Nebius Group Reports Strong Q3 2026 Results with Rising AI Capacity Pricing
During its third-quarter 2026 earnings call, Nebius Group announced a significant shift in its capital expenditure model, noting that customer pre-payments now cover over 100% of the costs required to build out new capacity. This self-funding mechanism reduces reliance on external debt and shortens the investment payback window to approximately 19 months. The company is also demonstrating significant pricing power within the AI compute market, with third-quarter contract prices exceeding $25 million per megawatt. To mitigate operational risks associated with third-party co-location delays, Nebius is pivoting toward developing in-house data centers to maintain control over deployment schedules and margins. Looking forward, management provided an optimistic outlook for 2027, projecting revenue growth of approximately fourfold to a range of $12 billion to $13 billion. The company expects to reach pre-tax profitability by late 2027 as its self-owned infrastructure comes online.
Tickers: $NBIS
Topics: AI infrastructure capital expenditure customer pre-payments revenue guidance