Nebius Group Reports Q4 Earnings with Significant Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy NBIS?
Source: seekingalpha
- Financial Performance: Nebius Group reported a Q4 net loss of $173 million, despite a remarkable 546.9% year-over-year revenue increase to $227.7 million, which fell short of expectations by $15.09 million, indicating ongoing challenges in profitability.
- Market Reaction: Despite the earnings miss, Nebius Group's shares rose by 1%, reflecting investor confidence in the company's future growth potential, particularly in light of its acquisition plans.
- Acquisition Strategy: Nebius has agreed to acquire Israeli AI startup Tavily to enhance agentic search capabilities in its cloud services, a move that not only strengthens product competitiveness but could also drive future revenue growth.
- Strategic Outlook: With significant revenue growth and the integration of new technologies, Nebius Group is at a pivotal transformation stage, potentially improving its financial health through further technological investments and market expansion.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 89.730
Low
130.00
Averages
164.20
High
211.00
Current: 89.730
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nebius' Q4 Earnings Shortfall Does Not Alter Its Growth Story
Earnings Report Overview: Nebius shares fell after the release of its Q4 2025 earnings, which missed both top and bottom line forecasts, despite reporting robust revenue growth driven by a shift to AI cloud services.
Business Growth Context: The company experienced significant revenue growth of 55% sequentially and nearly 550% year-over-year, indicating strong business expansion despite the earnings shortfall.
Future Outlook and Expansion Plans: Analysts remain cautiously optimistic about Nebius's future, highlighting aggressive expansion plans, including a new data center in France, which is expected to bolster long-term growth.
Market Sentiment and Investment Recommendations: Market reactions were mixed post-earnings, with some analysts raising price targets and suggesting that Nebius stock may continue to face challenges until new catalysts emerge.
See More
NEBIUS GROUP DROPS 8.7% FOLLOWING Q4 CAPITAL EXPENDITURE SPIKE AND REVENUE SHORTFALL
Financial Performance: Nebius Group reported an 8.7% decline in its financial performance following a surge in capital expenditures during the fourth quarter.
Revenue Estimates: The company's revenue fell short of market estimates, indicating potential challenges in meeting financial expectations.
See More
Nebius Group Exceeds Revenue Expectations
- Revenue Growth Exceeds Expectations: Nebius Group's annual revenue run rate target of $1.1 billion for the end of 2025 was surpassed, achieving $1.25 billion, showcasing the company's strong performance in the AI cloud infrastructure sector and solidifying its market position.
- Optimistic Future Outlook: The company anticipates a sevenfold increase in its revenue run rate for 2026, reflecting confidence in market demand, particularly amid surging needs for AI computing capacity, which may attract more investor interest.
- Data Center Expansion Plans: Nebius plans to achieve over 3 gigawatts of contracted compute capacity by the end of 2026, exceeding prior guidance, indicating robust demand for AI computing capabilities that could drive future revenue growth.
- Positive Market Reaction: Despite Nebius's stock price having tripled last year, it still rose by 8.2% today, demonstrating investor confidence in the company's growth potential, with a market capitalization of approximately $25 billion.
See More
Nebius Expects Sevenfold Revenue Growth by 2026
- Revenue Growth Expectations: Nebius achieved an annual revenue run rate of $1.25 billion by the end of 2025, surpassing the previous guidance of $1.1 billion, indicating strong performance in the AI cloud infrastructure sector, with expectations for a sevenfold increase in 2026 further solidifying its market position.
- Data Center Expansion Plans: The company plans to increase its compute capacity to over 3 gigawatts (GW) by the end of 2026 to meet the surging demand for AI computing, a strategy that will drive future revenue growth and enhance competitive advantages.
- Stock Price Reaction: Nebius's stock price has more than tripled over the past year, and despite a recent pullback, it currently holds a market cap of approximately $25 billion, reflecting positive market expectations for its future growth, with investors needing to monitor demand sustainability into 2027.
- Investment Advice: Despite Nebius's impressive performance, it was not included in Motley Fool's current list of top investment stocks, suggesting that investors should carefully assess market dynamics and the company's outlook before making investment decisions.
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Surge in AI Stock Investments Amid $650 Billion Spending Plans
- Market Investment Trend: Microsoft, Alphabet, Amazon, and Meta are set to invest up to $650 billion in AI in 2023, and while their stocks have dipped slightly, investors should focus on AI infrastructure companies that are expected to benefit significantly from this trend.
- Nvidia Earnings Expectations: Nvidia (NVDA) is anticipated to report quarterly earnings on February 25, with expectations of a substantial revenue increase following last year's record revenue of $57 billion, of which $51.2 billion came from its data center segment, indicating strong market demand.
- TSMC's Market Position: Taiwan Semiconductor Manufacturing (TSM) is the preferred foundry for top chipmakers, producing over 11,800 products in 2024, with 63% of its shipments in Q4 2025 being 3nm or 5nm chips, showcasing its leadership in efficient chip manufacturing.
- Nebius Group Expansion Plans: Nebius Group (NBIS) aims to increase its data center connected power from 220 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, backed by contracts worth up to $19.4 billion with Microsoft and $3 billion with Meta, highlighting its rapid growth potential in AI cloud platform development.
See More
Top Picks for Investing in Chipmakers
- AI Investment Surge: Microsoft, Alphabet, Amazon, and Meta are set to invest up to $650 billion in AI this year, creating significant demand for related infrastructure companies, particularly chipmakers like Nvidia and TSMC, which are expected to benefit from this trend.
- Nvidia Earnings Outlook: Nvidia is projected to report record revenue of $57 billion for Q3 of fiscal 2026, with $51.2 billion coming from its data center segment, indicating strong demand for its Blackwell GPUs and suggesting robust growth potential for the company.
- TSMC's Market Position: As a leading chip manufacturer, TSMC produced over 11,800 products in 2024, with 63% of its shipments in Q4 2025 being 3nm or 5nm chips, highlighting its leadership in efficient chip manufacturing.
- Nebius Expansion Plans: Nebius Group aims to increase its data center connected power from 220 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, backed by contracts worth up to $19.4 billion with Microsoft and $3 billion with Meta, indicating rapid expansion and strong demand in the AI cloud platform market.
See More
Nebius' Q4 Earnings Shortfall Does Not Alter Its Growth Story
Earnings Report Overview: Nebius shares fell after the release of its Q4 2025 earnings, which missed both top and bottom line forecasts, despite reporting robust revenue growth driven by a shift to AI cloud services.
Business Growth Context: The company experienced significant revenue growth of 55% sequentially and nearly 550% year-over-year, indicating strong business expansion despite the earnings shortfall.
Future Outlook and Expansion Plans: Analysts remain cautiously optimistic about Nebius's future, highlighting aggressive expansion plans, including a new data center in France, which is expected to bolster long-term growth.
Market Sentiment and Investment Recommendations: Market reactions were mixed post-earnings, with some analysts raising price targets and suggesting that Nebius stock may continue to face challenges until new catalysts emerge.
See More
NEBIUS GROUP DROPS 8.7% FOLLOWING Q4 CAPITAL EXPENDITURE SPIKE AND REVENUE SHORTFALL
Financial Performance: Nebius Group reported an 8.7% decline in its financial performance following a surge in capital expenditures during the fourth quarter.
Revenue Estimates: The company's revenue fell short of market estimates, indicating potential challenges in meeting financial expectations.
See More
Nebius Group Exceeds Revenue Expectations
- Revenue Growth Exceeds Expectations: Nebius Group's annual revenue run rate target of $1.1 billion for the end of 2025 was surpassed, achieving $1.25 billion, showcasing the company's strong performance in the AI cloud infrastructure sector and solidifying its market position.
- Optimistic Future Outlook: The company anticipates a sevenfold increase in its revenue run rate for 2026, reflecting confidence in market demand, particularly amid surging needs for AI computing capacity, which may attract more investor interest.
- Data Center Expansion Plans: Nebius plans to achieve over 3 gigawatts of contracted compute capacity by the end of 2026, exceeding prior guidance, indicating robust demand for AI computing capabilities that could drive future revenue growth.
- Positive Market Reaction: Despite Nebius's stock price having tripled last year, it still rose by 8.2% today, demonstrating investor confidence in the company's growth potential, with a market capitalization of approximately $25 billion.
See More
Nebius Expects Sevenfold Revenue Growth by 2026
- Revenue Growth Expectations: Nebius achieved an annual revenue run rate of $1.25 billion by the end of 2025, surpassing the previous guidance of $1.1 billion, indicating strong performance in the AI cloud infrastructure sector, with expectations for a sevenfold increase in 2026 further solidifying its market position.
- Data Center Expansion Plans: The company plans to increase its compute capacity to over 3 gigawatts (GW) by the end of 2026 to meet the surging demand for AI computing, a strategy that will drive future revenue growth and enhance competitive advantages.
- Stock Price Reaction: Nebius's stock price has more than tripled over the past year, and despite a recent pullback, it currently holds a market cap of approximately $25 billion, reflecting positive market expectations for its future growth, with investors needing to monitor demand sustainability into 2027.
- Investment Advice: Despite Nebius's impressive performance, it was not included in Motley Fool's current list of top investment stocks, suggesting that investors should carefully assess market dynamics and the company's outlook before making investment decisions.
See More
Surge in AI Stock Investments Amid $650 Billion Spending Plans
- Market Investment Trend: Microsoft, Alphabet, Amazon, and Meta are set to invest up to $650 billion in AI in 2023, and while their stocks have dipped slightly, investors should focus on AI infrastructure companies that are expected to benefit significantly from this trend.
- Nvidia Earnings Expectations: Nvidia (NVDA) is anticipated to report quarterly earnings on February 25, with expectations of a substantial revenue increase following last year's record revenue of $57 billion, of which $51.2 billion came from its data center segment, indicating strong market demand.
- TSMC's Market Position: Taiwan Semiconductor Manufacturing (TSM) is the preferred foundry for top chipmakers, producing over 11,800 products in 2024, with 63% of its shipments in Q4 2025 being 3nm or 5nm chips, showcasing its leadership in efficient chip manufacturing.
- Nebius Group Expansion Plans: Nebius Group (NBIS) aims to increase its data center connected power from 220 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, backed by contracts worth up to $19.4 billion with Microsoft and $3 billion with Meta, highlighting its rapid growth potential in AI cloud platform development.
See More
Top Picks for Investing in Chipmakers
- AI Investment Surge: Microsoft, Alphabet, Amazon, and Meta are set to invest up to $650 billion in AI this year, creating significant demand for related infrastructure companies, particularly chipmakers like Nvidia and TSMC, which are expected to benefit from this trend.
- Nvidia Earnings Outlook: Nvidia is projected to report record revenue of $57 billion for Q3 of fiscal 2026, with $51.2 billion coming from its data center segment, indicating strong demand for its Blackwell GPUs and suggesting robust growth potential for the company.
- TSMC's Market Position: As a leading chip manufacturer, TSMC produced over 11,800 products in 2024, with 63% of its shipments in Q4 2025 being 3nm or 5nm chips, highlighting its leadership in efficient chip manufacturing.
- Nebius Expansion Plans: Nebius Group aims to increase its data center connected power from 220 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, backed by contracts worth up to $19.4 billion with Microsoft and $3 billion with Meta, indicating rapid expansion and strong demand in the AI cloud platform market.
See More
