NBIS Q3 Earnings Beat Estimates on AI Cloud Growth, Asset-Light Gains Zacks Equity Research Fri, November 13, 2026 at 6:12 AM EST 6 min read NBIS -2.59% AMZN +1.14% TTD +0.52% CRWV -1.13% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Nebius Group N.V. NBIS reported adjusted earnings of 30 cents per share for the third quarter of 2026 against an adjusted loss of approximately 42 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of a loss of 61 cents per share.
Revenues surged 571% year over year to $980.8 million, beating the Zacks Consensus Estimate of $917 million by 6.98%. Growth was driven by expanding AI cloud capacity and revenues from asset-light partnerships. Annualized run-rate revenues reached $6.4 billion, up 1,062% year over year.
Nebius AI Cloud revenues totaled $973.8 million, increasing 643% year over year. The business accounted for approximately 99% of consolidated revenues, reflecting strong demand for AI computing infrastructure.
During the quarter, Nebius recognized roughly $325 million in nonrecurring revenues from the initial phase of its asset-light model. Under this arrangement, partners fund computing capacity while Nebius provides its architecture and cloud platform. Revenues are recognized when the platform is enabled and when capacity becomes operational.
Remaining performance obligations reached $38.7 billion at September-end, up 3% sequentially. Meanwhile, customers committed more than $12 billion in total contract value since the beginning of the third quarter, supported by larger agreements and stronger pricing.
Customer contract terms improved significantly during the reported quarter. Annual contract value per megawatt exceeded $25 million compared with $20-$25 million in the preceding quarter. Average GPU-hour pricing increased more than 20% sequentially.
More than 90% of the contract value signed during the quarter included customer prepayments. These prepayments covered more than 100% of associated capital expenditures compared with 50-60% in the second quarter. The average payback period shortened to one year and seven months from one year and 10 months.
The company also expanded its enterprise customer base through multiyear agreements with Databricks, Datadog and Snowflake. Its managed inference platform, Token Factory, approached a multi-hundred-million-dollar annual revenue run rate, with contract value growing 17 times sequentially.
Group adjusted EBITDA reached $465.8 million against an adjusted EBITDA loss of $5.2 million a year earlier. Adjusted EBITDA margin improved to 47.5% from 40.6% in the second quarter.
The Nebius AI Cloud business generated an adjusted EBITDA margin of 53.2%, improving from 50% a quarter ago. Higher capacity utilization, stronger contract pricing and revenues from asset-light partnerships supported profitability.
Nebius Group N.V. price-consensus-eps-surprise-chart | Nebius Group N.V. Quote
Total operating costs and expenses increased 237% year over year to $930.4 million. Cost of revenues climbed 412% to $219.7 million, while product development expenses increased 164% to $118.6 million. Selling, general and administrative expenses rose 165% to $237.4 million.
Depreciation and amortization expenses increased 258% to $354.7 million, reflecting continued investments in GPU infrastructure. Despite higher expenses, the company generated operating income of $50.4 million versus an operating loss of $130.2 million a year ago.
Nebius ended September 2026 with cash and cash equivalents of $7.43 billion. The company reported a net loss from continuing operations of $37.5 million, narrowing from $119.6 million in the prior-year quarter.
Net cash used in operating activities was $273 million compared with $80.6 million a year earlier. Capital expenditures totaled approximately $7.3 billion, primarily reflecting server and networking equipment purchases and data center expansion.
During the quarter, the company completed a $5.75 billion convertible senior notes offering and secured a $775 million asset-backed financing facility. It also raised approximately $1 billion in net proceeds through its at-the-market equity offering.
Nebius now expects 2026 revenues between $3 billion and $3.2 billion compared with its previous guidance of $3 billion to $3.4 billion. The downward revision reflects delays in bringing third-party data center capacity online, particularly in New Jersey.
The company maintained its full-year adjusted EBITDA margin expectation of approximately 40%. However, projected capital expenditures increased to around $27 billion from the previous $20-$25 billion range.
For 2027, management expects revenues of $12-$13 billion, representing approximately fourfold growth. Capital expenditures are projected at $40-$45 billion, with 75-85% expected to be financed through customer prepayments and asset-backed financing against existing investment-grade contracts.
Nebius anticipates reaching pretax breakeven in the fourth quarter of 2027. Management expects customer prepayments of $17-$20 billion next year, supporting continued AI infrastructure expansion and the transition toward company-owned data centers.
NBIS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
CoreWeave, Inc. CRWV reported a third-quarter 2026 loss of $1.27 per share, narrower than the Zacks Consensus Estimate of a loss of $1.45. However, the loss widened from 22 cents per share in the year-ago quarter.
Revenues surged 168% year over year to $3.66 billion, beating the consensus mark of $3.49 billion by 4.84%. Strong AI infrastructure demand, favorable pricing and accelerated capacity deployments drove growth. Revenue backlog reached $132.5 billion, up 138% year over year.
The Trade Desk, Inc. TTD reported third-quarter 2026 adjusted earnings of 33 cents per share, down 26.7% year over year but above the Zacks Consensus Estimate of 26 cents.
Revenues declined 0.5% year over year to $736 million but beat the consensus estimate of $651 million by 13.1%. The better-than-expected performance was driven by strength in medical health advertising, political spending related to the U.S. midterm elections and a nonrecurring contribution from a strategic partner.
Amazon AMZN reported third-quarter 2026 net income of $1.89 per share, down 3% from $1.95 per share in the third quarter of 2025. Net sales of $201.9 billion rose 12% year over year but missed the consensus mark by 0.08%. Excluding a $0.9 billion unfavorable foreign exchange impact, net sales grew 13%.
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