Nebius reported third-quarter revenue of $980.8 million, significantly surpassing the analysts' estimate of $907.5 million, and a substantial year-over-year revenue increase of 571%. However, the company also announced a net loss of $37.5 million, or 13 cents per share, which was not directly comparable to the expected loss of 69 cents per share.
CEO Arkady Volozh indicated that the company anticipates fiscal year 2026 revenue at the lower end of its previously stated range of $3 billion to $3.4 billion, below the FactSet expectation of $3.35 billion. Additionally, Nebius raised its capital expenditure forecast for FY2026 to $27 billion, exceeding both its prior guidance and the FactSet estimate of $23.85 billion.
For FY2027, the company expects capital expenditures of $40 billion to $45 billion, significantly higher than the FactSet expectation of $28.77 billion. This disappointing guidance comes amid a backdrop of volatility in the neocloud sector, where competitors like CoreWeave and IREN recently reported strong financials, leading to a temporary rally in their stock prices.
The political landscape is also affecting the industry, with recent voter initiatives aimed at restricting data center development. Furthermore, concerns surrounding Nvidia's leadership and its financial ties to Nebius add another layer of uncertainty. The market's reaction to Nebius' results reflects investor caution amid these challenges