Nebius Group (NASDAQ:NBIS) Releases Earnings Results, Misses Expectations By $0.27 EPS

Nebius Group (NASDAQ:NBIS) announced its quarterly earnings results on Thursday. The company reported ($0.69) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.42) by ($0.27), Zacks reports. The firm had revenue of $227.70 million during the quarter, compared to analysts’ expectations of $246.05 million. Nebius Group had a negative return on equity of 12.22% and a net margin of 19.02%.

Here are the key takeaways from Nebius Group’s conference call:

• Nebius reported a very strong 2025, exceeding targets with Q4 revenue of $228M, >$1.2B in ARR at year-end, and positive group adjusted EBITDA in Q4 driven by an 830% YoY core cloud revenue increase.
• Demand and pricing remain robust: capacity was sold out in Q3/Q4 (and into Q1 2026), average new contract duration rose ~50%, and customers are scaling from hundreds to tens of thousands of GPUs.
• Company is accelerating supply, announcing nine new data centers and raising contracted power guidance from ~2 GW to >3 GW for 2026, targeting 800 MW–1 GW of connected capacity online by year-end.
• Nebius plans heavy investment with $16B–$20B CapEx in 2026; while ~60% is already funded, the remainder will rely on new debt, asset-backed financing or equity, creating financing and execution risk.
• Guidance is aggressive but mixed: Nebius reiterates a $7B–$9B ARR target for end-2026 and 2026 revenue of $3B–$3.4B with ~40% adjusted EBITDA margin, while EBIT is expected to remain negative as they invest and extend depreciation to five years.

Nebius Group Trading Up 9.2%

Shares of NASDAQ NBIS opened at $98.01 on Friday. The stock has a market cap of $24.68 billion, a price-to-earnings ratio of -127.29 and a beta of 3.90. Nebius Group has a 1-year low of $18.31 and a 1-year high of $141.10. The stock’s 50-day moving average is $92.41 and its 200 day moving average is $93.10.

Analyst Upgrades and Downgrades

Several research firms have issued reports on NBIS. DA Davidson reiterated a “buy” rating and issued a $150.00 target price on shares of Nebius Group in a research note on Wednesday, November 12th. BWS Financial reaffirmed a “buy” rating and issued a $130.00 price target on shares of Nebius Group in a report on Thursday, November 13th. Morgan Stanley initiated coverage on Nebius Group in a research note on Thursday, January 15th. They set an “equal weight” rating and a $126.00 price objective for the company. Wall Street Zen lowered Nebius Group from a “hold” rating to a “sell” rating in a research note on Saturday, November 15th. Finally, Northland Securities raised their price target on Nebius Group from $206.00 to $211.00 and gave the company an “outperform” rating in a report on Wednesday, November 12th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Nebius Group has an average rating of “Moderate Buy” and a consensus price target of $142.38.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Royal Bank of Canada bought a new stake in shares of Nebius Group in the 1st quarter worth approximately $1,628,000. Millennium Management LLC purchased a new position in Nebius Group in the 1st quarter worth $11,563,000. NewEdge Advisors LLC bought a new stake in Nebius Group in the first quarter worth $40,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in Nebius Group during the first quarter valued at about $9,084,000. Finally, Daiwa Securities Group Inc. bought a new position in shares of Nebius Group during the second quarter valued at about $68,000. 21.90% of the stock is owned by hedge funds and other institutional investors.

Nebius Group News Summary

Here are the key news stories impacting Nebius Group this week:

• Positive Sentiment: Q4 showed extraordinary top-line growth (reported ~+547% YoY; AI cloud revenue much higher), underscoring strong demand from hyperscalers and enterprise AI customers — a core reason bulls are buying the stock. Nebius: In Energy We Trust
• Positive Sentiment: Acquisition and product moves (Tavily deal) boost Nebius’ agentic AI/search capabilities and strengthen its AI software stack, improving monetization potential for rented GPU capacity. Nebius Targets Fast-Growing Agentic AI Market With Tavily Acquisition
• Positive Sentiment: Management reiterated aggressive FY2026 targets (large revenue range and connected-power goals, plus long-term margin targets), which supports upside if Nebius hits capacity milestones. Nebius Group Stock: Build, Sell, Repeat
• Neutral Sentiment: Multiple retail/investment outlets are listing NBIS among AI-infrastructure picks, keeping investor interest high but not a direct catalyst. 5 Best Artificial Intelligence Stocks to Buy in February
• Neutral Sentiment: The full earnings call and transcripts are available for deeper read; management comments clarify ramp timing and contract structure but contain both encouragement and caveats. Earnings Call Transcript
• Negative Sentiment: Q4 missed consensus on revenue ($227.7M vs. ~$246M expected) and EPS (reported -$0.69 vs. -$0.42 est.), prompting near-term profit-taking. Q4 Earnings Miss
• Negative Sentiment: Capital spending surged on GPUs and data center builds, and management cites energy/grid/connectivity as a gating factor — execution delays or higher financing/dilution risk could push out monetization of contracted capacity. Capex Surge / GPU & Data Center Expenses
• Negative Sentiment: Analyst views are mixed and short interest is notable — these factors increase volatility and mean upside depends on timely capacity hookups and execution. Analysts’ Opinions Are Mixed

About Nebius Group

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability.