Nebius Tumbles After Trimming 2026 View to Low End of Range

Nebius Group (NASDAQ:NBIS) stock fell about 16% in early trading Thursday. The AI cloud company beat estimates for the third quarter and guided fiscal 2027 revenue above analyst expectations, but said it now expects 2026 revenue at the low end of its $3 billion to $3.4 billion range.

The company reported adjusted quarterly earnings of 30 cents per share, beating the analyst consensus estimate of a loss of 69 cents by 144.93%. This represents a 177.5% improvement from the loss of 40 cents per share reported in the same period last year.

Nebius Group reported quarterly revenue of $980.8 million, beating the analyst consensus estimate of $907.53 million by 8.07%. This represents a 571.32% increase from revenue of $146.1 million in the same period last year, according to Benzinga Pro.

Adjusted EBITDA, a measure of operating profit before interest, taxes, depreciation and certain other items, was $465.8 million. That compared with an adjusted EBITDA loss of $5.2 million a year earlier.

Revenue Outlook

Nebius Group expects fiscal 2027 revenue of $12 billion to $13 billion, compared with the analyst estimate of $11.976 billion.

The company reaffirmed its fiscal 2026 revenue outlook of $3 billion to $3.4 billion, compared with the analyst estimate of $3.372 billion, but said in its shareholder letter that it now expects revenue at the low end of that range, with an adjusted EBITDA margin of about 40%.

Customer Deals

Nebius said in its letter to shareholders that Databricks, Datadog Inc. (NASDAQ:DDOG) and Snowflake Inc. (NYSE:SNOW) have signed multi-year AI cloud agreements, while Palantir Technologies Inc. (NASDAQ:PLTR) named the company its preferred AI cloud partner. Financial terms were not disclosed.

Nebius also said the remaining capacity in its New Jersey facility allocated to Microsoft Corp. (NASDAQ:MSFT) has been delayed until the second quarter of 2027. The company expects more than half of the capacity to be delivered by year-end.

Cash Flow and Spending

Operating activities used $273 million in cash during the quarter. Purchases of property and equipment, which include data center buildout, totaled $7.3 billion, up from $955.5 million a year earlier.

Cash and cash equivalents stood at $7.43 billion as of Sept. 30. Non-current debt rose to $14 billion from $4.1 billion at the end of 2025.

Nebius CEO Arkady Volozh said prepayments from third-quarter agreements covered more than 100% of the associated capital expenditures. The company expects to achieve pre-tax breakeven by the end of 2027.

NBIS Price Action: Nebius shares were down 15.86% at $130.16 at the time of publication Thursday, according to Benzinga Pro data.

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