Nebius (NBIS) Stock: Company Signs $3 Billion Meta Deal, Reports 355% Revenue Growth

TLDR

• Nebius signed a $3 billion deal with Meta to provide AI infrastructure over five years, its second major hyperscaler contract after a $17.4 billion Microsoft deal in September.
• Third-quarter revenue jumped 355% to $146.1 million but missed estimates of $156.5 million, while the company posted a $100.4 million loss.
• Capital expenditures surged to $955.5 million from $172.1 million year-over-year as Nebius invests in GPUs, land, and power infrastructure.
• The company raised guidance for contracted power to over 2.5 gigawatts by end of 2026, up from 1 gigawatt previously, with connected power expected to quadruple.
• Nebius targets $7 billion to $9 billion in annualized revenue by end of 2026, far above the current $551 million run rate.

Nebius Group landed a $3 billion contract with Meta on Tuesday. The deal will see the neocloud provider deliver AI infrastructure to the social media giant over five years.

The announcement came as Nebius reported third-quarter results that fell short of expectations. Revenue jumped 355% to $146.1 million but missed analyst estimates of $156.5 million.

The company posted a loss of $100.4 million for the quarter. That compared to a loss of $39.7 million in the same period last year.

Nebius Group N.V., NBIS

Nebius shares moved erratically in premarket trading following the mixed news. The stock has surged fourfold this year to a market value of $27.61 billion through Monday’s close.

The Meta agreement marks the second major hyperscaler deal for Nebius. The company signed a $17.4 billion contract with Microsoft in September.

Demand for the Meta contract was so strong that Nebius had to limit its size. The company said it could only commit to capacity it already had available.

Nebius plans to deploy the necessary infrastructure for Meta over the next three months. The neocloud firm sold out of all available capacity during the third quarter.

Power Capacity Targets Get Big Boost

CEO Arkady Volozh told shareholders that capacity constraints represent the only real limit on revenue growth. The Amsterdam-based company is working to secure additional sites to expand operations.

Nebius raised its contracted power guidance to over 2.5 gigawatts by the end of 2026. The previous target stood at 1 gigawatt.

Connected power is expected to quadruple next year. The company sees this metric rising from 220 megawatts at year-end 2025 to between 800 megawatts and 1 gigawatt by late 2026.

Capital expenditures ballooned to $955.5 million in the September quarter. That compared to $172.1 million a year earlier as Nebius invests in GPUs, land, and power infrastructure.

The company operates in the neocloud market alongside rivals like CoreWeave. These firms provide hardware and cloud capacity as services to companies building AI infrastructure.

Revenue Projections Soar Past Analyst Expectations

Nebius targets annualized run-rate revenue of $7 billion to $9 billion by the end of 2026. The current ARR sits at $551 million as of September.

The only analyst estimate for Q4 2026 ARR comes in at $4 billion. That falls well below the company’s internal projections.

Big cloud providers like Microsoft and Amazon face capacity constraints due to surging AI demand. This dynamic has created opportunities for smaller specialized providers like Nebius.

The company announced an at-the-market equity program that allows it to issue up to 25 million shares. Management can use this tool to raise capital opportunistically.

Competitor CoreWeave saw its stock decline after reporting third-quarter results Monday. That company cut full-year revenue guidance due to delays in electrical infrastructure supporting its data centers.

Nebius will deploy the capacity needed for the Meta contract over the next three months, with demand remaining strong across its customer base.

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