Nebius Group (NBIS) saw its shares jump 15.72 percent on Wednesday after reporting a massive 684 percent year-over-year revenue increase for the first quarter of 2026.

The Amsterdam-based neocloud operator posted revenue of 399 million dollars, up from 50.9 million dollars in the same period last year.

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AI Cloud Division Leads Growth

The company's AI Cloud division was the primary growth driver, with revenue surging 841 percent to reach 390 million dollars.

Nebius has strengthened its position as a full-stack neocloud operator following the strong financial performance, according to Detik Finance.

The company, which spun out from Yandex's international business, operates cloud infrastructure specializing in high-density GPU data centers and large-scale computing for enterprise and hyperscale clients.

Key Financial Highlights

For the period ending March 31, 2026, Nebius reported an earnings per share (EPS) of negative 0.23 dollars, beating the consensus estimate of negative 0.81 dollars by 71.60 percent.

Adjusted EBITDA turned into a 129.5 million dollar profit, compared to a 53.7 million dollar loss in the prior year.

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Net income from continuing operations also shifted to a 621.2 million dollar profit, reversing a 104.3 million dollar loss from the same period last year.

Despite the positive headline figures, the adjusted net loss widened to 100.3 million dollars from 83.6 million dollars due to aggressive expansion spending.

Nebius trades at 16.36 times sales, compared to a sector median of 3.33 times, and 9.16 times book value against a sector median of 4.45 times.

The company currently holds a market valuation of approximately 55.65 billion dollars, reflecting significant growth expectations from the market.

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Nebius stock is up 138.17 percent year-to-date and 434.2 percent over the past 52 weeks.

Strategic Agreements and Expansion Plans

Nebius supports its expansion through significant commercial milestones, including a multi-year AI infrastructure agreement with Meta Platforms valued at nearly 27 billion dollars.

The company also secured a 1.2 GW power agreement to back a potential 20 billion dollar expansion into the United States, alongside approvals for its initial gigawatt-scale AI factory.

Nebius has adjusted its 2026 capital expenditure outlook upward to a range of 20 billion to 25 billion dollars, compared to its earlier projection of 16 billion to 20 billion dollars.

A portion of this updated budget is dedicated to building 2027 capacity, which is expected to start generating operational revenue during the first half of next year.

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Following the earnings report, Citi raised its price target for Nebius to a street-high 287 dollars from 169 dollars, while maintaining a buy rating on the stock.