Nebius shares fall 16% as data centre delays cut its 2026 outlook

image

Nebius shares fell 16% on Thursday after the Amsterdam-based AI cloud company cut its outlook for this year. It also raised its spending plans, CNBC’s Jordan Novet reported. The fall came despite third-quarter revenue that rose 571% from a year earlier, to $980.8m.

Analysts surveyed by LSEG had expected $907.5m, according to CNBC. Nebius posted adjusted earnings before interest, tax, depreciation and amortisation of $465.8m, against a loss of $5.2m a year earlier, its results show. Its net loss narrowed to $37.5m from $119.6m.

A weaker year, a bigger next one

Nebius now expects 2026 revenue at the low end of its $3bn to $3.4bn range. Founder and chief executive Arkady Volozh gave the outlook in his letter to shareholders. Analysts had expected $3.37bn, CNBC reported. For 2027, Nebius expects revenue of $12bn to $13bn.

The cut comes from delays at data centre sites that Nebius rents from other companies. Some capacity due this year has moved to the first half of 2027. The contracts behind it remain in place, Deborah Sophia reported for Reuters.

One of them is a 300MW site in Vineland, New Jersey, held up by delays in power, John Reynolds reported for Tech.eu. Microsoft is a major customer there.

“Building at this scale is hard, and delays are part of our industry right now. We are not immune,” Volozh said, according to Tech.eu. “Customers have been kept informed and none of that capacity is cancelled.”

All of Nebius’s own sites under construction are on track or ahead of schedule, Volozh said, according to Reuters. He added that most of the next gigawatt Nebius brings online will be on its own sites.

Spending up to $45bn next year

Nebius now expects to spend about $27bn this year, up from its earlier forecast of $20bn to $25bn, CNBC reported. For 2027, it plans $40bn to $45bn, well above the $28.77bn analysts expected, according to FactSet data cited by CNBC.

Customer prepayments and asset-backed financing will cover 75% to 85% of next year’s spending, the company said. That financing rests on existing contracts with large customers such as Microsoft and Meta, according to Reuters.

“We have no doubt that this capacity will be sold. Clients are looking for capacity already for 2028, and prices for 2027 are going up. We do not see any risk,” chief financial officer Dado Alonso said, according to Reuters.

Nebius expects to break even on a pre-tax basis by the end of 2027. In October, it borrowed $3.5bn from Citi.

The Nvidia factor

Thursday’s fall came on the day Jensen Huang resigned as Nvidia’s chief executive. Nvidia held about $329m of Nebius shares at the end of June, CNBC reported, citing a filing.

Rival CoreWeave reported results that beat estimates on Tuesday, and ruled out new unsecured debt. Nebius had lost more than a third of its value in October, Reuters reported. Investors had questioned the cost of the AI build-out.

“The demand for AI is real and substantial. Everything else, like building the capacity and financing it, is just a task,” Volozh said on a call with analysts, according to CNBC.

Don’t miss these tips!

We don’t spam! Read more in our privacy policy

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot this week

Man United vs. Aston Villa final score, result, highlights, stats as Zirkzee, Dorgu salvage incredible draw

Manchester United made error-strewn starts to both halves and...

Browns’ Shedeur Sanders claims ‘smiling’ comment about Saints defense was taken out of context

However, Sanders claims he doesn't care about how the...

Shooting Video With Honor’s New Magic 9 Pro Max Lets You Feel Like a Movie Director

While standing on the roof of the Griffith Observatory...

Chris Ware’s Fractal Pandemic Chronicle

Page-TurnerA Cartoonist’s Depiction of the Moment Things Got WeirdThe...

Topics

Related Articles

Popular Categories

News Feed

Lawson and Lindblad to remain at Racing Bulls for 2027

Racing Bulls have confirmed they will field an unchanged line-up of Liam Lawson and Arvid Lindblad for the 2027 season, with both drivers extending...

Lawson and Lindblad to remain at Racing Bulls for 2027

Racing Bulls have confirmed they will field an unchanged line-up of Liam Lawson and Arvid Lindblad for the 2027 season, with both drivers extending...

Why Racing Bulls stuck with Lawson and Lindblad

There'll be no change in Racing Bulls' line-up for next season, with Arvid Lindblad's encouraging rookie year and a sensational campaign from Liam Lawson...

Why Racing Bulls stuck with Lawson and Lindblad

There'll be no change in Racing Bulls' line-up for next season, with Arvid Lindblad's encouraging rookie year and a sensational campaign from Liam Lawson...

Russell launches new karting academy for young racers

George Russell has revealed the creation of his own karting academy, which will seek to find “hidden stars” and provide support to help them...

Russell launches new karting academy for young racers

George Russell has revealed the creation of his own karting academy, which will seek to find “hidden stars” and provide support to help them...

Tsolov to serve as Red Bull and Racing Bulls reserve driver

Red Bull and Racing Bulls have confirmed that Formula 2 racer Nikola Tsolov will serve as their shared reserve driver for the 2027 season. The...

Tsolov to serve as Red Bull and Racing Bulls reserve driver

Red Bull and Racing Bulls have confirmed that Formula 2 racer Nikola Tsolov will serve as their shared reserve driver for the 2027 season. The...

Trivia: False Start

Formula 1's next generation of stars are already making their mark on the sport, with Kimi Antonelli becoming the youngest-ever World Champion. From record-breaking achievements...

Trivia: False Start

Formula 1's next generation of stars are already making their mark on the sport, with Kimi Antonelli becoming the youngest-ever World Champion. From record-breaking achievements...

Why the F1 driver market might produce one last twist

On paper, the news Racing Bulls will keep both Liam Lawson and Arvid Lindblad for next season leaves just one spot to be confirmed,...

Why the F1 driver market might produce one last twist

On paper, the news Racing Bulls will keep both Liam Lawson and Arvid Lindblad for next season leaves just one spot to be confirmed,...

‘Maybe We’ve Gone a Step Too Far’ — Ocarina of Time Remake Producer Reveals the Game’s ReDeads Were Originally Supposed to Be Even Scarier

Producer Hidemaro Fujibayashi explained why the development team behind the Ocarina of Time Remake toned down the ReDeads to make them less scary.If you...

Doom Developer id Software Confirms Work on New Game, Will Be Directed by Hugo Martin

At Xbox's 25th anniversary celebration at its Fan Fest event in Seattle, id Software confirmed that it is working on a new game, wrapping...

U2 Praise Cameron Winter, Lambrini Girls, & Fontaines D.C.

Mere hours from now, U2 will release Carnaval De Luz, their first album of new material in nine years. As part of the promotional...

SpaceX’s Starship megarocket will launch to orbit on Nov. 13. Will you be able to spot it in the night sky?

Share this article Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter SpaceX's Starship megarocket is slated to launch on its...

As Nvidia CEO Jensen Huang Resigns, the Future of GeForce Hangs in the Balance

After 33 years, Jensen Huang has resigned from Nvidia, following a scandal involving a suspected Chinese spy. This has all kinds of implications for...

‘Avengers: Doomsday’ Lists Ryan Reynolds and Hugh Jackman Among 10 Writers

The chances that Ryan Reynolds and Hugh Jackman could be back as Deadpool and Wolverine in “Avengers: Doomsday” may be getting higher. Eagle-eyed Marvel fans...

Several Microsoft services appear to be down – what we know

ZDNET’s key takeaways Microsoft is experiencing an outage across several services, including Teams and Outlook. The company’s service status page appears to be down. It’s unclear...

AMD plans to invest in PsiQuantum as they team up on quantum computers

AMD plans to invest in PsiQuantum, as the two expand their partnership on quantum computing. The companies announced the deal on 12 November. Neither...

Popular articles

Lawson and Lindblad to remain at Racing Bulls for 2027

Racing Bulls have confirmed they will field an unchanged line-up of Liam Lawson and Arvid Lindblad for the 2027 season, with both drivers extending...

Lawson and Lindblad to remain at Racing Bulls for 2027

Racing Bulls have confirmed they will field an unchanged line-up of Liam Lawson and Arvid Lindblad for the 2027 season, with both drivers extending...

Why Racing Bulls stuck with Lawson and Lindblad

There'll be no change in Racing Bulls' line-up for next season, with Arvid Lindblad's encouraging rookie year and a sensational campaign from Liam Lawson...

Why Racing Bulls stuck with Lawson and Lindblad

There'll be no change in Racing Bulls' line-up for next season, with Arvid Lindblad's encouraging rookie year and a sensational campaign from Liam Lawson...

Russell launches new karting academy for young racers

George Russell has revealed the creation of his own karting academy, which will seek to find “hidden stars” and provide support to help them...

Russell launches new karting academy for young racers

George Russell has revealed the creation of his own karting academy, which will seek to find “hidden stars” and provide support to help them...

Tsolov to serve as Red Bull and Racing Bulls reserve driver

Red Bull and Racing Bulls have confirmed that Formula 2 racer Nikola Tsolov will serve as their shared reserve driver for the 2027 season. The...

Tsolov to serve as Red Bull and Racing Bulls reserve driver

Red Bull and Racing Bulls have confirmed that Formula 2 racer Nikola Tsolov will serve as their shared reserve driver for the 2027 season. The...

Trivia: False Start

Formula 1's next generation of stars are already making their mark on the sport, with Kimi Antonelli becoming the youngest-ever World Champion. From record-breaking achievements...

Trivia: False Start

Formula 1's next generation of stars are already making their mark on the sport, with Kimi Antonelli becoming the youngest-ever World Champion. From record-breaking achievements...

Why the F1 driver market might produce one last twist

On paper, the news Racing Bulls will keep both Liam Lawson and Arvid Lindblad for next season leaves just one spot to be confirmed,...

Why the F1 driver market might produce one last twist

On paper, the news Racing Bulls will keep both Liam Lawson and Arvid Lindblad for next season leaves just one spot to be confirmed,...

‘Maybe We’ve Gone a Step Too Far’ — Ocarina of Time Remake Producer Reveals the Game’s ReDeads Were Originally Supposed to Be Even Scarier

Producer Hidemaro Fujibayashi explained why the development team behind the Ocarina of Time Remake toned down the ReDeads to make them less scary.If you...

Doom Developer id Software Confirms Work on New Game, Will Be Directed by Hugo Martin

At Xbox's 25th anniversary celebration at its Fan Fest event in Seattle, id Software confirmed that it is working on a new game, wrapping...

U2 Praise Cameron Winter, Lambrini Girls, & Fontaines D.C.

Mere hours from now, U2 will release Carnaval De Luz, their first album of new material in nine years. As part of the promotional...

SpaceX’s Starship megarocket will launch to orbit on Nov. 13. Will you be able to spot it in the night sky?

Share this article Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter SpaceX's Starship megarocket is slated to launch on its...

As Nvidia CEO Jensen Huang Resigns, the Future of GeForce Hangs in the Balance

After 33 years, Jensen Huang has resigned from Nvidia, following a scandal involving a suspected Chinese spy. This has all kinds of implications for...

‘Avengers: Doomsday’ Lists Ryan Reynolds and Hugh Jackman Among 10 Writers

The chances that Ryan Reynolds and Hugh Jackman could be back as Deadpool and Wolverine in “Avengers: Doomsday” may be getting higher. Eagle-eyed Marvel fans...

Several Microsoft services appear to be down – what we know

ZDNET’s key takeaways Microsoft is experiencing an outage across several services, including Teams and Outlook. The company’s service status page appears to be down. It’s unclear...

AMD plans to invest in PsiQuantum as they team up on quantum computers

AMD plans to invest in PsiQuantum, as the two expand their partnership on quantum computing. The companies announced the deal on 12 November. Neither...