- Nebius Q2 revenue rockets to $105.1 million (625 % YoY), while adjusted EBITDA narrows and core business hits positive.
- The firm raises its annualised revenue run rate target and plans to secure over 1 GW of power by 2026 to scale AI compute.
What happened: Nebius reports massive Q2 surge and raised guidance
Nebius Group N.V. recorded $105.1 million in revenue for Q2, a 625 % year-on-year increase, as demand for its AI cloud platform surged according to its official press release on Business Wire. The company also narrowed its adjusted EBITDA loss and noted that its core business achieved positive adjusted EBITDA ahead of schedule. In response to the strong performance, management raised its annualized run-rate revenue (ARR) guidance to $900 million–$1.1 billion, up from a prior range of $750 million–$1 billion.
Investor sentiment turned bullish: Nebius stock surged over 18 % following the earnings, while analysts from D.A. Davidson boosted its price target to $75 and Goldman Sachs initiated coverage with a buy rating.
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Why it’s important
The performance underscores Nebius’s emergence as a significant force in the rapidly expanding AI infrastructure market, where it is increasingly challenging established hyperscale cloud providers. The company differentiates itself by delivering vertical-optimised compute, storage, and managed services that are built on proprietary hardware and in-house-developed software, enabling it to tailor performance for specific workloads such as generative AI, scientific modelling, and data-intensive analytics. This integrated approach not only improves efficiency but also allows Nebius to exert greater control over cost structures and scalability.
Additionally, Nebius’s plan to secure more than 1 GW of power by end-2026 to support GPU-intensive workloads exemplifies the high capital and energy demands of AI cloud infrastructure. If executed well, this could position Nebius as a trusted “neocloud” alternative in the AI compute market. However, continued net losses and the need for scale mean the company remains in a high-risk, high-stakes scaling phase.
