Nebius shares fell 10% on Thursday after one of the largest publicly traded neocloud providers issued disappointing guidance.
Nebius revenue rose 571% in the quarter, from $980.8 million to $907.5 million. The company reported a net loss of $37.5 million, or 13 cents per share, compared with $119.6 million, or 50 cents per share, a year earlier.
Nebius shared an initial 2027 outlook, expecting revenue of $12 billion to $13 billion, “reflecting a conservative approach to the pace of our build-out.”
The company expects FY2026 capital expenditures of $27 billion, higher than its previous capex guidance of $20 billion to $25 billion.
During the quarter, Nebius said it raised $5.75 billion in debt financing.
In a letter to shareholders, CEO Arkady Volozh stated that the company expects fiscal 2026 revenue to come in at the low end of its $3 billion to $3.4 billion range.
Volozh wrote: “Our focus remains on building a healthy, profitable business for the long term. We will continue to invest across the business – in our capacity and infrastructure build-out, in our platform and products, and in the team that takes this to market. What this gives us is the ability to command premium prices and terms, combined with lower costs of our infrastructure as a result of designing and building it ourselves, which in turn results in higher margins.
This approach is paying off, and we are able to finance it in a ver y prudent way, through customer prepayments and a healthy balance sheet.
Our confidence in the fundamentals of what we are building has not changed, and the opportunity ahead of us is as large as it has ever been. We will keep going.”
Moving ahead, the political backdrop has heightened volatility as Nebius races its rivals to open new data centers. Last week, U.S. voters supported dozens of ballot initiatives to restrict the development of these facilities, while Democrats won sweeping victories in both chambers of Congress.
By CEO NA Editorial Staff
