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Wall Street Splits After Nebius’ Blowout Quarter

Investors now weigh heavy data‑center spending against a backlog that could turn multi‑year deals into steady revenue.

Overview

  • Nebius reported Q1 2026 revenue of $399 million, up 684% from a year ago, with an EPS loss of $0.23 that beat forecasts by 71.6%.
  • The AI Cloud unit jumped 841% to $390 million as adjusted EBITDA turned positive and net income from continuing operations swung to a $621.2 million profit, though adjusted net loss widened to $100.3 million as scaling costs rose.
  • Management raised 2026 capital spending plans to $20–$25 billion and aims to exit the year at a $7–$9 billion annual revenue run rate.
  • The company is building gigawatt‑scale sites, including an AI facility in Independence, Missouri, and says it owns over 75% of its contracted power, which can help control margins but requires large upfront cash outlays.
  • Shares surged after the results then pulled back on competition worries, as Citi lifted its target to a Street‑high $287 with a Buy call and DA Davidson began coverage at Neutral with a $250 target.