NVIDIA-Backed Nebius Says AI Capacity Demand Is So Hot It Could Sell Out 2027 Today

NVIDIA-backed Nebius Group N.V. (NASDAQ:NBIS) stock jumped in Wednesday’s premarket trading after the AI infrastructure company reported mixed second-quarter results, with revenue topping Wall Street expectations despite a wider-than-expected adjusted loss per share.

Q2 Earnings Snapshot

Nebius reported an adjusted loss of 68 cents per share, missing the consensus estimate for a loss of 62 cents per share.

Revenue surged 454% year over year to $582.3 million, beating the Street estimate of $572.75 million. Group revenue also rose 46% sequentially, driven by capacity expansion, higher pricing and improved utilization.

Adjusted EBITDA reached $236.2 million, compared with an adjusted EBITDA loss of $21 million a year earlier. The company posted an adjusted net loss of $33.2 million, narrowing from $91.5 million a year ago.

Nebius AI cloud generated $574.9 million in revenue, up 514% year over year and accounting for about 98% of group revenue. Annualized run-rate revenue reached $3 billion, up 56% from $1.9 billion at the end of March.

The AI cloud business generated $285.7 million in adjusted EBITDA, with its margin reaching 49.7%. Group adjusted EBITDA improved by $106.7 million sequentially.

AI Deals Accelerate

Founder and CEO Arkady Volozh called the second quarter the company’s strongest commercial quarter yet.

Nebius closed four major AI cloud deals with an average total contract value of more than $1 billion each. Total contract value for deals signed during the quarter grew nearly fourfold sequentially, while new-customer contract value increased more than ninefold.

The company said roughly 70% of deals included customer prepayments. Those terms reduced the expected payback period for associated investments to one year and 10 months from a historical range of two to three years.

Nebius also said it secured its highest price to date for NVIDIA Blackwell chips through its first capacity auction pilot.

Nebius said AI capacity demand is so strong that it could sell its entire 2027 capacity on current terms today, but is deliberately holding some back for immediate customer needs.

The company said demand continues to grow “exponentially” after its strongest commercial quarter yet, when it closed four AI cloud deals averaging more than $1 billion each.

Capacity Buildout Picks Up

Nebius raised its year-end 2026 contracted power forecast to 5 gigawatts from more than 4 GW previously. The company plans to deploy more than 1 GW of capacity annually starting in 2027.

The company has already received its first NVIDIA Vera Rubin NVL72 systems and is testing the architecture across its computing, networking and orchestration stack. It said it is already engaging with customers about Vera Rubin access.

Nebius reaffirmed its full-year 2026 guidance across all metrics and expects more than $9 billion in customer prepayments this year.

Cash And Investment

Nebius ended June with $8.04 billion in cash and cash equivalents.

Operating cash flow from continuing operations reached $2.25 billion in the second quarter. Capital expenditures were about $5.7 billion, largely reflecting purchases of GPUs and related hardware and data center expansion.

In July, Nebius secured $775 million in asset-backed financing at SOFR plus 2.50%. The company said it has more than $40 billion in customer commitments.

NBIS Price Action: Nebius Group shares were up 15.69% at $223.55 during premarket trading on Wednesday, according to Benzinga Pro data.

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