was slightly lower than market estimates of $3.37 billion at the midpoint.
The company expects to break even on a pre-tax basis by the end of 2027.
Nebius had lost more than a third of its value last month amid a steep selloff in AI and data center stocks, as investors fretted over the massive debt pile at CoreWeave and raised concerns about the neoclouds' capacity to raise funds under tighter market conditions.
Nebius' results follow a strong showing from CoreWeave , which raised its annual revenue forecast on Tuesday and said it was targeting profitability on an adjusted basis in the first half of 2028.
Nebius said its customers committed to longer deals at higher prices in the third quarter and paid more money up front.
Those prepayments covered more than 100% of the capital spending associated with those contracts in the third quarter, including data center construction and networking, the company said.