Shares of Nebius Group (NASDAQ:NBIS) surged nearly 15% in premarket trading on Wednesday after the company reported first-quarter results that exceeded analyst expectations and highlighted accelerating growth across its AI cloud business.
The stock jumped 14.70% following the earnings release.
Revenue growth accelerates sharply
Nebius posted adjusted earnings per share of $2.11 for the quarter ended March 31, 2026, far above analyst expectations for a loss of -$0.78 per share.
Revenue climbed 684% year-on-year to $399 million, surpassing the consensus estimate of $388.57 million.
The company said the strong top-line performance reflected growing demand for its AI cloud platform as infrastructure capacity continues to expand.
Profitability improves significantly
Adjusted EBITDA totaled $129.5 million for the quarter, compared with a loss of $53.7 million in the same period last year, marking a major improvement in profitability.
However, adjusted net loss widened 20% year-on-year to $100.3 million from $83.6 million.
Nebius also reported GAAP net income from continuing operations of $621.2 million, versus a loss of $104.3 million in the first quarter of 2025.
The improvement was primarily driven by a $780.6 million gain tied to the revaluation of equity investments.
Company expands AI infrastructure footprint
“Nebius today also announced that it has secured up to 1.2 GW of power and land for a new, owned AI factory at a site in Pennsylvania,” said Arkady Volozh in the company’s quarterly shareholder letter.
The company reported operating cash flow from continuing operations of $2.26 billion, compared with negative $184.1 million in the prior-year quarter.
Capital spending and fundraising increase
Nebius invested $2.47 billion in property, equipment and intangible assets during the quarter, representing year-on-year growth of 355% as the company aggressively expanded capacity.
The company also raised $4.34 billion through convertible notes and secured an additional $2 billion from prefunded warrants during the quarter.
As a result, Nebius ended the period with $9.3 billion in cash and cash equivalents.