Nebius Group (NBIS) Earnings Date & Reports
Nebius is a vertically integrated cloud provider focusing on AI and high-performance computing... Show more
NBIS is expected to report earnings to fall 132.96% to -5654 cents per share on July 29
Nebius Group N.V. (NBIS) Q1 2026 Earnings Recap: Revenue Explodes 684% on AI Demand Surge
Key Takeaways
- Nebius Group reported Q1 2026 revenue of $399 million, a 684% year-over-year increase from $50.9 million, beating consensus estimates around $375-389 million.
- Adjusted EBITDA swung to a positive $129.5 million from a $53.7 million loss last year, with group margin at 32%.
- Net income from continuing operations reached $621.2 million, driven by a $781 million non-cash gain on ClickHouse investment revaluation; diluted EPS was $2.11 versus consensus loss expectations of about -$0.78.
- Nebius AI cloud revenue hit $389.7 million (98% of group total), with annualized run-rate (ARR) at $1.92 billion, up 54% quarter-over-quarter.
- Secured up to 1.2 GW power for a new Pennsylvania AI factory; raised year-end 2026 contracted power target to over 4 GW.
- Cash and equivalents ended at $9.3 billion, with $2.3 billion positive operating cash flow despite $2.5 billion capex.
Earnings Context and Why It Matters
Nebius Group N.V. (NBIS), an AI infrastructure provider formerly part of Yandex, has pivoted aggressively to meet surging global demand for GPU compute. This Q1 2026 report underscores its transformation amid the AI boom, with capacity fully sold out and hyperscaler deals like a $27 billion agreement with Meta. For investors, it highlights execution on scaling data centers across the US and Europe, amid competition from hyperscalers and peers like CoreWeave. Recent stock gains reflect optimism, but heavy capex and supply chain risks remain key. This earnings validates Nebius's positioning in a market projected to require trillions in AI infrastructure spend.
Nebius Group delivered standout Q1 2026 results for the quarter ended March 31, 2026. Group revenue soared to $399 million, up 684% year-over-year from $50.9 million and exceeding analyst consensus of roughly $375-389 million. Nebius AI cloud, the core segment, generated $389.7 million (up 841% YoY), comprising 98% of total revenue, fueled by full capacity utilization and pricing power on GPU clusters.
Profitability marked a turning point: Adjusted EBITDA reached $129.5 million (32% margin), versus a $53.7 million loss prior year. Nebius AI cloud Adjusted EBITDA was $174 million (45% margin). Operating loss narrowed to $128 million. Net income from continuing operations hit $621.2 million, boosted by a $781 million non-cash gain from revaluing its ClickHouse stake; adjusted net loss was $100.3 million. Diluted EPS from continuing operations was $2.11, far surpassing expected losses around -$0.78.
Balance sheet strengthened with $9.3 billion in cash equivalents (up on $6.3 billion financing inflows). Operating cash flow flipped to $2.3 billion positive, supporting $2.5 billion capex on GPUs and data centers. ARR for Nebius AI cloud climbed to $1.92 billion, up 54% from Q4 2025's $1.25 billion.
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Market Reaction and Investor Sentiment
Shares of Nebius Group (NBIS) surged over 15% intraday on May 13, 2026, following the earnings release, reflecting investor enthusiasm for the revenue blowout, profitability inflection, and expansion announcements. Premarket gains exceeded 19%, pushing the stock toward new highs amid high volume. Sentiment turned strongly positive, with focus on the sold-out capacity, Meta deal, and NVIDIA ties signaling durable AI demand. However, some caution lingers on elevated capex and execution risks in data center builds.
Forward Outlook and Key Factors to Monitor
Nebius reaffirmed its 2026 targets: $3.0-3.4 billion in revenue and $7-9 billion ARR by year-end, underpinned by >4 GW contracted power (up from prior >3 GW guidance). The company expects 800 MW-1 GW of connected power by Q4 2026, with major capacity additions in Q3. Nebius AI cloud Adjusted EBITDA margin hit 45% in Q1 and is targeted at 40% for the full year, showcasing operating leverage.
Key expansions include a 1.2 GW owned AI factory in Pennsylvania (phased from 2027), 310 MW in Finland, and sites in Missouri, Alabama, Iceland, UK, France, Spain, and Israel. Partnerships like NVIDIA's $2 billion investment and Exemplar Cloud status enable early access to Vera Rubin NVL72 GPUs in H2 2026. Recent acquisitions—Eigen AI, Clarifai, Tavily—bolster inference, optimization, and agentic AI capabilities.
Investors should watch capex deployment ($2.5 billion in Q1, funded by cash flows, prepayments, and debt), supply chain for GPUs, customer pipeline conversion (record 3.5x QoQ growth), and hyperscaler deal ramps like Meta's $27 billion commitment. Geopolitical risks in Europe/Israel and competition intensity remain variables in this high-growth trajectory.
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an investment holding company with interest in providing internet search engine services
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