Nebius Group's Next Earnings Report on Aug. 12 Could Send the Stock Soaring. Here's Why.
Nebius Group's Next Earnings Report on Aug. 12 Could Send the Stock Soaring. Here's Why.
Danny Vena, CPA, The Motley FoolMon, August 10, 2026 at 5:54 PM UTC
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Key Points -
Nebius Group is scheduled to report its Q2 financial results before the market open on Wednesday.
The company has been generating triple-digit growth and will likely deliver more of the same.
The stock isn't cheap, but Nebius's heady growth rate justifies a premium.
10 stocks we like better than Nebius Group ›
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Neocloud provider Nebius Group(NASDAQ:NBIS) has been one of the standout performers over the preceding 12 months, though those gains have been accompanied by significant volatility. The stock has had a blistering run, up 173% over the past year (as I write this), but there's more to the story. Nebius is also down 35% from its peak, as investors have taken a step back to survey the artificial intelligence (AI) landscape.
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The company is scheduled to release its second-quarter results before the market open on Wednesday, Aug. 12, and Nebius has a lot riding on that report. Several AI-related companies have soared after delivering better-than-expected financial results, and Nebius could be next in line.
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I've looked at clouds from both sides now
Cloud computing has become a business staple over the past couple of decades, providing companies with online access to data processing, software applications, and data storage. The flexibility, scalability, and integrated security have made cloud computing extremely attractive to users.
Furthermore, most AI processing takes place in the cloud, providing businesses with easy access to this groundbreaking technology. To meet the unprecedented demand, neocloud operators help bridge the gap by stockpiling graphics processing units (GPUs) and the related infrastructure, providing customers with high-performance computing, commonly called GPU-as-a-service (GPUaaS).
Blistering growth
In the first quarter, Nebius generated revenue of $399 million, up an eye-popping 684% year over year, albeit from a small base. Net operating income swung from a $104 million loss to a profit of $621 million, resulting in diluted earnings per share (EPS) of $2.11.
Yet the company's current financial results are only part of the story. Nebius increased its AI-compute capacity guidance to 4 gigawatts for 2026, up from just 3 gigawatts it forecast in February. The company also announced a $27 billion, five-year deal with Meta Platforms to provide the company with compute capacity, based on Nebius's first large-scale deployment of Nvidia's Vera Rubin chips.
The agreement came on the heels of a revelation by Nvidia that it had invested $2 billion in Nebius to help the company accelerate the deployment of its next-generation neocloud operations. At the time, Nvidia cited the company’s "unique depth of engineering expertise across the full AI technology stack." The investment will help Nebius deploy more than 5 gigawatts of compute over the coming five years. This increases the available compute capacity that Nebius can then sell to its customers.
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Since then, Nebius reached an agreement with Bloom Energy to provide 328 megawatts of electricity, powered by the company's non-polluting fuel cells, to power Nebius's data centers. This will reduce the demands on the local electric grid, helping to make Nebius more self-sufficient.
What the future holds
Nebius Group's full-year guidance calls for revenue in a range of $3 billion to $3.4 billion, driving its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to roughly 40%. To give that forecast context, in 2025, Nebius delivered full-year revenue of $530 million and an adjusted EBITDA loss of $65 million. That suggests year-over-year growth of between 466% and 542% for 2026. Given the company's track record of growth, that could be conservative, as management merely reiterated its guidance, rather than increasing it.
To be clear, Nebius stock isn't cheap, selling for nearly 63 times earnings, but if the company can sustain its triple-digit growth, that price could end up being a bargain. We'll know more when the company reports on Wednesday morning.
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Danny Vena, CPA has positions in Meta Platforms and Nvidia. The Motley Fool has positions in and recommends Bloom Energy, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
Source: “AOL Money”
