Nebius posted third-quarter revenue of $981 million, topping expectations as clients committed to longer contracts at elevated rates. These upfront payments covered more than 100 percent of deal-related capital expenditures, easing the cost of aggressive infrastructure expansion. Looking further ahead, the company expects to reach breakeven on a pre-tax basis by the end of 2027 while achieving between $12 billion and $13 billion in annual sales. However, its 2026 sales guidance of $3 billion to $3.4 billion trailed the Wall Street midpoint projection of $3.37 billion.
Key points
Strong cloud computing infrastructure demand is prompting customers to sign longer agreem…: Strong cloud computing infrastructure demand is prompting customers to sign longer agreements at higher rates with Nebius.
Customer prepayments covered over 100 percent of deal-linked capital expenditures for net…: Customer prepayments covered over 100 percent of deal-linked capital expenditures for networking hardware and data center construction during the quarter.
The financial update reflects intense sector momentum, paralleling recent revenue increas…: The financial update reflects intense sector momentum, paralleling recent revenue increases and profitability targets announced by rival firm CoreWeave.
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Nov 12 : AI cloud company Nebius on Thursday topped Wall Street estimates for third-quarter revenue and projected $12 billion to $13 billion in sales for 2027, powered by booming demand for its cloud computing infrastructure.
The Amsterdam-based company reported revenue of $981 million for the quarter ended September 30, compared with analysts' average estimate of $907.5 million, according to data compiled by LSEG.
However, its 2026 revenue forecast range of $3 billion to $3.4 billion was slightly lower than market estimates of $3.37 billion at the midpoint.
The company expects to break even on a pre-tax basis by the end of 2027.
Nebius' results follow a strong showing from neocloud rival CoreWeave, which raised its annual revenue forecast on Tuesday and said it was targeting profitability on an adjusted basis in the first half of 2028.
Nebius said its customers committed to longer deals at higher prices in the third quarter and paid more money up front.
Those prepayments covered more than 100 per cent of the capital spending associated with those contracts in the third quarter, including data…
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