Nebius Group N.V. Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Software | Market Cap: ₹57.5K Cr
- Sold out in Q1 and for several quarters, with demand significantly exceeding available capacity. - Nebius is experiencing strong revenue growth and margin expansion, with Q1 AI adjusted EBITDA margin nearly doubling to 45%, targeting around 40% margin for the full year 2026.
From Nebius Group N.V.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹226.34
Market Cap
₹57.5K Cr
P/E Ratio
80.6
Revenue Rank
Margin Rank
How does Nebius Group N.V. rank in Software?
Compare Nebius Group N.V. against every Software company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 1- →Sold out in Q1 and for several quarters, with demand significantly exceeding available capacity.
- →Majority of capacity coming online over next 12 months already under contract or earmarked for AI cloud customers.
- →Pipeline up 3.5x quarter-over-quarter in Q1 for AI cloud business, excluding strategic hyperscaler deals.
- →Strong revenue growth driven by capacity scaling and strong pricing; annualized run rate revenue at $1.9 billion, up over 50% quarter-over-quarter.
- →Raised 2026 CapEx guidance to $20-$25 billion to support expansion reflecting investments in 2027 capacity.
- →Back-end weighted capacity additions planned with meaningful ramp-up starting Q3, improving margins and revenue recognition in second half of 2026.
- →Customer diversification broadening with wins across sectors including fintech, healthcare, life sciences, manufacturing, and energy.
- →Expect capacity to unlock growth potential; currently seeing strong pricing and utilization without limitation on growth except capacity constraints.
📈 Profitability & Margins
Rank 3- →Nebius is experiencing strong revenue growth and margin expansion, with Q1 AI adjusted EBITDA margin nearly doubling to 45%, targeting around 40% margin for the full year 2026.
- →The company anticipates a nonlinear adjusted EBITDA margin progression in 2026 due to back-end weighted capacity deployment and investments, expecting margins to dip slightly in Q2 before returning to Q1 levels in Q3, then improving further in Q4.
- →Full-year 2026 guidance remains for annualized run rate revenue of $7 billion to $9 billion, group revenue between $3 billion and $3.4 billion, and group adjusted EBITDA margin around 40%.
- →Investments in go-to-market, engineering, and acquisitions are front-loaded, supporting longer-term profitable growth.
- →Capacity additions in 2026 are back-end weighted, ramping significantly in Q3 and Q4, setting up growth in 2027 with contracted demand already secured.
- →Strong pipeline growth (3.5x quarter-over-quarter in Q1) and expanding customer base support durable revenue conversion and margin expansion.
🏗️ Capital Expenditure Plans
Yes- →CapEx guidance for 2026 raised to $20 billion to $25 billion, driven by capacity growth and visibility into 2027 demand.
- →Significant expansion planned for 2027, with more capacity coming online in H2 2026 and key sites like Pennsylvania ramping up through 2030.
- →Over 90% of 2026 CapEx already secured by cash and contractual commitments.
- →Additional financing planned via asset-backed debt financing (leveraging contracts with Microsoft and Meta), corporate-level debt, and an at-the-market equity program.
- →NVIDIA made a $2 billion equity investment and committed to 5 GW capacity by 2030, marking a strategic multi-year partnership.
- →Focus on disciplined capital structure and careful investment in AI infrastructure aligns investments with revenue visibility and strong contracted demand pipeline.
- →Ongoing investments include hiring, acquisitions (Eigen AI, Clarifai), and software/platform development to enhance AI cloud capabilities.
💰 Fundraising & Capital Structure
Yes- →The company has a strong balance sheet with $9.3 billion cash and cash equivalents at quarter end.
- →They have raised $4.3 billion through a private offering of convertible senior notes in March with attractive coupons.
- →They expect to use asset-backed financing against contracts with Microsoft and Meta to raise capital on attractive terms.
- →Corporate level debt issuance is planned and financing options will be tapped in the near term.
- →An at-the-market equity program of up to 25 million Class A shares exists but has not been utilized yet; it is being regularly evaluated.
- →Financing approach is diversified and will focus on the long-term interests of the business.
- →Customer prepayments have increased, improving working capital and reducing external financing needs.
- →The incremental capacity expansion will be funded through these debt and equity options as needed.
📋 Order Book & Pipeline
Yes- →The company is sold out again in Q1, with demand significantly exceeding available capacity.
- →Capacity coming online over the next several quarters to 12 months is mostly under contract or earmarked for AI cloud customers.
- →Typically, 4 or more customers compete for every GPU brought online.
- →Strong contracted demand pipeline supports high orderbook confidence.
- →Meta has a $27 billion, 5-year contract split into $12 billion committed capacity starting 2027 and $15 billion additional capacity at company's discretion.
- →The $15 billion additional capacity can be allocated to Meta or sold to AI cloud customers, providing flexibility and financing advantages.
- →Pipeline for AI cloud business is up 3.5x quarter-over-quarter, excluding hyperscaler deals like Meta’s.
- →The company maintains strong win rates and increasing average contract values across diversified customers.
- →Prepayments from customers reached a new quarterly record, improving working capital.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
Frequently Asked Questions
What were Nebius Group N.V. Q2 FY26 results?
- Sold out in Q1 and for several quarters, with demand significantly exceeding available capacity. - Nebius is experiencing strong revenue growth and margin expansion, with Q1 AI adjusted EBITDA margin nearly doubling to 45%, targeting around 40% margin for the full year 2026.
What is Nebius Group N.V. share price analysis?
Nebius Group N.V. currently shows a strong growth signal based on ranking data. The stock trades at a P/E of 80.6 with a market cap of $57,467. Investors should review the full earnings analysis for detailed insights.
Is Nebius Group N.V. planning capital expenditure?
- CapEx guidance for 2026 raised to $20 billion to $25 billion, driven by capacity growth and visibility into 2027 demand.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.