Shares of Nebius fell 16% in trading as the publicly traded neocloud operator released disappointing guidance for the remainder of the year and raised its capital spending outlook substantially. The company expects fiscal year 2026 revenue at the lower end of its previously stated $3 billion to $3.4 billion range, below the $3.37 billion consensus estimate from LSEG-surveyed analysts.
Capital expenditure guidance proved particularly significant. Nebius raised its FY2026 capex outlook to $27 billion from a prior range of $20 billion to $25 billion, exceeding the FactSet expectation of $23.85 billion. The company also provided initial 2027 guidance projecting capital expenditures of $40 billion to $45 billion, substantially higher than the FactSet consensus of $28.77 billion. Management attributed the conservative approach to revenue growth projections, with 2027 revenue expected in the $12 billion to $13 billion range against a $11.98 billion consensus.
The selloff occurred despite broad industry strength earlier in the week. Neocloud competitors experienced significant gains Wednesday, with CoreWeave climbing nearly 25%, Nebius itself rising 15%, Applied Digital advancing over 7%, and IREN gaining nearly 6%. However, each stock declined in premarket trading following the Nebius report.
During the third quarter, Nebius reported revenue growth of 571% but posted a net loss of $37.5 million, or 13 cents per share, compared with a $119.6 million loss, or 50 cents per share, in the prior year period. The company raised $5.75 billion in debt financing during the quarter.
The stock movement also reflected broader market concerns about the neocloud sector’s sustainability and financing challenges. Recent political developments, including ballot initiatives restricting data center development and Congressional election results, added to market uncertainty as the company competes to expand its data center footprint.
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