Nebius Group (NYSE:NBIS) reported first-quarter 2026 results on Wednesday that highlighted explosive growth in its AI cloud business, surging customer demand and an aggressive expansion of its global data center footprint, as the company raised its contracted power guidance to more than 4 gigawatts by year-end.
The stock surged over 18%, as high short interest—exceeding 20.19% of the float—likely acted as a catalyst, amplifying buying pressure and accelerating the rally.
AI Cloud Revenue Drives Explosive Growth
The Amsterdam-based company reported adjusted loss per share of 33 cents for the quarter ended March 31. The figure may not be comparable to analyst estimates for a 77-cent loss. Revenue jumped 684% year over year to $399 million from $50.9 million a year earlier.
Nebius said its AI cloud business generated $389.7 million in quarterly revenue, up 841% from the prior year and representing about 98% of total group revenue. Annualized run-rate revenue climbed to $1.92 billion at the end of March, up 674% year over year.
Profitability Improves On AI Demand Surge
The company posted adjusted EBITDA of $129.5 million, compared with a loss of $53.7 million a year earlier, while net income from continuing operations totaled $621.2 million, helped in part by a $780.6 million non-cash gain tied to the revaluation of its equity stake in ClickHouse.
Founder and CEO Arkady Volozh said demand for AI infrastructure continues to outpace industry capacity as enterprises increasingly move AI applications into production environments.
Meta Agreement And Pipeline Expansion
Nebius said its pipeline generation increased about 3.5 times quarter over quarter in the first quarter. The company also disclosed a second long-term agreement with Meta Platforms Inc. (NASDAQ:META) valued at up to $27 billion over five years.
Data Center Footprint And Power Capacity Growth
As part of its infrastructure buildout, Nebius announced a new Pennsylvania AI factory site with up to 1.2 GW of secured power. The company said contracted capacity now exceeds 3.5 GW, surpassing its prior 3 GW year-end target, prompting management to raise guidance to more than 4 GW of contracted power by the end of 2026.
Nebius said it still expects 800 megawatts to 1 gigawatt of connected power by year-end and anticipates a significant increase in deployed capacity during the third quarter. Additional contracts signed beyond the new 4 GW target are expected to contribute to growth in 2027 and beyond.
Cash Position And Capital Spending
The company ended the quarter with $9.3 billion in cash and cash equivalents after raising $6.3 billion during the quarter, including a $2 billion investment from NVIDIA Corp. (NASDAQ:NVDA) and $4.3 billion from convertible securities. Capital expenditures totaled about $2.5 billion during the quarter, primarily tied to GPUs and AI infrastructure expansion.
2026 Revenue Outlook
Nebius reiterated its expectation to generate between $3 billion and $3.4 billion in 2026 revenue and forecast annualized run-rate revenue of $7 billion to $9 billion.
NBIS Price Action: Nebius Group shares were up 18.64% at $212.50 during premarket trading on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Photo by Piotr Swat via Shutterstock
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