Nebius shares rise 34% as cloud demand accelerates

Nebius Group shares closed 34% higher after second-quarter results beat expectations across key measures. Revenue surged 454% year-over-year to $582.3 million, about $10 million above the LSEG consensus estimate. Growth was driven by large customers, including four data center deals with an average value of more than $1 billion, signed with Cohere, Reflection AI, an unnamed neocloud operator and an investment trading firm.

The Netherlands-based company runs a cloud platform built for AI workloads and also operates Avride, which offers autonomous driving software, and TripleTen, which provides programming courses. Nebius previously signed cloud deals with Meta Platforms and Microsoft that are expected to be worth up to $46.4 billion. Its expansion plans include a Missouri data center campus with up to 1.2 gigawatts of computing capacity and a 310-megawatt site in Finland.

Capital expenditures rose to $5.7 billion in the second quarter, above analysts’ forecast of $4.7 billion, but Nebius said those investments have a payback period of one year and 10 months and are supported by customer prepayments covering more than half its expenses. The company lost $33.2 million in the three months ended June 30, a 64% year-over-year decrease, and posted an adjusted loss of 12 cents per share versus the expected 67 cents per share. Nebius also raised its 2026 contracted power target to 5 gigawatts and plans to add more than 1 gigawatt of computing capacity annually from 2027 onward.