Rising demand for AI computing capacity has helped Nebius exceed quarterly revenue expectations, secure larger customer contracts and raise prices. Shares of the AI cloud company climbed more than 20% following the results.
Revenue from Nebius’ core AI cloud business increased nearly 6 times in the 2nd quarter, helping total revenue reach $582.3 million for the quarter ended June. The figure was above the $572.75 million estimate, according to LSEG data.
CEO Arkady Volozh said Nebius was turning strong demand into “contracted, profitable growth”.
The Nvidia-powered AI cloud provider signed 4 AI cloud contracts averaging more than $1 billion each during the quarter. Its total contract value nearly quadrupled, while contract values from new customers increased more than 9 times.
Volozh said demand for AI computing remains well above available supply despite growing competition from companies such as xAI. He added that Nebius could sell all of its planned 2027 capacity under current terms.
Emarketer analyst Jacob Bourne said demand for AI cloud capacity continues to rise despite increasing competition, but noted, “the bigger question is how diversified and durable that demand proves to be beyond the AI industry itself.”
Nebius spent about $5.7 billion on capital expenditure during the quarter, exceeding analysts’ expectations of $4.7 billion, according to Visible Alpha. The company continues to invest heavily in GPUs and data-center expansion.
AI cloud contracts signed during the quarter with annual contract values above $20 million per megawatt are expected to become operational in late 4th quarter, according to the company.
Nebius has raised its contracted power target for 2026 to 5 gigawatts from more than 4 gigawatts previously. From 2027, it expects to deploy more than 1 GW of capacity annually, equivalent to the electricity consumption of roughly 750,000 US homes.
The company expects more than $9 billion in customer prepayments this year and currently has more than $40 billion in customer commitments.
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