Nebius Group N.V. (NBIS) reported a significant revenue increase of 454% year-over-year for the second quarter of 2026, reaching $582 million. The company also achieved an adjusted EBITDA of $236 million, reflecting strong operational performance.
Key Details
The surge in revenue was driven by a 514% increase in AI-related income, which totaled $575 million. Annual recurring revenue (ARR) climbed 56% sequentially to $3 billion, indicating robust demand for Nebius's services. The company's infrastructure expansion is supported by a contracted power guidance increase to 5GW and a quadrupling of contracted value. The annual contract value is now approximately $40 million per megawatt, according to the company.
Nebius's asset-light model and strategic customer financing have facilitated rapid growth while maintaining low leverage. Customer prepayments are covering 50% to 70% of project capital expenditures, which is expected to support an expansion plan valued between $20 billion and $25 billion in 2026. The company’s capital has surged to $10.34 billion, with debt growth tightly controlled.
Background
Analysts have expressed bullish sentiments regarding Nebius, citing its unique business model and the untapped potential in the European market. One analyst noted, "I rate NBIS a Buy, citing massive untapped European market potential, a unique business model, and strong consensus support for further scaling."
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The strong earnings report is likely to bolster investor confidence in Nebius, impacting its stock performance positively. The significant growth in AI revenue could attract institutional investors looking for exposure to the expanding AI infrastructure sector.
Watch for the upcoming quarterly earnings report, which will provide further insights into Nebius's growth trajectory and market strategies.
Based on reporting by: seekingalpha.com