Recently, Nebius has finalized its second significant AI partnership since September.
Nebius Group (NBIS 7.45%) saw a decline of 7% today, experiencing exceptionally high trading volume after the data center infrastructure provider released its third-quarter earnings on November 11. The company reported an impressive revenue growth of 355%, yet it also faced wider losses year-over-year due to increased expenses associated with expanding its data centers and equipping them with powerful graphics processing units (GPUs) designed for training and managing AI (artificial intelligence) platforms.
In addition to its financial performance, Nebius announced a groundbreaking new agreement to supply $3 billion worth of AI infrastructure over the next five years to Meta Platforms (META 0.74%). Meta has been heavily investing in enhancing its own AI infrastructure, which includes its Llama large language model, AI-driven advertising solutions, and various customer-facing AI innovations such as Meta AI.
Today’s Change
(-7.45%) $-8.19
Current Price
$101.76
Essential Data Insights
Market Cap
$28B
Day’s Range
$99.83 – $114.56
52wk Range
$17.39 – $141.10
Volume
1.7M
Avg Vol
18M
Gross Margin
-2007.45%
Dividend Yield
N/A
A Detailed Look at Nebius Earnings
Nebius reported a substantial revenue of $146.1 million for the third quarter, reflecting a staggering 355% increase compared to the previous year. Over the first nine months of the year, Nebius’s revenue surged by 437%, climbing from $56.3 million in 2024 to $302 million during the initial three quarters of 2025. Such growth highlights the company’s aggressive expansion strategy in the lucrative AI landscape.
Despite the impressive revenue growth, the company faced a net loss of $119.6 million, representing a significant 174% increase from last year’s quarterly loss of $43.6 million. The adjusted net loss also widened to $100.4 million, up from a loss of $39.7 million in the same quarter the previous year, showcasing the financial challenges Nebius faces amidst its rapid expansion.
Nebius disclosed that it invested $955.5 million in capital expenditures during the quarter, a notable increase from $172.1 million a year prior. This surge in spending underlines the company’s commitment to enhancing its infrastructure and capabilities within the data center industry.
Management noted that they reached full capacity in the third quarter, with 220 megawatts of connected power dedicated to data centers. They are on track to expand this capacity to between 800 megawatts and 1 gigawatt by the end of 2026, which is a critical step towards meeting the growing demands of the AI sector.
“2025 has been a year of foundational development as we establish the infrastructure and frameworks necessary for rapid future growth,” stated CEO Arkady Volozh in a letter to investors. “This year, we believe we have successfully laid the groundwork for an exceptional 2026—a year that should firmly establish us among the leading AI cloud providers globally, and we view 2026 as just the beginning of our journey.”
Trading volume on that day exceeded 38.6 million shares by Tuesday afternoon, significantly surpassing the stock’s average daily trading volume of 17.5 million shares. This spike indicates heightened interest and activity among investors as they react to the company’s announcements and performance.
Image source: Getty Images.
What Is the Future Outlook for Nebius Group?
Nebius anticipates achieving an annualized run rate revenue between $7 billion and $9 billion by the end of 2026, marking a significant leap in its financial trajectory. This optimistic forecast is underpinned by the company’s strategic investments and partnerships within the AI ecosystem.
The recent deal with Meta Platforms is the second major contract announced by Nebius this year; it follows a previously disclosed agreement with Microsoft to deliver dedicated AI infrastructure from its new data center in Vineland, New Jersey, set to commence later this year. This contract is valued between $17.4 billion and $19.4 billion, further solidifying Nebius’s position in the competitive landscape of AI services.
Both agreements are anticipated to positively influence Nebius’s bottom line in 2026, significantly aiding the company in expanding its data centers, increasing capacity, and transitioning towards profitability. The demand for AI services is expected to grow exponentially, positioning Nebius as a crucial player in the data center industry.
With the artificial intelligence market projected to expand from $279.22 billion in 2024 to a staggering $3.5 trillion by 2033, Nebius is strategically positioning itself as an essential data center provider. Although the stock experienced a decline today, it has shown remarkable gains of 263% this year, reflecting strong investor confidence in the company’s long-term potential.
