Nebius posted revenue growth of 55% sequentially and nearly 550% year-over-year, falling short of consensus by approximately 280 basis points. Adjusted EBITDA reached $15 million, while net losses widened due to elevated capacity expansion and product development spending.

The company’s shift to AI cloud services drove growth, underpinned by new contracts with major hyperscalers including Microsoft and Meta Platforms. These agreements have propelled recurring revenue and strengthened Nebius’ strategic position in the cloud infrastructure market.

All existing capacity is sold out as Nebius prepares to more than double its data center footprint, with new facilities slated in the United States, Europe and a flagship site in France. Expansion efforts have driven up capital expenditure and debt levels, though current cash reserves are sufficient to fund near-term build-outs.

Analysts have raised price targets and issued optimistic ratings, projecting over 60% upside based on growth forecasts. However, 15% short interest and potential execution or financing delays pose near-term headwinds, with resistance expected near current highs around $135.