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Nebius shares fell 10% after the company issued a cautious outlook for fiscal year 2026 and raised its capital spending guidance to $27 billion. The stock decline followed third-quarter revenue that exceeded estimates but masked broader financial strain.
Nebius reported third-quarter revenue of $980.8 million, surpassing analyst expectations by nearly $73 million, yet the company warned investors it would fall short of its own $3 billion to $3.4 billion 2026 revenue target. The firm also raised its capital expenditures guidance for 2026 to a record $27 billion—well above FactSet's projected $23.85 billion—and outlined an even steeper $40B–$45B capex range for 2027.
The stock plunge followed broader volatility in the neocloud sector, with competitors like CoreWeave and IREN seeing gains after reporting stronger results. Nebius' net loss of $37.5 million—down from a year-ago deficit of $119.6 million—highlighted persistent challenges despite its 571% YoY revenue growth.
Analysts warn the elevated capex guidance could strain cash flow and raise concerns about debt sustainability, especially as political hurdles delay data center projects in key markets. Meanwhile, Nebius' recent $5.75 billion debt financing raise may provide short-term support for expansion into new regions.
Nebius executives will discuss results during a conference call starting at 8 a.m. ET. CoreWeave and IREN's recent earnings reports are expected to influence market sentiment in the coming days.
Financial strain and competitive pressures threaten Nebius' growth trajectory as it navigates aggressive expansion amid political uncertainties.
Topics: Tech AI, Markets Finance, Cloud Computing, Corporate Earnings, Debt Financing, Competitive Strategy
#NebiusShares #CapexGuidance #NeocloudSector #MarketVolatility #CorporateEarnings
Source: CNBC
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