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

Nebius Group (NASDAQ:NBIS) posted its quarterly earnings results on Thursday. The company reported ($0.69) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.42) by ($0.27), Zacks reports. Nebius Group had a negative return on equity of 11.79% and a net margin of 62.31%.The business had revenue of $227.70 million for the quarter, compared to analyst estimates of $246.05 million.

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 8.2%

NASDAQ NBIS traded up $7.35 during trading hours on Friday, hitting $97.08. 11,573,276 shares of the company’s stock traded hands, compared to its average volume of 13,446,466. Nebius Group has a 52 week low of $18.31 and a 52 week high of $141.10. The firm has a market capitalization of $24.45 billion, a P/E ratio of -126.12 and a beta of 3.90. The business’s fifty day moving average price is $92.41 and its two-hundred day moving average price is $92.79.

Analysts Set New Price Targets

NBIS has been the subject of a number of analyst reports. CICC Research started coverage on shares of Nebius Group in a report on Tuesday, November 11th. They set an “outperform” rating and a $143.00 target price for the company. Weiss Ratings downgraded Nebius Group from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, January 15th. Morgan Stanley began coverage on shares of Nebius Group in a research note on Thursday, January 15th. They issued an “equal weight” rating and a $126.00 price target on the stock. DA Davidson reiterated a “buy” rating and set a $150.00 target price on shares of Nebius Group in a research report on Wednesday, November 12th. Finally, Citizens Jmp assumed coverage on Nebius Group in a report on Wednesday, November 19th. They set a “market outperform” rating and a $175.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Nebius Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $142.38.

Institutional Trading of Nebius Group

Hedge funds have recently made changes to their positions in the business. Shay Capital LLC purchased a new stake in Nebius Group in the 2nd quarter valued at about $968,000. Orbis Allan Gray Ltd increased its holdings in Nebius Group by 12.4% during the 2nd quarter. Orbis Allan Gray Ltd now owns 17,651,930 shares of the company’s stock worth $976,681,000 after purchasing an additional 1,949,708 shares during the period. Orion Porfolio Solutions LLC purchased a new stake in shares of Nebius Group in the 2nd quarter worth $224,000. Man Group plc bought a new position in shares of Nebius Group during the 2nd quarter worth $4,459,000. Finally, BNP Paribas Financial Markets purchased a new position in shares of Nebius Group during the second quarter valued at $5,133,000. 21.90% of the stock is currently owned by hedge funds and other institutional investors.

Key Nebius Group News

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

• Positive Sentiment: Acquisition and product strategy — Nebius is integrating Tavily to bolster agentic search/AI stack, improving its software offering atop its GPU/data‑center footprint; this strengthens differentiation and revenue mix. Nebius Group Reshapes AI Stack And Oversight With Tavily Deal
• Positive Sentiment: Huge top‑line growth and sold‑out capacity — ARR and operational metrics point to rapid demand for Nebius’ AI cloud services; management says capacity is tight and new data centers are coming online (supporting future revenue). Nebius Reports Fourth Quarter and Full-Year 2025 Financial Results
• Neutral Sentiment: Positive analyst/press coverage — Several bullish writeups and inclusion on AI‑stock lists highlight Nebius as an AI‑infrastructure play, which can attract longer‑term growth investors even if near‑term volatility continues. 5 Best Artificial Intelligence Stocks to Buy in February
• Negative Sentiment: Quarterly miss and widened losses — Q4 revenue and EPS missed consensus, prompting near‑term selling pressure and concern over execution versus lofty expectations. NBIS stock tumbles 5% after Q4 revenue miss
• Negative Sentiment: Rising capex and balance‑sheet pressure — Management is investing heavily in GPUs and data centers (including a planned 240MW site in France), driving sharp capex increases and higher debt; this raises dilution/financing risk if growth or margin improvements slip. AI cloud firm Nebius posts surge in capex

Nebius Group Company Profile

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.