Nebius closed a $3 billion deal with Meta and reported 355% revenue growth

AI company Nebius Group, which is led by Yandex co-founder Arkady Volozh, has signed a contract worth about $3 billion with Meta to provide artificial intelligence infrastructure for five years, the company said after releasing its third-quarter report.

According to the statement, the agreement with Meta reflects the skyrocketing demand for the high-performance computing power needed to build and run AI models.

This is Nebius' second major contract with U.S. tech giants: in September, the company signed a $17.4 billion agreement with Microsoft.

According to Nebius, the required capacity for the project with Meta will be deployed within three months. At the same time, demand was so high that the contract volume had to be limited by the company's current resources.

Nebius' revenue for the third quarter ended September rose 355% to $146.1 million, according to data compiled by Bloomberg, with analysts' average forecast of $157 million.

Nebius expects its annualized revenue rate (ARR) to be between $7 billion and $9 billion by the end of 2026, compared to about $551 million at the end of September 2025.

"The only real constraint on our revenue growth in 2025 remains the amount of capacity we can bring online. In recent months, we have been working hard to circumvent this obstacle and will continue to be active in 2026," founder and CEO Arkady Volozh specified in a letter to shareholders.

Nebius' capital expenditures rose to $955.5 million in the third quarter, up from $172.1 million a year earlier, as the company aggressively invested in graphics processing units (GPUs), land assets and power capacity.

The statement also said the company plans to launch an at-the-market (ATM, at-the-market) equity offering program of up to 25 million Class A shares. It intends to file a prospectus supplement to this effect on November 12, 2025.

Nebius will regularly evaluate the program against its capital needs, the statement said. This tool will allow the company to flexibly and promptly attract financing by issuing shares, it adds. At the same time, Nebius is going to minimize the dilution of shareholder stakes by preparing for new projects and further growth, the statement stresses.

Nebius shares were up 3.6% on the premarket on Nov. 11 following the release of the statements, although they ended the previous day down 1.2%.

Ahead of the results release, analysts expected Nebius management to present new financial guidance, including an ARR forecast. The company previously said it planned to reach $1 billion in annual subscription revenue by December, but as The Motley Fool noted , that target is now outdated. In September, Nebius signed a five-year, $17.4 billion contract with Microsoft to expand its cloud capacity, which clearly takes the company beyond its previous forecast, The Motley Fool added.

The publication also assumed that investors would focus on the potential for attracting new hyperscaler customers after the report. Until the announcement of the agreement with Meta, a significant portion of Nebius' revenue came from a single partner, Microsoft.

Overall, the market believes in the continued growth of the business and the company's strong outlook. According to MarketWatch, almost all analysts tracking Nebius recommend buying the stock and only one advises holding it in a portfolio.

This article was AI-translated and verified by a human editor