Nebius Group, an AI cloud company, reported its first-quarter 2026 revenue of US$ 399 million, a whopping 684 percent increase from US$ 50.9 million in Q1 2025, as demand for AI infrastructure and cloud services continued to outpace available capacity. The AI cloud company also announced plans for a new AI factory in Pennsylvania, where it has secured land and power capacity for a deployment of 1.2 GW.
Adjusted EBITDA swung to a profit of US$ 129.5 million from a loss of US$ 53.7 million and a net income from continuing operations which reached US$ 621.2 million, compared with a loss of US$ 104.3 million in Q1 2025 while adjusted net loss widened 20 percent to US$ 100.3 million.
According to Nebius Group’s financial result Q1 2026 report, the company’s contracted power capacity now exceeds 3.5 GW, above its previous year-end target of 3 GW, and raised its guidance to over 4 GW by the end of 2026. Nebius’s owned capacity now represents more than 75 percent of its contracted power portfolio.
“We continue to see unprecedented demand across the market. Compute and cloud needs are vastly exceeding capacity as more industries embrace AI and companies move beyond experimentation to real-world applications. We are seeing this demand first hand, and are capturing it with our full-stack AI-native cloud from infrastructure and multi-tenant cloud through inference solutions and agentic platforms,” Arkady Volozh, founder and CEO, said in a quarterly letter to shareholders.
Volozh also added, “We are not simply responding to where the industry stands today; we have the knowledge and experience to build the infrastructure, tools, and capabilities for where it will be tomorrow.”
Nebius has broken ground on a gigawatt-scale site in Missouri and secured a second U.S. location in Pennsylvania for its expanding AI infrastructure operations.
The company also highlighted acquisitions aimed at expanding beyond infrastructure into inference and agentic AI workloads. Nebius announced deals for Tavily, Eigen AI and Clarifai, claiming that these transactions would strengthen its managed inference platform and orchestration capabilities.
Nebius’ core AI cloud business posted an adjusted EBITDA margin of 45 percent in the quarter, nearly double the prior quarter’s level, as the company continued to scale its cloud and compute operations.
We have been bringing to you news of Nebius’ billion dollar investments into AI infrastructure, and its various partnerships with tech giants. For example, recently Nebius and Meta signed a long-term agreement to supply AI infrastructure, with the total potential contract valued at approximately US$ 27 billion over five years. Meanwhile, NVIDIA and Nebius formed a broader partnership to invest US$ 2 billion to build large-scale cloud infrastructure aimed at the rapidly growing AI market. Their collaboration will extend across several parts of the AI technology stack, including data center architecture, computing hardware, software and operational systems.