The operational bottleneck will delay Nebius reaching its milestone of over $7 billion in annual run-rate revenue by approximately two months. In tandem with the postponed capacity, the company significantly raised its capital expenditure outlook to roughly $27 billion this year and up to $45 billion next year. Nebius reported third-quarter revenue of $981 million, which beat Wall Street forecasts, and targets breaking even on a pre-tax basis by the end of next year. Customer prepayments and asset-backed debt will serve as the primary financing mechanisms for the upcoming infrastructure spend.
Key points
Capacity deployment delays have deferred the company's $7 billion annual run-rate target…: Capacity deployment delays have deferred the company's $7 billion annual run-rate target by roughly two months.
Customer prepayments and asset-backed financing are slated to cover 75% to 85% of capital…: Customer prepayments and asset-backed financing are slated to cover 75% to 85% of capital spending in 2027.
Management projects 2027 sales between $12 billion and $13 billion while aiming for pre-t…: Management projects 2027 sales between $12 billion and $13 billion while aiming for pre-tax breakeven next year.
Sources checked by our analysis pipeline: 1
Nov 12 : AI cloud company Nebius said on Thursday its 2026 revenue would come in at the low end of its previous forecast after delays in third-party capacity additions, while a higher spending outlook sent its shares down nearly 12 per cent premarket.
The drop reversed some of Wednesday's 15 per cent surge following strong results from neocloud rival CoreWeave, as investors weighed Nebius' higher capital spending plans and delays in bringing capacity online.
Nebius said some third-party capacity expected to come online this year has been pushed back to the first half of 2027, but added that the contracts behind the capacity were still in place.
Due to the delay, the Amsterdam-based company said it will hit its target of more than $7 billion in annual run-rate revenue about two months later than originally planned.
Still, the company hiked its full-year capital spending forecast to about $27 billion from the prior view of $20 billion to $25 billion. Analysts on average were expecting $22 billion in annual spending, according to data compiled by LSEG.
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