AI cloud company beats expectations, expands data center footprint, and deepens partnerships with major tech players
Nebius Group (NBIS) reported blockbuster first-quarter 2026 earnings results as surging demand for artificial intelligence infrastructure continued fueling rapid growth across its AI cloud business. The company posted revenue of $399 million for the quarter, representing a massive 684% increase from $50.9 million during the same period last year and exceeding Wall Street expectations.
Shares of Nebius surged following the earnings release as investors responded positively to the company’s accelerating expansion in the rapidly growing AI infrastructure market. The company also reported adjusted EBITDA of $129.5 million, a sharp improvement from a loss of $53.7 million one year earlier.
CEO Arkady Volozh said customer demand for AI computing capacity continues exceeding available GPU supply, reflecting the intense race among technology companies to secure infrastructure for generative AI and machine learning workloads. Nebius currently serves major clients including Meta and Microsoft through large-scale multi-year AI infrastructure agreements.
To support future growth, Nebius raised its annual capital expenditure forecast to between $20 billion and $25 billion, up from its prior range of $16 billion to $20 billion. The company also announced plans for a new AI infrastructure site in Pennsylvania capable of supporting 1.2 gigawatts of power capacity once fully operational.
Nebius has rapidly emerged as one of the leading “neocloud” companies competing in the AI infrastructure sector alongside firms such as CoreWeave. The company is also expanding through acquisitions, including its recently announced $643 million purchase of Eigen AI to strengthen its AI inference and compute platform capabilities.
Despite aggressive spending and ongoing expansion costs, investors appear increasingly optimistic that Nebius could become one of the key infrastructure providers powering the global AI economy.
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