Nebius (NBIS) Q1 2026 earnings summary

Executive summary

• Achieved record revenue growth and margin expansion in Q1 2026, with revenue surging 684% year-over-year to $399 million, driven by strong demand and capacity scaling.

• Net income from continuing operations reached $621.2 million, reversing a loss of $104.3 million in Q1 2025.

• Adjusted EBITDA improved to $130 million (13% margin), up from $15 million last quarter and a $54 million loss a year ago.

• Raised CapEx guidance to $20–$25 billion for 2026 to support accelerated infrastructure build-out and future demand.

• Secured major contracts, including a $27 billion five-year deal with Meta, and expanded partnerships with NVIDIA and Microsoft.

Financial highlights

• Group revenue grew 684% year-over-year to $399 million in Q1, up 75% sequentially.

• Nebius AI business revenue rose 841% year-over-year to $390 million, 82% quarter-over-quarter, representing 98% of group revenue.

• Group-adjusted EBITDA reached $130 million (13% margin), up from $15 million last quarter and a $54 million loss a year ago.

• Net income of $621 million, benefiting from a non-cash valuation adjustment related to ClickHouse.

• Cash and cash equivalents stood at $9.3 billion at quarter end, up from $3.68 billion at year-end.

Outlook and guidance

• Reiterated 2026 guidance: annualized run rate revenue of $7–$9 billion, group revenue of $3–$3.4 billion, and group-adjusted EBITDA margin around 40%.

• CapEx guidance raised to $20–$25 billion for 2026, reflecting investments for 2027 capacity.

• Expect nonlinear quarterly margin progression due to back-end weighted capacity additions; margins to dip in Q2, recover in Q3, and rise further in Q4.

• Forward-looking statements highlight plans for capacity buildout, capital expenditure, and market expansion.

• Risks include financing, supply chain, competition, and technological change.