Key Highlights

  • Nebius Group (NASDAQ:NBIS) reported second quarter 2026 revenue of USD 582.3 million, up 454% year on year, with annualized run-rate revenue of USD 3.0 billion at the end of June, up 598%.
  • Capital expenditure was about USD 5.7 billion in the second quarter, mostly for GPUs and data centers, against about USD 8 billion of cash and USD 2.3 billion of operating cash flow.
  • Nvidia put USD 2 billion of equity into Nebius Group (NASDAQ:NBIS) in the first quarter of 2026, part of USD 6.3 billion raised that quarter, including USD 4.3 billion of convertible securities.
  • A five-year Meta agreement worth up to USD 27 billion, split between a USD 12 billion compute purchase and a USD 15 billion capacity arrangement, starts delivering capacity in early 2027.

The Quarter in Numbers

Nebius Group (NASDAQ:NBIS) reported second quarter 2026 results on August 12, 2026. Group revenue was USD 582.3 million, up 454% from a year earlier and 46% from the first quarter, and run-rate revenue reached USD 3.0 billion. The company reaffirmed 2026 guidance of USD 3.0 billion to USD 3.4 billion of revenue and USD 7 billion to USD 9 billion of year-end run-rate revenue. Capital expenditure of about USD 5.7 billion was roughly ten times quarterly revenue, simple arithmetic on two reported figures. The company says every capacity tranche under its Microsoft (NASDAQ:MSFT) contract has been delivered, including two in the month before the report. That is a useful sign that contracted capacity is turning into billed revenue, though the base is still small beside spending.

How It Is Funded

Funding comes from several layers. Nvidia (NASDAQ:NVDA) bought USD 2 billion of equity in the first quarter, which also made Nvidia a shareholder in a company that buys its chips. Nebius sold 12.7 million Class A shares through its at-the-market program for about USD 2.8 billion gross through June 30, which dilutes existing holders. In July it closed a USD 775 million asset-backed facility at SOFR plus 2.50%. Customer prepayments of more than USD 9 billion are expected in 2026, though one report said they cover only about 60% of second quarter spending, a figure not matched to the filing. The mix of equity, convertibles and secured debt shows how much outside capital the build needs.

Risks and What to Watch

Capacity for Meta Platforms (NASDAQ:META) is on track for early 2027, so a large revenue step depends on timely power and chips. The company says it has received its first Nvidia Vera Rubin systems and targets 5 gigawatts of contracted power by the end of 2026. Nebius Group (NASDAQ:NBIS) fell alongside CoreWeave in mid-October, showing sector debt sensitivity. Delays, falling GPU prices or weaker prepayments would pressure cash. Customers are concentrated among a few very large buyers, so one contract change could move results sharply. Nvidia, as supplier and shareholder, sits on both sides. The next report is expected in November 2026, with no confirmed date.

Where Things Stand

The answer is that Nebius Group (NASDAQ:NBIS) is building ahead of revenue on purpose. Spending of USD 5.7 billion in one quarter is supported by contracts, prepayments and new capital, but it also relies on equity and debt markets staying open. The Nvidia stake and Meta and Microsoft contracts reduce demand risk, though not funding risk. Watch the November results for capex, prepayments and cash.