The stock price surged over 18% as a high short interest — exceeding 20.19% of the stock’s float — appeared to intensify buying activity, possibly fueling this rally.
AI cloud revenue drives explosive growth
The company based in Amsterdam revealed an adjusted loss per share of 33 cents for the quarter ending March 31, which is better than the anticipated 77 cent loss. Revenue skyrocketed by 684%, reaching $399 million, up from $50.9 million during the same quarter last year.
Nebius reported its AI cloud unit generated quarterly revenue of $389.7 million, reflecting an 841% year-over-year increase, which makes up roughly 98% of the total revenue for the group. The annual run-rate revenue hit $1.92 billion by the end of March, marking a 674% growth compared to last year.
Profitability improves due to rapid increase in AI demand
The company indicated an adjusted EBITDA of $129.5 million, a significant turnaround from a loss of $53.7 million in the same quarter the previous year. Net income from continuing operations reached $621.2 million, aided by a non-cash gain of $780.6 million linked to a revaluation of ClickHouse stock.
According to founder and CEO Arkady Volosh, the demand for AI infrastructure is outpacing the industry’s capacity as more companies adapt AI applications for production.
Increase in data center footprint and power capacity
Nebius has announced a new AI factory site in Pennsylvania, equipped with up to 1.2 GW of secured power. The company’s contracted capacity has now surpassed 3.5GW, exceeding its previous target of 3GW set at the end of the prior year. The management has updated guidance, aiming to extend contracted power beyond 4GW by 2026.
Additionally, Nebius anticipates the connected power will rise from 800 megawatts to 1 gigawatt by year-end, with significant growth expected in installed capacity during the third quarter. New contracts beyond the already established 4GW target are projected to spur growth from 2027 onward.
Earnings forecast for 2026
Nebius reaffirmed its revenue expectations for 2026, projecting figures between $3 billion and $3.4 billion, with an annual run-rate revenue forecasted between $7 billion and $9 billion.
Nevius Group stock increased 18.64% to $212.50 in pre-market trading on Wednesday, reaching a 52-week high, based on data from Benzinga Pro.
