Nebius shares sank 10% on Thursday after the neocloud company beat third-quarter revenue estimates but issued disappointing guidance. It expects 2026 revenue at the low end of its range and higher capital spending than it planned before.
Nebius shares sank 10% on Thursday as the company, one of the biggest publicly traded neoclouds, reported third-quarter revenue that beat analysts' estimates. Guidance, however, disappointed.
Revenue beats, outlook trails
Nebius reported revenue of $980.8 million versus $907.5 million expected, based on LSEG consensus. Revenue also jumped 571% in the quarter, according to the company's statement.
The company posted a net loss of $37.5 million, or 13 cents per share, compared with $119.6 million, or 50 cents per share, a year earlier. It was not immediately clear whether that loss per share was comparable to the 69 cents analysts expected.
Spending plans climb
In a letter to shareholders, CEO Arkady Volozh said Nebius expects 2026 revenue at the low end of its $3 billion to 3.4 billion range. FactSet expected full-year revenue of $3.35 billion.
Nebius also expects fiscal 2026 capital expenditures of $27 billion, above its previous capex guidance of $20 billion to $25 billion and the FactSet expectation of $23.85 billion. For 2027, it expects capex of $40 billion to $45 billion, against a FactSet expectation of $28.77 billion.
Its initial 2027 outlook calls for revenue of $12 billion to $13 billion, which the company said reflects a conservative approach to the pace of its build-out.
Peers rebound, Nvidia adds volatility
Nebius reported after fellow neoclouds CoreWeave and IREN posted better-than-expected results over the past week. That boosted their stocks, which had suffered steep selloffs on concern about the sustainability of the artificial intelligence buildout.
Nvidia, which has developed the neocloud market by investing in companies and backstopping some projects, held about $329 million in Nebius shares at the end of June, according to a filing. CNBC notes that the crisis around CEO Jensen Huang is adding volatility.
Source: CNBC
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