Nebius Stock: From Losses to Profitability on AI Infrastructure Boom

Nebius reports $529.8M revenue and a swing to profit, backed by $20B+ in customer contracts. It plans to expand power capacity to 1,000 MW by 2026.

The global race for artificial intelligence computing power has a clear winner in Nebius. The cloud and AI infrastructure provider is not just growing; it's accelerating at a breathtaking pace, as evidenced by a staggering 479% revenue surge in its latest fiscal year. This explosive growth is fueled by strategic geographic expansion and secured by billions in pre-committed customer contracts.

Financial Turnaround and Ambitious Targets

The most compelling chapter in Nebius's recent story is its dramatic financial pivot. For the fiscal year 2025, the company reported revenue of $529.8 million, a near-quintupling from the prior period. The fourth quarter alone contributed $227.7 million.

Crucially, this top-line explosion has translated into bottom-line profitability—a key milestone for fundamental valuation. Nebius posted net income from continuing operations of $29.0 million, a remarkable reversal from a loss of $352.0 million the year before. Operating cash flow also swung decisively into positive territory, reaching $401.9 million.

Bolstered by this performance, management has set concrete medium-term goals. The company aims to expand its active power capacity from 170 megawatts to 1,000 megawatts by the end of 2026. On this expanded infrastructure base, Nebius is targeting an annualized revenue run rate between $7 and $9 billion.

Secured Demand Driving Infrastructure Build-Out

This aggressive capacity expansion is not speculative. It is backed by a formidable order book currently valued at over $20 billion. This backlog is anchored by multi-billion dollar agreements with technology titans, including Microsoft and Meta Platforms, ensuring high utilization for new data centers before they are even built.

To meet this demand, Nebius is executing a massive infrastructure rollout, particularly across the United States. Recent approvals include a 1.2-gigawatt campus in Missouri, supported by regional incentive programs. Construction is underway on a 300-megawatt facility in New Jersey, with additional sites planned in Minnesota, Oklahoma, and Alabama. The company's roadmap calls for operating 16 data centers worldwide by the close of 2026.

Strategic Leadership for Global Expansion

Parallel to its physical build-out, Nebius is strategically positioning its leadership to capture growth in key markets. The company is making a concerted push into the Asia-Pacific and Japan region, a move led by industry veteran John Haarer, formerly of Cloudflare. This expansion is strategically timed, as data center capacity in the region is forecast to triple to 142.6 gigawatts by 2029.

Simultaneously, the company is fortifying its North American operations. Dan Lawrence has been appointed to lead the U.S. market, with a mandate to deepen commercial activities across all enterprise segments.

Together, these elements—a proven path to profitability, secured long-term demand, rapid infrastructure deployment, and targeted leadership—chart the course of Nebius's rapid ascent in the high-stakes arena of AI cloud infrastructure.