Key takeaways Nebius revenue surges 571% to nearly $981 million Delayed data center capacity weakens 2026 revenue outlook Capital spending forecast rises to $27 billion Nebius Group (NASDAQ:
Nebius Group (NASDAQ: NBIS) shares dropped nearly 12% in premarket trading on November 12 despite the artificial intelligence cloud provider reporting a 571% increase in third-quarter revenue, as delayed computing capacity forced management to lower its 2026 revenue expectations.
According to the company's official earnings release, revenue reached $980.8 million, up from $146.1 million a year earlier and above Wall Street expectations of approximately $908 million.
Nebius Revenue Jumps 571% as AI Cloud Demand AcceleratesNebius reported AI cloud revenue of $973.8 million, representing approximately 99% of total quarterly sales and a 643% annual increase.
Its annualized revenue run rate reached $6.4 billion at September's end, more than doubling from $3 billion in June.
However, approximately $325 million in quarterly revenue came from nonrecurring arrangements involving deployment of Nebius technology on third-party infrastructure.
This distinction matters because the contribution boosted reported growth without necessarily representing recurring cloud consumption.
The latest results follow an earlier Nebius and CoreWeave comparison, which highlighted the growing importance of financing costs and infrastructure utilization for AI cloud providers.
Nebius also reported $38.7 billion in remaining performance obligations, reflecting substantial contracted future business.
Why Is Nebius Stock Falling After Strong Earnings?The company's shareholder letter explains that some third-party computing capacity expected to become operational in 2026 has been delayed until the first half of 2027.
Consequently, Nebius now expects annual revenue near the bottom of its previous $3 billion–$3.4 billion forecast.
Management also pushed back its target of exceeding $7 billion in annualized revenue run rate from December to February.
Meanwhile, its 2026 capital expenditure forecast increased from $20 billion–$25 billion to approximately $27 billion.
The larger spending commitment reinforces concerns raised when Nebius returned to debt markets to finance its rapidly expanding AI infrastructure.
Despite the revised near-term guidance, management expects 2027 revenue of $12 billion–$13 billion, with capital expenditures reaching $40 billion–$45 billion.
Can Nvidia-Backed Nebius Finance Its Expansion?Nebius expects customer prepayments and asset-backed financing to cover approximately 75%–85% of its 2027 capital spending.
That financing strategy follows Nvidia's $2 billion investment in the company earlier this year.
Nevertheless, heavy capital requirements remain a central concern across AI infrastructure businesses.
Rival CoreWeave recently reported 168% quarterly revenue growth, although its borrowing costs and debt obligations continued increasing.
The wider AI infrastructure financing debate has intensified as investors question whether long-term contracts can translate into sustainable earnings quickly enough.
