Nebius beat quarterly revenue estimates on Wednesday as booming demand for AI infrastructure helped it land larger contracts and raise prices, sending shares of the cloud-computing company more than 15% higher in premarket trading.
Revenue at Nebius' mainstay AI cloud unit rose nearly six-fold, powering overall sales to $582.3 million in the second quarter ended June — above the $572.75 million consensus, according to LSEG data, and up from $105.1 million a year earlier. CEO Arkady Volozh said the company is converting growing demand into 'contracted, profitable growth.'
The Nvidia-powered AI cloud provider closed four deals averaging over $1 billion each during the quarter. Total contract value nearly quadrupled from the prior quarter, while new-customer contract values jumped more than ninefold.
Capital expenditures totaled about $5.7 billion during the quarter, topping analysts' expectations of $4.7 billion, as Nebius continues investing aggressively in GPUs and data-center expansion. The company said it could sell all of its planned 2027 capacity at current terms but was retaining some capacity to capture future demand.
It raised its contracted power target for the end of 2026 to 5 gigawatts, from more than 4 gigawatts previously, and expects to deploy more than 1 GW of capacity annually starting in 2027. Nebius expects more than $9 billion in customer prepayments this year and reports more than $40 billion in customer commitments. Shares have surged more than 130% so far this year.
