Nebius Third Quarter 2026 Earnings Report

Nebius Shares fell 10% Thursday as one of the largest publicly traded neoclouds reported third-quarter revenue that beat analysts’ estimates but issued disappointing forecasts.

Here is the company’s performance compared to the LSEG consensus:

• Loss per share: Loss of 13 cents per share
• Income: $980.8 million versus $907.5 million

It was not immediately clear whether the per-share loss compared to the 69 cents analysts expected.

Revenue jumped 571% during the quarter, according to a release. The company reported a net loss of $37.5 million, or a loss of 13 cents per share, compared with $119.6 million, or a loss of 50 cents per share, a year earlier.

In a letter to shareholders, CEO Arkady Volozh said the company expects fiscal 2026 revenue to be at the low end of the company’s $3 billion to $3.4 billion range. FactSet forecast revenue of $3.35 billion for the full year.

Nebius also shared its early outlook for 2027, expecting revenue between $12 billion and $13 billion, “reflecting a conservative approach to the pace of our development.” FactSet forecast revenue of $12.09 billion for 2027.

The company forecasts capital expenditures of $27 billion for fiscal 2026, which is higher than its previous capital expenditure forecast of $20 billion to $25 billion and FactSet expectations of $23.85 billion.

Nebius’ expected investments for fiscal 2027 of $40 billion to $45 billion are well above FactSet’s expectations of $28.77 billion.

Nebius’ results come after fellow neoclouds CoreWeave and IREN reported better-than-expected financial results in their earnings announcements over the past week. That boosted shares of the companies, which had suffered heavy selling in recent weeks due to concerns about the sustainability of the development of artificial intelligence.

Neocloud companies saw a strong rally on Wednesday, with Coreweave up nearly 25%, Nebius up 15%, Applied Digital up more than 7% and IREN up almost 6%.

Each of the stocks fell premarket Thursday after the Nebius Q3 report.

Last week, by CoreWeave bond yields have exceeded the 16% mark. In its earnings report released Tuesday, CoreWeave told analysts it plans to keep debt financing at the parent company level below $5 billion through 2027.

The political environment has created more volatility as Nebius races with rivals to open new data centers. Last week, American voters backed dozens of ballot initiatives aimed at restricting the development of such facilities, while Democrats won landslide victories in both houses of Congress.

Then there is the Nvidia issue. Following scathing revelations about CEO Jensen Huang’s affairs, including one with an alleged Chinese spy, the Wall Street Journal reported Wednesday evening that Nvidia’s board was considering ousting the company’s co-founder.

Nvidia, which has grown the neocloud market by investing in companies and supporting some of their projects, held about $329 million in Nebius stock at the end of June, according to a filing.

During the quarter, Nebius said it raised $5.75 billion in debt financing.

Executives will discuss the results with analysts and issue guidance on a conference call starting at 8 a.m. ET.

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