Nebius Q1 Results Fuel AI Cloud Surge
Nebius Q1 results show an AI-cloud revenue surge and positive adjusted EBITDA, while power commitments and a Meta capacity deal prompted trading flows.
KEY TAKEAWAYS
- Reported Q1 revenue of $399 million led by AI cloud revenue of $390 million, 98.0% of total.
- Adjusted EBITDA swung to a $130 million profit from a prior-year loss.
- Disclosed up-to-$27.0 billion five-year Meta capacity deal and secured up to 1.2 GW power.
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Nebius Group N.V. (NASDAQ: NBIS) reported Nebius Q1 results on May 13, 2026, as AI-cloud demand drove a surge in revenue and pushed adjusted EBITDA into positive territory. The company also disclosed power commitments and a multi-year Meta capacity agreement.
Quarterly Results and Buildout Commitments
For the quarter ended March 31, 2026, Nebius reported revenue of $399 million, up 684% year over year. AI cloud revenue reached $389.7 million, representing 98% of total sales and rising 841% from a year earlier. Adjusted EBITDA swung to a profit of $129.5 million from a loss the prior year. Capital spending on property, equipment, and intangibles totaled $2.47 billion, a 355% increase year over year. Cash and equivalents stood at $9.3 billion.
Earnings per share were -$0.23, beating consensus estimates near -$0.78 to -$0.81. GAAP net income from continuing operations rose to $621.2 million from a loss of $104.3 million a year earlier, reflecting revaluation gains including on ClickHouse.
Nebius secured up to 1.2 gigawatts of power and land for a new AI factory in Pennsylvania. The company also disclosed an up-to-$27 billion, five-year deal with Meta for computing capacity. Full-year 2026 guidance calls for revenue between $3.0 billion and $3.4 billion, annual recurring revenue (ARR) of $7 billion to $9 billion, and an adjusted EBITDA margin near 40%. The company noted risks related to market conditions, buildout execution, competition, and capital requirements.
Factory Buildout and Funding
On May 12, 2026, Nebius broke ground on a gigawatt-scale AI factory on roughly 400 acres in Independence, Missouri. State and company projections estimate about 1,200 construction jobs, 130 permanent positions, and $650 million in tax payments over 20 years.
The company expects contracted power to exceed 4 gigawatts by the end of 2026, with 800 megawatts to 1 gigawatt expected to be connected. Cash generated from operations in the quarter totaled $2.26 billion. Recent financings include $4.34 billion in convertible notes, $2.0 billion in Nvidia equity, and roughly $2.0 billion in prepayment warrants, providing liquidity to support the buildout and commercial commitments.
