Artificial intelligence (A.I.) firm Nebius (NBIS) has reported financial results for the year’s third quarter that beat Wall Street forecasts.
Nebius is known as a “neocloud” company. It builds A.I. data centres and rents them out to other companies.
The Netherlands-based company announced an earnings per share (EPS) loss of $0.13 U.S., which was better than the loss of $0.69 U.S. expected on Wall Street.
Revenue in the July through September period totaled $980.8 million U.S., topping the $907.5 million U.S. that had been anticipated by analysts. Sales were up 571% from a year earlier.
Nebius’ results come a day after fellow neocloud CoreWeave (CRWV) reported better-than-expected financial results, helping to reignite the trade in A.I. stocks.
Following CoreWeave’s results, Nebius’ stock jumped 15% higher on Nov. 11.
During the year’s third quarter, Nebius said it raised $5.75 billion U.S. in debt to fund its ongoing data center buildout around the world.
Looking ahead, Nebius said that it expects fiscal year 2026 revenue at the low end of its previous $3 billion U.S. to 3.4 billion U.S. range. Analysts expected revenue of $3.35 billion U.S.
The company also said that it expects capital expenditures this year of $27 billion U.S., higher than its previous capex guidance of $20 billion U.S. to $25 billion U.S.
The company is closely associated with chipmaker Nvidia (NVDA), which is helping to fund the data centers of both Nebius and CoreWeave.
Currently, Nvidia holds $329 million U.S. of Nebius shares.
Analysts say this creates some uncertainty for Nebius as Nvidia considers ousting CEO Jensen Huang following reports he had an affair with a woman who is alleged to be a Chinese spy.
Regardless, the latest earnings from Nebius and CoreWeave appear to have reassured investors that demand for A.I. data centres remains strong.
Prior to today (Nov. 12), NBIS stock had gained 64% over the last 12 months to trade at $154.69 U.S. per share.
