SAN FRANCISCO — Nebius reported second-quarter revenue of $582.3 million, surpassing analyst estimates of $572.75 million. Shares rose more than 20 percent following the announcement Wednesday.
The results follow a similar pattern across AI infrastructure, where rival CoreWeave also raised its annual forecasts. Strong showings from both firms reinforce expectations that demand for AI computing capacity continues to exceed available supply.
Revenue from Nebius' core AI cloud division rose nearly sixfold during the quarter. The company signed four AI cloud deals averaging over $1 billion each, pushing total contract value up nearly fourfold and new-customer contract values up more than ninefold.
CEO Arkady Volozh said the company converts growing demand into "contracted, profitable growth" and that demand for AI computing remains well ahead of supply — adding that Nebius could sell all of its planned 2027 capacity under current terms.
Capital expenditures reached approximately $5.7 billion for the quarter, exceeding analyst expectations of $4.7 billion. Nebius is investing heavily in GPUs and expanding its data center footprint to meet rising demand.
The company raised its contracted power target for 2026 to 5 gigawatts, up from more than 4 gigawatts previously, and expects to deploy more than 1 gigawatt of capacity annually starting in 2027.
New AI cloud deals signed in the second quarter — featuring annual contract values above $20 million per megawatt — are scheduled to become operational in late fourth quarter, aligning with the company's capacity expansion plans.
Nebius expects to receive more than $9 billion in customer prepayments this year and reported over $40 billion in total customer commitments, providing long-term demand visibility.
Emarketer analyst Jacob Bourne acknowledged soaring demand for AI cloud capacity even as competition grows from entrants such as xAI, but questioned whether that demand is durable and diversified beyond the AI industry itself.
Nebius also operates a 1.2-gigawatt data center campus in Pennsylvania, a facility central to its large-scale infrastructure strategy, according to remarks Volozh made on the company's first-quarter 2026 earnings call.
The company has raised GPU rental prices 30 percent, according to public disclosures, reflecting high utilization rates and supply constraints in the market for specialized AI compute. Rivals CoreWeave, Lambda and Crusoe also rent H100 and H200 GPUs.
