Nebius (NBIS) Stock Rallies on Q2 Beat—What Comes Next?

TLDR

• Nebius stock surged about 18% after the company reported stronger-than-expected second-quarter results.
• Revenue climbed 454% year over year to $582.3 million, beating analyst expectations of about $572.75 million.
• Nebius signed four AI-cloud contracts worth more than $1 billion each, helping ease concerns about demand for its expanding data-center capacity.
• Adjusted EBITDA reached $236.2 million, compared with a $21 million loss in the same quarter last year.
• Capital expenditure rose to $5.66 billion, while non-current debt increased to $8.50 billion as Nebius continued funding its AI infrastructure expansion.

Nebius (NBIS) stock jumped about 18% to around $233 on Wednesday after the company reported stronger second-quarter results and new large AI-cloud contracts. The report eased concerns that heavy spending on data centers was growing faster than customer demand.

Nebius Group N.V., NBIS

Revenue reached $582.3 million, up 454% from $105.1 million a year earlier. The figure topped analyst estimates of $572.75 million. Nebius also reported a GAAP loss of $0.68 per share, better than the roughly $0.86 loss expected by analysts.

The stock had fallen about 16% in the week before earnings as investors questioned whether Nebius could secure enough customers for its fast-growing infrastructure base. The quarter addressed that concern with new contracts and higher contracted capacity, while management continued building data centers to meet demand from large AI customers across key markets.

Contracts Support Nebius Stock Demand Story

Nebius said adjusted EBITDA reached $236.2 million, compared with a $21 million loss in the same period last year. Its main AI-cloud business posted an adjusted EBITDA margin of 49.7%, showing stronger operating performance as revenue expanded.

AI cloud generated $574.9 million in revenue, a 514% annual increase, and accounted for about 98% of total revenue. The company also reported an adjusted net loss of $33.2 million, or about $0.12 per share, down from $91.5 million a year earlier.

The company signed four AI-cloud contracts during the quarter, with each deal worth more than $1 billion. Total contract value nearly quadrupled from the previous quarter, while the value of new-customer contracts increased more than ninefold.

Annualized run-rate revenue rose to $3 billion from $1.9 billion at the end of March. Nebius also raised its year-end 2026 contracted-power target to 5 gigawatts from more than 4 gigawatts and kept full-year revenue guidance at $3 billion to $3.4 billion.

Heavy Spending and Debt Remain in Focus

Nebius spent $5.66 billion on capital expenditure during the quarter, up sharply from $510.6 million a year earlier. The amount also exceeded the roughly $4.7 billion analysts expected, reflecting continued investment in AI data-center capacity.

Non-current debt increased to $8.50 billion from $4.10 billion at the end of last year, while cash rose to $8.04 billion. Investor Michael Burry has disclosed a short position in Nebius, citing leverage and high capital needs as key concerns.

Management said current demand remains strong enough to support its planned capacity expansion. It also said it could sell all planned 2027 capacity under current terms, while keeping some supply available for future contracts. Wednesday’s rally showed that investors focused on contract growth, higher revenue, and improving profitability after the recent pullback in Nebius stock.

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