Nebius shares plummeted 9% following the earnings report, despite revenue exceeding expectations

Shares of Nebius, a cloud-based AI infrastructure provider founded by Yandex co-founder Arkady Volozh, fell 9% in U.S. premarket trading following the release of its quarterly earnings report.

Investors sold shares despite Nebius reporting a 571% year-over-year increase in third-quarter revenue to $980.8 million. The result exceeded expectations: analysts had forecast $907 million, according to LSEG data cited by Reuters.

Nebius reported that, against the backdrop of growing demand for cloud infrastructure, it expects to generate revenue in the range of $12–13 billion in 2027. “Demand remains exceptionally strong, and we have the right mechanisms in place to capitalize on it,” Volozh stated in a letter to investors.

However, Nebius set its revenue forecast for 2026 in the range of $3–3.4 billion, which was slightly below market expectations: the consensus estimate for the midpoint of that range was $3.37 billion. By the end of 2027, the company expects to break even on pre-tax profit.

In the third quarter, customers signed longer-term contracts at higher prices and made larger upfront payments, Nebius said. These advance payments covered more than 100% of the capital expenditures under the relevant agreements in the third quarter, including costs for building data centers and network infrastructure.

On the eve of the event, Nebius shares rose by more than 15% following a strong earnings report from its main competitor, the neo-cloud provider CoreWeave.

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