Key Highlights

  • Shares trading down 3.91% pre-market to $249.07, giving back a portion of Wednesday's extraordinary 34.14% surge
  • Q2 2026 Revenue of $582.3 million beat the $567.9 million estimate, up 454% to 514% year-over-year
  • Adjusted EPS loss of $0.67 was roughly in line with the $0.68 loss estimate
  • AI cloud ARR hit roughly $3 billion, up 598% year-over-year and 56% quarter-over-quarter
  • Reaffirmed full-year guidance of $7 billion to $9 billion in annualized run-rate revenue
  • Pullback reflects lingering caution from DA Davidson, which cut its price target to $175

Shares Pull Back After Wednesday's Blowout Rally

Nebius Group (NASDAQ:NBIS) shares are pulling back in pre-market trading Thursday, down 3.91% to $249.07, giving back a portion of Wednesday's extraordinary 34.14% surge that followed blowout second-quarter 2026 results. Revenue jumped 454% to 514% year-over-year to $582.3 million, beating the $567.9 million estimate, while adjusted EPS of negative $0.67 came in roughly in line with the negative $0.68 estimate. AI cloud ARR hit roughly $3 billion, up 598% year-over-year and 56% quarter-over-quarter.

Nebius Group N.V., headquartered in Amsterdam, is a technology company building full-stack infrastructure to serve the global artificial intelligence industry. Its core business, Nebius, is an AI-native cloud platform offering large-scale GPU compute clusters, cloud services, and developer tools for Training and running demanding AI workloads, supported by a strategic Partnership with Nvidia. The group's broader portfolio includes Toloka AI, a data solutions provider for generative AI development, TripleTen, an edtech platform for tech re-skilling, and Avride, which develops autonomous driving and delivery robotics technology.

Guidance Reaffirmed Despite the Pullback

Management reaffirmed full-year guidance of $7 billion to $9 billion in annualized run-rate revenue and reiterated plans to add up to 5 gigawatts of power capacity, calling AI capacity Demand strong enough that 2027 Supply could sell out. The company closed four landmark billion-dollar-plus deals in the second quarter, including with Reflection, Cohere, a scale-up Neo lab, and a large U.S. quant trading firm, at yields of $20-25 million per megawatt with no upfront payments covering 50-60% of associated capital expenditures.

Despite the Earnings beat and bullish long-term guidance, investors appear to be booking profits after the stock's massive one-day rally, with the pullback also reflecting lingering caution from analysts, as DA Davidson cut its price target to $175 citing delays at Nebius' Vineland, New Jersey Data Center project, while the stock's current price near $249 to $259 sits well above the roughly $216 average analyst consensus target, underscoring a valuation debate even as bulls point to accelerating Cash Flow and a tightening AI infrastructure supply backdrop.

Conclusion

Nebius Group's 3.91% pre-market pullback reflects investors booking profits after Wednesday's extraordinary 34.14% rally, even as the company posted a substantial revenue beat and reaffirmed ambitious long-term capacity and revenue guidance. With a valuation debate emerging between bulls citing accelerating cash flow and a tightening AI infrastructure supply backdrop against a price target cut tied to data-center delays, the stock's next moves will likely hinge on execution against its aggressive Capital Expenditure plan.