Nebius Group Outpaces IREN Limited with Strong AI Cloud Performance
In Q2 FY26, Nebius Group (NASDAQ: NBIS) reported $582.3 million in revenue, a 454% year-over-year increase driven by its AI cloud unit which generated $574.9 million and achieved a 50% adjusted EBITDA margin. The company's strong performance is supported by a $27B Meta agreement and significant cash reserves of $8 billion. In contrast, IREN Limited (NASDAQ: IREN) reported $137.2 million in revenue with a notable decline due to mining rig shutdowns and a non-cash impairment charge that led to a net loss of $684 million. However, its AI cloud segment saw significant growth, doubling sequentially to reach $70.5 million. Both companies are addressing the same infrastructure shortage but through different strategies: Nebius focuses on software-driven margins while IREN leverages owned power assets and GPU deployment efficiency.
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Topics: AI infrastructure cloud computing EBITDA margin M&A activity revenue growth