Nebius shares soar 22% as AI demand powers revenue beat

Nebius Group exceeded second-quarter revenue forecasts on Wednesday, as a surge in demand for AI infrastructure and cloud services enabled the company to clinch larger contracts and raise prices for computing capacity. The Amsterdam-based AI infrastructure provider disclosed total revenue of $582.3 million for the quarter closing June, which surpassed the $572.75 million average estimate from analysts, according to data sourced from LSEG.

Revenue for Nebius' core AI cloud business, comprising approximately 98% of total group revenue, rose by more than 500%. The firm also reiterated its full-year 2026 outlook, stating that the demand for AI computing capacity continued to accelerate, allowing it to secure larger and more profitable customer contracts. Founder and CEO Arkady Volozh conveyed in a letter to shareholders, "Everything we set out to do this quarter, we did. In most cases, we did more."

During the quarter, Nebius sealed four significant AI cloud deals, each with an average total contract value surpassing $1 billion, with the total contract value surging nearly fourfold from the previous quarter. The firm, which offers access to Nvidia graphics processing units and AI cloud services, forms part of a growing cohort of neocloud companies that rent computing capacity to businesses developing and deploying AI applications.

Pricing intensified during the period due to the demand for next-generation AI chips and elevated rates for older-generation GPUs. Around 70% of deals signed in the period included customer prepayments, covering 50% to 60% of associated capital expenditure.

Nebius' shares have surged more than 130% this year as investors anticipate continued growth in demand for AI infrastructure.