Nebius Group (NASDAQ:NBIS) Releases Earnings Results

Nebius Group (NASDAQ:NBIS) issued its quarterly earnings results on Wednesday. The company reported ($0.68) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.72) by $0.04, RTT News reports. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The company had revenue of $582.30 million for the quarter, compared to analyst estimates of $569.89 million. During the same quarter last year, the company posted $2.38 EPS.

Here are the key takeaways from Nebius Group’s conference call:

• Q2 revenue surged 454% year over year to $582 million, while annualized run-rate revenue reached $3 billion. Adjusted EBITDA rose to $236 million, with a 41% group margin and a 50% margin for the Nebius AI business.
• Nebius closed four landmark AI cloud contracts averaging more than $1 billion each, with mid-term pricing of $20 million–$25 million per megawatt and upfront payments covering roughly 50%–60% of associated capital expenditures. Management said it could sell all planned 2027 capacity today but is reserving some for higher-priced short-term deals.
• Demand and pricing remained exceptionally strong: a capacity auction cleared at a record price, 15% above Nebius’ previous peak, while short-term three- to six-month training engagements are being negotiated at $40 million–$50 million or more per megawatt. The company also raised its year-end contracted-power target to 5 gigawatts and expects to deploy more than 1 gigawatt of new capacity annually from 2027.
• Nebius expanded its funding flexibility through more than $9 billion of expected customer prepayments, $8 billion in cash and equivalents at quarter-end, and a $775 million asset-backed debt facility priced at SOFR plus 250 basis points. Management said its roughly $40 billion contracted backlog provides a scalable base for additional asset-backed financing.
• Growth requires substantial funding, with Q2 capital expenditures of approximately $5.7 billion and full-year 2026 CapEx guidance of $20 billion–$25 billion. The company also issued 12.7 million shares through its ATM program for about $2.8 billion, creating potential shareholder dilution, while its 2026 revenue and margin guidance was reaffirmed rather than raised.

Nebius Group Trading Up 28.5%

NASDAQ NBIS traded up $55.08 during mid-day trading on Wednesday, reaching $248.31. 41,964,657 shares of the stock were exchanged, compared to its average volume of 17,505,242. The stock has a market cap of $62.83 billion, a P/E ratio of 80.10 and a beta of 4.23. The company has a debt-to-equity ratio of 1.16, a current ratio of 8.33 and a quick ratio of 8.33. Nebius Group has a one year low of $62.01 and a one year high of $299.86. The stock has a 50 day simple moving average of $221.48 and a 200-day simple moving average of $165.09.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on NBIS shares. Northland Securities lifted their target price on Nebius Group from $248.00 to $410.00 and gave the company an “outperform” rating in a research report on Monday, July 20th. Zacks Research downgraded shares of Nebius Group from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 31st. Weiss Ratings raised shares of Nebius Group from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, May 20th. Wall Street Zen cut shares of Nebius Group from a “sell” rating to a “strong sell” rating in a research report on Saturday. Finally, Piper Sandler assumed coverage on shares of Nebius Group in a report on Monday, August 3rd. They set a “neutral” rating and a $224.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $216.29.

Insider Activity

In related news, CEO Arkadiy Volozh sold 46,627 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $10,978,327.15. Following the sale, the chief executive officer owned 821,662 shares in the company, valued at $193,460,317.90. This represents a 5.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Andrey Korolenko sold 33,871 shares of Nebius Group stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total value of $7,974,926.95. Following the completion of the sale, the insider owned 551,338 shares of the company’s stock, valued at approximately $129,812,532.10. The trade was a 5.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 140,810 shares of company stock worth $33,548,588.

Hedge Funds Weigh In On Nebius Group

Hedge funds have recently modified their holdings of the company. State Street Corp boosted its holdings in shares of Nebius Group by 2,391.3% in the fourth quarter. State Street Corp now owns 3,219,326 shares of the company’s stock worth $269,474,000 after acquiring an additional 3,090,103 shares during the period. Qube Research & Technologies Ltd purchased a new stake in Nebius Group during the 3rd quarter worth about $238,511,000. Orbis Allan Gray Ltd lifted its holdings in Nebius Group by 12.4% during the 2nd quarter. Orbis Allan Gray Ltd now owns 17,651,930 shares of the company’s stock worth $976,681,000 after purchasing an additional 1,949,708 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in Nebius Group in the 4th quarter worth about $122,335,000. Finally, Janus Henderson Group PLC boosted its stake in Nebius Group by 102.6% in the 4th quarter. Janus Henderson Group PLC now owns 2,804,820 shares of the company’s stock worth $234,777,000 after purchasing an additional 1,420,353 shares during the period. Institutional investors own 21.90% of the company’s stock.

More Nebius Group News

Here are the key news stories impacting Nebius Group this week:

• Positive Sentiment: Q2 results exceeded expectations. Nebius reported revenue of $582.3 million, ahead of estimates near $570 million, while its quarterly loss of $0.68 per share was narrower than the consensus loss of $0.72. Another estimate cited by Zacks showed an even larger earnings beat, with a $0.12 loss versus expectations for a $0.67 loss. Nebius beats quarterly revenue estimates as AI demand fuels growth
• Positive Sentiment: AI-cloud growth remains exceptionally strong. Core AI revenue reportedly rose more than 500% year over year, with one report citing 514% growth to $575 million. Annualized recurring revenue increased 56% sequentially to approximately $3 billion, and management said demand for AI capacity continues to grow exponentially. NBIS Stock Surges After Nebius Q2 Revenue Soars 454%
• Positive Sentiment: Contract visibility and economics improved. Contracted value quadrupled, contracted power guidance rose to 5 gigawatts, and AI operations reportedly generated a 50% adjusted EBITDA margin. Four large AI agreements and a roughly $3 billion run-rate reinforced the growth narrative. Nebius’ Q2 Just Made The Bull Case Stronger
• Positive Sentiment: Nebius selected Bloom Energy as a behind-the-meter power partner for a flagship AI data center, potentially helping address electricity constraints and accelerate capacity deployment. Bloom Energy Jumps as Nebius Picks Its Fuel Cells
• Neutral Sentiment: The shares reclaimed their 50-day moving average, and elevated trading volume indicated strong investor interest. However, the stock remains highly volatile and trades at a demanding valuation after a substantial run-up.
• Negative Sentiment: Full-year guidance was mixed. Nebius projected 2026 revenue of $3.0 billion to $3.4 billion, with the upper end roughly in line with consensus but the midpoint below the $3.4 billion estimate, potentially limiting additional upside.
• Negative Sentiment: Investors continue to weigh heavy capital requirements for data centers, GPU and power shortages, possible project delays—including concerns surrounding the Vineland facility—and the need to execute a multibillion-dollar expansion plan. Michael Burry’s reported short position and substantial recent insider selling add further caution. Michael Burry Just Shorted Nebius

Nebius Group Company Profile

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability.