Nebius Group announced a five‑year, $3 billion AI compute infrastructure contract with Meta Platforms, adding roughly $600 million in annual recurring revenue to the company’s pipeline. The deal follows a $17.4 billion Microsoft contract signed in September, which could grow to $19.4 billion as additional capacity is deployed.
In its Q3 2025 earnings, Nebius reported revenue of $146.1 million, down 355% year‑over‑year but still $8.6 million below the $155.11 million consensus estimate. The adjusted loss widened to $100.4 million from $39.7 million a year earlier, yet the company posted an adjusted loss of $0.40 per share, beating the consensus loss of $0.49 per share. The EPS beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin AI infrastructure contracts, offsetting the revenue shortfall caused by a temporary slowdown in legacy services.
Management raised its 2026 annualized run‑rate revenue guidance to $7 billion–$9 billion, up from the $5.5 billion–$7.5 billion range previously cited. The guidance reflects confidence in sustained demand from hyperscalers and the company’s ability to scale its GPU capacity, which will be expanded by 2.5 GW of contracted power by the end of 2026. Arkady Volozh noted that the Meta deal’s economics mirror those of the Microsoft agreement, reinforcing Nebius’s strategy of securing long‑term contracts with AI‑heavy clients.
The company’s core AI infrastructure segment saw a 400% year‑over‑year revenue increase, driven by high‑volume demand from data‑center operators and cloud service providers. However, the broader business faced headwinds from higher capital expenditures and a temporary dip in legacy service revenue, contributing to the widened net loss. Nebius’s adjusted EBITDA margin for the core segment expanded to nearly 19%, up from breakeven in Q2, indicating improving operational leverage as scale grows.
Nebius’s strategic focus on long‑term hyperscaler contracts and aggressive capacity expansion positions it well to capture the accelerating AI infrastructure market. While the Q3 revenue miss highlights the company’s ongoing investment cycle, the EPS beat and raised guidance signal management’s confidence in the company’s growth trajectory and its ability to convert high‑margin contracts into sustainable profitability over the next few years.
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