Nebius Group shares declined sharply in premarket trading on November 12 after the AI cloud company posted third-quarter revenue of $981 million, a 571% increase from the year-earlier period, while lowering expectations for 2026 sales and raising its capital expenditure forecast.

Revenue exceeded market expectations of approximately $908 million. AI cloud services accounted for $973.8 million, or about 99% of total sales, representing a 643% year-over-year rise. The company’s annualized revenue run rate reached $6.4 billion at the end of September, more than double the $3 billion level recorded in June.

Approximately $325 million of the quarterly revenue stemmed from nonrecurring arrangements involving the deployment of Nebius technology on third-party infrastructure. The company also reported $38.7 billion in remaining performance obligations, pointing to substantial contracted future demand.

Capacity Delays Force Guidance Adjustment

Management attributed the softer near-term outlook to delays in third-party computing capacity that had been expected to come online during 2026. That capacity is now anticipated to become available in the first half of 2027. As a result, Nebius now anticipates full-year 2026 revenue near the low end of its previous $3 billion to $3.4 billion range.

The company also deferred its target of surpassing $7 billion in annualized revenue run rate from December to February. Adjusted EBITDA for the third quarter reached $466 million, above the $357 million market consensus.

Capital Spending Plans Rise

Nebius increased its 2026 capital expenditure forecast to approximately $27 billion from the prior range of $20 billion to $25 billion. Looking further ahead, the company projects 2027 revenue between $12 billion and $13 billion, alongside capital spending of $40 billion to $45 billion.

Customer prepayments and asset-backed financing are expected to cover 75% to 85% of the 2027 capital outlays. Prepayments are projected to expand from about $10 billion in the current year to a range of $17 billion to $20 billion in 2027. Nvidia earlier invested $2 billion in the company to support its infrastructure buildout.

Broader Sector Pressure

The stock’s premarket decline, reported in a range of more than 9% to as much as 20.1% across trading sessions, occurred alongside weakness in other U.S.-listed AI cloud names. CoreWeave shares fell 13.6%, IREN declined 8.1%, and the Roundhill Neocloud ETF dropped 12.5%. The moves came against the backdrop of a leadership change at Nvidia, where Chief Financial Officer Colette Kress was named interim chief executive.

Despite the near-term adjustments, Nebius continues to point to strong demand for AI computing capacity as the primary driver of its longer-term growth trajectory.