Nebius Group Reports 355% Revenue Growth in Q3 but Posts $119.6 Million Loss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: Nebius Group achieved a remarkable 355% year-over-year revenue growth in Q3 2025, indicating strong demand in the AI infrastructure market, although actual growth could have been higher if capacity constraints were not an issue.
- Major Contracts Signed: The company secured a $17.4 billion to $19.4 billion enterprise AI infrastructure agreement with Microsoft and a $3 billion contract with Meta, underscoring its critical position and future growth potential in the industry.
- Concerning Financials: Despite substantial revenue growth, Nebius reported a net loss of $119.6 million in Q3, highlighting financial pressures and challenges in achieving profitability during its expansion phase.
- Surging Capital Expenditures: Nebius raised its 2025 capex guidance from $2 billion to $5 billion and plans to fund this through increased debt, asset-backed financing, and issuing new shares, reflecting its heavy reliance on the anticipated demand for AI infrastructure.
NBIS
$90.03+Infinity%1D
Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NBIS is 164.20 USD with a low forecast of 130.00 USD and a high forecast of 211.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 93.230
Low
130.00
Averages
164.20
High
211.00
Current: 93.230
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
