Nebius Stock Crashes 15% as Weak 2026 Outlook and $45 Billion Capex Plan Collide With Jensen Huang Resignation

Nebius Group N.V. shares plunged nearly 15% on Thursday. The AI cloud provider reported strong quarterly revenue but issued a disappointing outlook and a much larger spending plan, on the same day Nvidia CEO Jensen Huang resigned.

Nebius stock traded at $131.67 in morning trading, down $23.02, or 14.88%. The stock had fallen as much as 22% before the opening bell. Volume topped 27 million shares early in the session, above the three-month average of about 20 million.

Nebius' market value fell to about $33.5 billion.

Revenue surges

Nebius reported third-quarter revenue of $980.8 million, up 571% from $146.1 million a year earlier and above analyst estimates of about $908 million.

Adjusted EBITDA swung to a profit of $465.8 million from a loss of $5.2 million a year earlier, and the adjusted EBITDA margin widened to 47.5% from 40.6% in the second quarter. Adjusted net income reached $90.9 million.

On a reported basis, Nebius posted a net loss of $37.5 million, or 13 cents per share.

The company reported remaining performance obligations of $38.7 billion, reflecting contracted future business. It also signed its first multiyear agreements with major enterprise platforms, including Databricks, Datadog, Palantir and Snowflake.

Outlook disappoints

Investors focused on the guidance. CEO Arkady Volozh said in a shareholder letter that Nebius expects 2026 revenue at the low end of its $3 billion to $3.4 billion range. Analysts polled by FactSet had expected $3.35 billion.

Delayed computing capacity pushed some growth into 2027. Nebius expects 2027 revenue of $12 billion to $13 billion.

Spending soars

Nebius spent about $7.3 billion on capital expenditures in the third quarter, up about 664% from a year earlier. It raised its full-year 2026 capex forecast to about $27 billion.

The company projected 2027 capex of $40 billion to $45 billion, far above the FactSet estimate of $28.77 billion.

Nebius said it raised $5.75 billion in debt financing during the quarter and ended it with $7.4 billion in cash.

Huang resignation adds pressure

The results landed on the same morning Nvidia announced Huang's resignation. Nvidia, which supplies Nebius with GPUs, invested $2 billion in the company in March.

Neocloud stocks fell across the board, with CoreWeave and IREN also declining. TechCrunch reported Nebius was down about 16% after the announcement.

Gains erased

Thursday's drop wiped out Wednesday's 15.4% rally to $154.69, which followed strong results from rival CoreWeave.

Short-selling activity had increased ahead of the report. FINRA data showed the share of Nebius volume tied to short sales rose from 0.346 on Nov. 9 to 0.544 on Nov. 11.

Despite the selloff, Nebius shares are still up about 75% over the past year. Analysts have a Moderate Buy consensus rating on the stock, with an average price target of $296.73, according to TipRanks.

Nebius, based in Amsterdam, was built from the international assets of Russian technology company Yandex.

This article is for informational purposes only and does not constitute investment advice.