Nebius Shares Drop 10% Following Disappointing Financial Guidance
Nebius shares fell 10% after the company issued cautious revenue projections and forecasted massive capital expenditures despite beating third-quarter revenue estimates.
Nebius Group shares declined 10% on Thursday after the company issued disappointing financial guidance, overshadowing a third-quarter revenue beat. The company reported revenue of $980.8 million, exceeding analyst estimates of $907.5 million, and noted a 571% revenue jump alongside a reduced net loss of $37.5 million.
CEO Arkady Volozh projected fiscal year 2026 revenue at the low end of the $3 billion to $3.4 billion range, while forecasting capital expenditures of $27 billion. For 2027, the company expects revenue between $12 billion and $13 billion and capital expenditures between $40 billion and $45 billion.
The downturn comes amid broader neocloud sector volatility and political challenges, including U.S. ballot initiatives that restrict data center development. Nebius also faces potential instability from its investor, Nvidia, following reports that the Nvidia board may remove co-founder Jensen Huang due to revelations regarding his personal affairs.
