Nebius Group’s third-quarter 2026 results highlight the accelerating commercial demand for artificial intelligence infrastructure, while also exposing the substantial financial commitments required to serve that market. The Amsterdam-based AI cloud provider delivered exceptional revenue growth and a significant improvement in adjusted profitability, but its expanding infrastructure program places capital requirements, cash generation and execution capacity at the center of its investment outlook.

Revenue Growth Reflects Expanding AI Cloud Demand

Nebius reported Q3 revenue of $980.8 million, representing a 571% increase from $146.1 million in the same quarter of 2025. The result exceeded the approximately $908 million analyst estimate shown in the earnings snapshot. Its core Nebius AI Cloud business generated $973.8 million, accounting for approximately 99% of group revenue and increasing 643% year over year.

The expansion was supported by additional computing capacity becoming operational and revenue generated through the company’s asset-light model. However, an important distinction lies within the composition of quarterly sales: management disclosed approximately $325 million in non-recurring revenue from the initial phase of an asset-light partnership rollout. Under this model, partners finance capacity while deploying Nebius architecture and its cloud platform. Management expects such revenue to become more regular as the partnership network expands, although the initial contribution should not automatically be treated as recurring quarterly income.

Adjusted Profitability Improves, but Cash Generation Remains a Challenge

Nebius recorded adjusted EBITDA of $465.8 million, compared with an adjusted EBITDA loss of $5.2 million a year earlier. Adjusted net income reached $90.9 million, reversing an adjusted loss of $100.4 million in Q3 2025. These non-GAAP measures indicate a substantial improvement in operating performance as revenue scales.

Nevertheless, the company reported a GAAP net loss from continuing operations of $37.5 million, narrower than the $119.6 million loss recorded in the prior-year quarter. Diluted GAAP earnings per share remained negative at $0.13. Operating cash flow from continuing operations was also negative by $273 million, compared with an $80.6 million outflow a year earlier.

The distinction between adjusted profitability and cash generation is particularly important for an infrastructure provider. Nebius held approximately $7.4 billion in cash and cash equivalents at September 30, but its spending requirements remain substantial. The company recorded approximately $7.3 billion in purchases of property, equipment and intangible assets during the quarter, reflecting investment in GPUs, data-center hardware and infrastructure expansion.

Capital Expenditure and 2027 Guidance Define the Next Phase

Management’s updated outlook illustrates the scale of the company’s expansion strategy. For 2026, Nebius expects revenue toward the lower end of its previous $3 billion to $3.4 billion range, with an adjusted EBITDA margin of approximately 40%. Capital expenditure is now expected to reach approximately $27 billion, above its earlier $20 billion to $25 billion range, partly because the company is investing in capacity intended to support future growth.

For 2027, management outlined revenue of $12 billion to $13 billion and capital expenditure of $40 billion to $45 billion. It also expects to reach pre-tax break-even in the fourth quarter of 2027. The company anticipates that customer prepayments and asset-backed financing linked to investment-grade customer contracts, together with its balance sheet, will cover approximately 75% to 85% of planned 2027 capital expenditure.

These targets remain dependent on successful infrastructure delivery, financing conditions and customer demand. Nebius has also acknowledged that some third-party capacity previously expected to become available in 2026 has been delayed into the first half of 2027, shifting a portion of anticipated revenue into the following year.

The next stage of Nebius’s development will therefore be measured not only by revenue growth, but by its ability to bring new capacity online, convert customer commitments into recurring revenue and manage the funding required for expansion. Investors will be watching capital expenditure, operating cash flow, infrastructure delivery schedules and progress toward the 2027 profitability target. The results demonstrate the commercial opportunity in AI infrastructure, while reinforcing that growth at scale must ultimately translate into sustainable cash generation.