Nebius Group Q3 2026: Big Beat, $12 Billion to $13 Billion 2027 Outlook

Nebius Group posted Q3 2026 revenue of $980.8 million, running 8.3% ahead of consensus and up 571% year over year. The loss per share of $0.13 came in well ahead of the $1.24 loss analysts had expected, with GAAP results weighed down by an induced conversion expense on convertible notes and a foreign exchange loss.

The quarter's headline driver was Nebius AI Cloud, which accounted for roughly 99% of group revenue. About $325 million of the total came from the initial phase of a new asset-light partnership arrangement that management characterized as non-recurring, a detail investors will want to hold alongside the topline beat when sizing up the underlying run rate.

Management introduced a 2027 revenue outlook of $12 billion to $13 billion, roughly four times the 2026 expected range, with pre-tax breakeven targeted in the fourth quarter of that year. CEO Arkady Volozh noted that prepayments on Q3 agreements covered more than 100% of the associated capex.

The 2026 picture is more constrained. Full-year revenue now tracks to the low end of the $3.0 billion to $3.4 billion guidance range after third-party colocation delivery slippages, including New Jersey tranches pushed to the second quarter of 2027. The adjusted EBITDA margin target of about 40% was left unchanged.

Capital expenditures in the quarter reached $7.3 billion, up 664% year over year, against negative operating cash flow, reflecting the scale of infrastructure buildout underway. The company raised financing through asset-backed, convertible note, and secured facilities, giving it runway to pursue owned-site capacity additions in Missouri, Finland, and Alabama slated to come online in 2027.