Nebius has recently signed its second significant AI contract since September.
After revealing third-quarter results on November 11, the data center infrastructure company saw its stock drop 7% amid unusual trading volume. Sales surged by 355%, yet the company experienced a larger loss than the previous year, primarily due to increased expenses for enhancing its data centers and acquiring advanced graphics processing units (GPUs) to support its AI-driven platform.
Additionally, Nebius announced a new contract worth $3 billion aimed at developing AI infrastructure over the next five years. Meta Platforms is also making major investments to support its AI infrastructure, focusing on the Llama large language model, AI-driven advertising solutions, and customer-facing tools like Meta AI.
Nebius Revenue Overview
The company reported third-quarter revenue of $146.1 million, a year-over-year increase of 355%. Over the first nine months of 2025, revenue rose 437%, climbing from $56.3 million in 2024 to $302 million.
However, Nebius reported a net loss of $119.6 million, which is a significant increase of 174% compared to last year’s loss of $43.6 million. Its adjusted net loss reached $104 million, up from $39.7 million during the same quarter last year.
In the last quarter, the company spent $955.5 million on capital expenditures, a considerable rise from $172.1 million the previous year.
Management indicated that all of the available production capacity was sold in the third quarter. Currently, they have 220 megawatts of power in their data centers and aim to expand this to between 800 megawatts and 1 gigawatt by the end of 2026.
CEO Arkady Volosh stated in a letter to investors that “2025 has been a year of building as we put in place the infrastructure and framework for rapid future growth. We believe we have laid the groundwork for an exciting 2026, which should firmly position us at the top of the AI cloud business worldwide. And at the same time, 2026 is just the beginning.”
By Tuesday afternoon, trading volume exceeded 38.6 million shares, more than double the average daily volume of 17.5 million shares.
Future Prospects for Nebius Group
Nebius anticipates that its annual run-rate revenue could reach between $7 billion and $9 billion by the end of 2026, signaling a substantial increase.
The partnership with Meta is the second significant contract Nebius has announced this year; they also previously disclosed a partnership with Microsoft, set to commence later this year, focusing on a dedicated AI infrastructure from a new data center in Vineland, New Jersey. This deal is valued at between $17.4 billion and $19.4 billion.
Both contracts are expected to influence Nebius’ earnings in 2026, aiding the company’s plans to enhance data centers, expand capacity, and boost profitability.
With projections indicating the artificial intelligence market will balloon from $279.22 billion in 2024 to about $3.5 trillion by 2033, Nebius is positioning itself as a key player in the data center space. While the stock has dropped today, it’s worth noting that it is still up 263% this year.
