Nebius Group (NBIS) stock has surged 34.14%, closing at $259.20 as investors reacted to stronger second-quarter revenue, large AI cloud contracts, and an expanded power-capacity target. The rally added nearly $66 to NBIS stock in a single session and placed the shares well above their recent trading range.
The Amsterdam-based AI cloud provider reported $582.3 million in Q2 2026 revenue, up 454% from $105.1 million a year earlier. Adjusted EBITDA reached $236.2 million compared with a $21 million loss during the same quarter last year, while the company recorded a $190.4 million net loss from continuing operations.
Nebius Q2 Revenue Surges 454% as AI Cloud Demand Grows
Nebius delivered revenue above Wall Street expectations as demand for AI computing capacity continued to support its core cloud business. Analysts had expected quarterly revenue of roughly $573 million, while the company reported $582.3 million. Revenue from its main AI cloud operation increased nearly sixfold from a year earlier.
Profitability also improved on an adjusted basis. Adjusted EBITDA moved to $236.2 million from a $21 million loss a year ago, while adjusted net loss narrowed to $33.2 million from $91.5 million. Operating costs remained high at $758.2 million as Nebius continued investing in infrastructure, product development, and expansion.
The company still faces heavy spending requirements as it builds data centers and purchases AI hardware. Nebius spent about $5.66 billion on property, equipment, and intangible assets during the quarter, more than ten times the $510.6 million spent during Q2 2025.
Four Billion-Dollar AI Contracts Fuel NBIS Stock Rally
Nebius signed four AI cloud contracts during the quarter with an average value above $1 billion each. Total contract value nearly quadrupled, while the value of agreements signed with new customers increased more than ninefold as companies sought additional AI computing capacity.
Customer commitments have now exceeded $40 billion, while Nebius expects to receive more than $9 billion in customer prepayments during 2026. The company said contracts signed during the quarter with annual values above $20 million per megawatt should begin coming online during the fourth quarter.
CEO Arkady Volozh described the expansion as “contracted, profitable growth.” Management also said demand remains ahead of available supply and believes its planned 2027 capacity could be sold at current commercial terms, although future demand and pricing remain subject to market conditions.
Nebius Raises 2026 Power Target to 5 Gigawatts
Nebius raised its year-end contracted power target to 5 gigawatts from more than 4 gigawatts as the company expands its AI infrastructure network. Management also plans to deploy more than 1 gigawatt of additional capacity each year beginning in 2027.
The expansion requires large amounts of capital. Nebius held about $8.04 billion in cash and cash equivalents at the end of June, up from $3.68 billion at the end of 2025, providing funds for data centers, GPUs, and other infrastructure.
As of press time, Nebius stock closed at $259.20 after its 34.14% rally, putting the shares above the current average Wall Street price target. Based on forecasts from 11 analysts, the average NBIS stock price target stands near $241, about 7% below Wednesday’s closing price.
Source: TipRanks
Analyst forecasts range widely, with the NBIS lowest target at $144 and the highest at $286. The upper target would leave roughly 10% upside from the latest closing price, while the consensus forecast suggests much of the expected near-term gains may already be reflected in the stock after Wednesday’s surge.
