Nebius Revenue Growth Quadruples Amid AI Computing Boom
Nebius's revenue growth has been staggering, reaching $399 million in Q1 2026, up 684% from the previous year. The company's AI cloud unit produced $389.7 million in Q1, a massive 841% increase over the same period last year. As of Q2, total revenue had reached $582.3 million, with AI cloud sales rising nearly sixfold.
Nebius is expected to quadruple its revenue this year, reaching $3 billion to $3.4 billion. This growth is largely driven by the company's focus on specialized AI native clouds and its ability to offer better performance and lower total cost of ownership compared to general-purpose clouds like Amazon Web Services or Microsoft's Azure.
The company has signed multibillion-dollar contracts with major players, including at least four core infrastructure deals averaging over $1 billion each. Nebius has also rolled out an infrastructure partnership model where third-party operators finance and own AI data centers, while the company provides its architecture, hardware design, and software stack.
However, analysts are still debating whether Nebius's valuation is justified. The stock trades at a lofty 57 times sales and doesn't earn a profit. Some worry that as GPU capacity from Nvidia, hyperscalers, and rivals grows, Nebius will lose some pricing power, forcing it to compete more on service and economics.