Nebius Group Reports Strong Revenue Growth Amidst Capacity Delays and Increased Capital Expenditure
Nebius Group reported significant third-quarter revenue growth of 571% year-over-year, reaching $980.8 million and exceeding Wall Street expectations. Despite this surge in demand for its AI cloud services, the company faced a sharp stock decline after revealing that delays at third-party data centers have pushed certain computing capacity availability into the first half of 2027. To address these infrastructure needs, Nebius has significantly increased its capital expenditure projections, forecasting spending between $40 billion and $45 billion next year. While demand remains robust and existing contracts are intact, the inability to recognize revenue due to delivery delays led management to lower full-year revenue guidance to the low end of its previous range.