Nebius Group N.V. (NBIS)
NASDAQ:NBIS
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Nebius Group
(NASDAQ:NBIS)
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Rating:60Neutral
Price Target:
$208.00
▲(32.37% Upside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by mixed financial quality—ongoing operating losses, higher leverage, and deeply negative free cash flow—despite improving revenue/gross profit. Technicals are strong and the earnings call supports the growth narrative with reiterated guidance and expanding margins, but the higher CapEx and financing/timing risks, along with a negative P/E and no dividend support, temper the overall rating.
Positive Factors
Revenue Growth
Nebius has transitioned into rapid scale: explosive YoY and sequential revenue gains and a $1.9B Nebius AI annualized run rate show durable demand for GPU cloud. Sustained pipeline growth and rising ARR indicate structural customer adoption and market share capture with multi-quarter relevance.
Negative Factors
Very High CapEx & Negative FCF
Management materially increased 2026 CapEx to accelerate capacity, yet free cash flow is deeply negative despite positive operating cash flow. The capital intensity creates persistent financing requirements, heightening dilution and refinancing risk if revenue timing slips or asset-backed financing is delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Nebius has transitioned into rapid scale: explosive YoY and sequential revenue gains and a $1.9B Nebius AI annualized run rate show durable demand for GPU cloud. Sustained pipeline growth and rising ARR indicate structural customer adoption and market share capture with multi-quarter relevance.
Read all positive factors
Nebius Group (NBIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.96B
Dividend YieldN/A
Average Volume (3M)16.74M
Price to Earnings (P/E)71.4
Beta (1Y)2.27
Revenue Growth443.93%
EPS GrowthN/A
CountryUS
Employees1,371
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)3.39
Shares Outstanding218,158,550
10 Day Avg. Volume20,128,338
30 Day Avg. Volume16,739,567
Financial Highlights & Ratios
PEG Ratio-1.99
Price to Book (P/B)4.59
Price to Sales (P/S)39.98
P/FCF Ratio-5.75
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue63.40
Enterprise Value/Gross Profit132.33
Enterprise Value/Ebitda-1.05K
Forecast
1Y Price Target
$221.71Price Target Upside41.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)-1.98
Revenue Forecast (FY)$3.39B
Nebius Group Business Overview & Revenue Model
Company Description
Nebius Group N.V., operates as a technology company that engages in building full-stack infrastructure to service the global AI industry. Its businesses include Nebius, an AI-centric cloud platform built for intensive AI workloads. Nebius builds f...
How the Company Makes Money
Nebius Group makes money primarily by selling cloud infrastructure and cloud services, with a focus on high-performance GPU compute used for AI workloads. Revenue is generated through usage-based and/or contract-based charges for compute (e.g., GP...
Nebius Group Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and commercial momentum: exceptional revenue and margin expansion, a large cash balance and significant contracted capacity growth, supported by strategic partnerships (Meta, NVIDIA), product launches and targeted M&A. These positives are tempered by materially higher CapEx needs, near-term margin timing variability, reliance on large strategic contracts for financing and some operational and political build risks. On balance, the highlights materially outweigh the lowlights.Positive Updates
Explosive Revenue Growth
Group revenue grew 684% year-over-year to $399 million in Q1 and was up 75% sequentially. Nebius AI (excl. consolidated investments) revenue rose 841% YoY to $390 million, an 82% quarter-over-quarter increase and represented 98% of group revenue.
Negative Updates
Significantly Higher CapEx Requirement
Full-year CapEx guidance was raised to $20–25 billion from $16–20 billion to fund earlier build for 2027 capacity, increasing near-term financing needs despite a strong cash position; management plans to use asset-backed financing, debt and equity to fund the increase.
Read all updates
Q1-2026 Updates
Positive
Negative
Explosive Revenue Growth
Group revenue grew 684% year-over-year to $399 million in Q1 and was up 75% sequentially. Nebius AI (excl. consolidated investments) revenue rose 841% YoY to $390 million, an 82% quarter-over-quarter increase and represented 98% of group revenue.
Read all positive updates
Company Guidance
Nebius reiterated 2026 guidance for annualized run‑rate revenue of $7–9B, group revenue of $3.0–3.4B and group adjusted EBITDA margin of ~40%, while raising 2026 CapEx to $20–25B (from $16–20B) to fund 2027 capacity that should begin contributing to revenue in H1‑2027. Q1 results that underpin the outlook included group revenue of $399M (+684% YoY, +75% QoQ), Nebius AI revenue of $390M (+841% YoY, +82% QoQ) and Nebius AI ARR of $1.9B (up >50% QoQ); group adjusted EBITDA was $130M (32% margin) and Nebius AI adjusted EBITDA margin was 45% (up from 24% in Q4). The company closed Q1 with $9.3B cash, $2.3B operating cash flow, raised >$6B year‑to‑date (including ~$4.3B of convertible notes and $2B NVIDIA equity), has contracted >3.5GW of power and is targeting at least 4GW (including a 1.2GW Pennsylvania site; owned contracted capacity >75%), saw pipeline grow 3.5x QoQ, and highlighted a non‑linear margin cadence (Q2 dip, back to Q1 levels in Q3, higher in Q4).Nebius Group Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 877.90M | 529.80M | 117.50M | 20.90M | 13.50M | 4.76B |
| Gross Profit | 420.60M | 363.60M | 44.10M | -11.00M | -14.90M | 2.43B |
| EBITDA | -52.77M | -192.20M | -363.40M | -298.20M | -130.50M | 109.87M |
| Net Income | 836.40M | 101.70M | -641.40M | 241.30M | 745.60M | -196.01M |
Balance Sheet | ||||||
| Total Assets | 22.30B | 12.45B | 3.55B | 8.76B | 8.28B | 6.91B |
| Cash, Cash Equivalents and Short-Term Investments | 9.30B | 3.68B | 2.45B | 121.20M | 1.13B | 1.44B |
| Total Debt | 9.50B | 4.89B | 49.70M | 584.76M | 1.39B | 1.89B |
| Total Liabilities | 15.06B | 7.84B | 294.90M | 5.46B | 3.74B | 3.25B |
| Stockholders Equity | 7.24B | 4.61B | 3.25B | 3.29B | 4.25B | 3.46B |
Cash Flow | ||||||
| Free Cash Flow | -2.47B | -3.68B | -562.10M | 746.40M | 682.40M | -473.75M |
| Operating Cash Flow | 3.01B | 384.80M | 245.60M | 829.80M | 697.00M | 124.62M |
| Investing Cash Flow | -5.73B | -4.23B | 311.60M | -1.21B | -403.10M | 294.94M |
| Financing Cash Flow | 10.60B | 5.13B | 825.50M | 375.60M | -100.30M | -1.14B |
Nebius Group Technical Analysis
Positive
157.14
Price Trends
159.00
Positive
128.70
Positive
112.59
Positive
Market Momentum
18.36
Negative
66.92
Neutral
77.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBIS, the sentiment is Positive. The current price of 157.14 is below the 20-day moving average (MA) of 198.76, below the 50-day MA of 159.00, and above the 200-day MA of 112.59, indicating a bullish trend. The MACD of 18.36 indicates Negative momentum. The RSI at 66.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBIS.
Nebius Group Risk Analysis
Nebius Group disclosed 53 risk factors in its most recent earnings report. Nebius Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nebius Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $28.02B | 279.52 | 1.32% | ― | 15.67% | ― | |
71 Outperform | $82.91B | -73.73 | -56.40% | ― | 31.07% | 16.46% | |
68 Neutral | $15.85B | 61.30 | 154.32% | ― | 17.61% | 119.62% | |
66 Neutral | $585.85B | 39.77 | 57.35% | 1.00% | 14.87% | 29.81% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $56.96B | 71.37 | 16.37% | ― | 443.93% | ― | |
49 Neutral | $58.30B | -36.25 | -40.33% | ― | 129.93% | -21.73% |
* Communication Services Sector Average
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Nebius Group Corporate Events
Nebius Group Posts Surging Q1 2026 Revenue but Wider Operating Costs in AI Cloud Push
May 20, 2026
Nebius Group N.V. reported operating and financial results for the three months ended March 31, 2025 and 2026, highlighting the rapid expansion of its AI cloud business and related units TripleTen and Avride. The company filed a Form 6‑K wit...
Nebius Posts Soaring Q1 2026 Revenue and Profitability, Secures 1.2 GW for New U.S. AI Facility
May 13, 2026
On May 13, 2026, Nebius Group reported unaudited first‑quarter 2026 results showing revenues surged to $399.0 million from $50.9 million a year earlier, with adjusted EBITDA swinging from a $53.7 million loss to a $129.5 million profit and n...
Nebius to Acquire Eigen AI in $643 Million Deal to Bolster Frontier Inference Platform
May 1, 2026
On May 1, 2026, Nebius Group N.V. signed a merger agreement to acquire Eigen AI (MagicByte, Inc.), a Bay Area‑based inference and model optimization specialist, in a cash‑and‑stock deal valued at about $643 million, subject to cu...
Nebius Group Raises $4.3 Billion in Convertible Notes to Accelerate AI Infrastructure Expansion
Mar 20, 2026
Nebius Group, the Amsterdam-based Nasdaq-listed AI infrastructure and cloud company, is focused on delivering a full‑stack AI platform for developers and enterprises globally, supporting workloads from training to deployment. With a rapidly ...
Nebius Group Plans $3.75 Billion Convertible Note Offering to Fund AI Cloud Expansion
Mar 17, 2026
On March 17, 2026, Nebius Group N.V. announced a proposed private offering of $3.75 billion in convertible senior notes, split between $2.0 billion notes due 2031 and $1.75 billion notes due 2033, to be sold to qualified institutional buyers under...
Nebius Seals $27 Billion AI Infrastructure Deal With Meta to Power Long-Term Cloud Growth
Mar 16, 2026
On March 16, 2026, Nebius Group announced that its U.S. subsidiary Nebius, Inc. signed a five‑year AI infrastructure supply agreement with Meta Platforms valued at up to approximately $27 billion, marking one of the first large‑scale d...
Nebius Secures $2 Billion NVIDIA Investment and Strategic AI Cloud Partnership
Mar 11, 2026
On March 11, 2026, Nebius Group N.V. announced a $2 billion private placement with NVIDIA Corporation via a pre-funded warrant for 21,065,936 Class A shares, issued in an exempt transaction under U.S. securities laws. Nebius plans to use the proce...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.