Nebius Revenue Surges as Wall Street Tests the Cost of AI Growth

Nebius delivered a sharp jump in quarterly revenue and an ambitious outlook for 2027. Its spending bill shows why investors are looking beyond sales growth when assessing the AI infrastructure boom.

Nebius is growing quickly. Funding that growth remains a major part of the story.

The Nasdaq-listed AI cloud company reported third-quarter revenue of $980.8 million, up 571% from a year earlier. Adjusted EBITDA reached $465.8 million, compared with a $5.2 million loss in the same quarter last year.

Its net loss from continuing operations narrowed to $37.5 million from $119.6 million.

The revenue figure beat analysts’ expectations of $907.5 million. Nebius also projected $12 billion to $13 billion in revenue for 2027, although the midpoint of its $3 billion to $3.4 billion forecast for 2026 fell below market expectations.

That combination gives investors plenty to examine: a strong reported quarter, a huge growth target and a nearer-term outlook that leaves room for debate.

The spending figures are equally significant.

Nebius reported $7.3 billion in purchases of property, equipment and intangible assets during the quarter. Continuing operations used $273 million in operating cash over the same period.

Capital expenditure builds assets intended to generate revenue over several years. Nevertheless, the cash must be available before those assets deliver their full return.

Adjusted EBITDA also excludes costs that remain relevant to shareholders, making it useful alongside cash flow and reported earnings rather than as a complete measure of financial health.

For the wider AI sector, the results show why the investment debate is becoming more demanding. Fast sales growth can demonstrate commercial momentum, while the cost of supplying that growth determines how much value ultimately reaches shareholders.

Investor Take: Nebius has delivered substantial revenue growth, but execution against its 2027 target now becomes crucial. Watch cash generation, infrastructure spending and the gap between adjusted profitability and reported earnings. The strongest long-term case requires growth that can increasingly support its own funding needs.