Nebius Group surges as AI cloud revenue smashes forecasts

Nebius Group (NASDAQ:NBIS) reported a first-quarter profit of $621.2 million, or $2.11 per share.

The bottom line was significantly bolstered by a $780.6 million non-cash gain related to the revaluation of equity investments.

On an adjusted basis, which excludes one-time items, the company reported a loss of $0.23 per share—far narrower than the $0.81 loss per share anticipated by analysts surveyed by Zacks Investment Research.

Revenue for the quarter skyrocketed 684% year-over-year to $399 million, comfortably beating the consensus estimate of $316.9 million.

The explosive growth was driven by the company’s AI cloud business, which now accounts for the vast majority of total group revenue as demand for high-performance GPU compute remains supply-constrained globally.

Beyond the financials, Nebius unveiled two major infrastructure milestones.

The company has secured land and 1.2 gigawatts (GW) of power for a new "AI factory" in Pennsylvania and confirmed it has broken ground on another gigawatt-scale facility in Missouri.

These moves are part of a massive $16 billion to $20 billion capital expenditure plan for 2026 aimed at meeting a contracted backlog that is reportedly approaching $50 billion.

The company’s shift into the elite tier of AI infrastructure providers was further cemented by a recent $2 billion equity investment from Nvidia and large-scale multi-year agreements with Microsoft and Meta.