Nebius Says AI Demand Is So Hot It Could Sell Out 2027 Today

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NVIDIA-backed Nebius Group N.V. (NBIS) is having a moment. Shares jumped more than 15% in premarket trading Wednesday after the AI infrastructure company reported second-quarter results that blew past expectations. The headline numbers are impressive, but the real story is what they say about the insatiable demand for AI computing power.

Q2 Earnings Snapshot

Nebius reported an adjusted loss of 12 cents per share, beating 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.

The 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. That's not just hype. 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.

Here's the kicker: 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.

But the most striking comment? 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. Demand continues to grow "exponentially," the company said.

Capacity Buildout Picks Up

To meet that demand, Nebius is scaling up fast. It 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.

Nebius 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.

The company 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.

Price Action

Nebius Group shares were up 15.69% at $223.55 during premarket trading on Wednesday.

Stock Market News

Nebius Says AI Demand Is So Hot It Could Sell Out 2027 Today

Get Nebius Group N.V. - Class A Alerts

Q2 Earnings Snapshot

AI Deals Accelerate

Capacity Buildout Picks Up

Cash And Investment

Price Action

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