Nebius Group (NBIS) is a Zacks Rank #2 (Buy) that has a F for Value and a C for Growth. This company is an AI centric cloud infrastructure concern. The company has grown from 7 data centers to 16 in a little over a year and a half and has a few interesting private company investments as well. Let’s learn more about why this stock is the Bull of the Day.
Description
Nebius Group NV is a technology company that provides infrastructure and services to AI builders worldwide. It offers Nebius AI, an AI-centric cloud platform provides full-stack infrastructure, including large-scale GPU clusters, cloud services, and developer tools. The company also operates through specialized brands: Toloka AI, which partners in data for generative AI development; TripleTen, an edtech platform focused on re-skilling individuals for tech careers; and Avride, which develops autonomous driving technology. Nebius Group was founded by Elena Kolmanovskaya, Ilya Segalovich, Mikhail Fadeev, and Arkady Volozh in 1989 and is headquartered in Amsterdam, the Netherlands
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Nebius Group (NBIS) has reported two times when there was a Zacks Consensus Estimate. Two quarters ago the company posted a loss of 39 cents when a loss of 52 cents was expected. That 13 cent beat translates into a positive earnings surprise of 25%.
The company recently reported earnings of a loss of 69 cents when the Zacks Consensus Estimate was calling for a loss of 44 cents and that 25 cent miss translates to a negative earnings surprise of -56%.
The key ideas on the most recent earnings print is that the company is now at an annual revenue run rate of $1.25B and also gave some interesting CapEx guidance.
The company expects to spend between $16B - $20B this year, but at least 60% of that will be funded from operations. The consensus revenues estimate is at $8.7B, so we should expect that at least one of its private company investments might be spun out.
One of their investments is in AVRIDE, an autonomous vehicle service. I was in an AVRIDE uber when in Dallas the other month and having owned a Tesla for the last 6 years I can say there is a significant difference between the two. The AVRIDE system was more appropriately aggressive when it needed to be as compared to the Tesla autopilot. You can view a snip if my ride here ( https://www.instagram.com/p/DTrIHCKkczp/).
Earnings Estimates Revisions
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates for 2026 are moving higher for Nebius Group (NBIS).
The current fiscal year 2026 has increased from a loss of $3.06 to a loss of $2.12 over the last 60 days.
Fiscal 2027 has increased from a loss of $1.28 to a loss of $0.84 over the last 60 days.
Valuation
The valuation for Nebius Group (NBIS) is interesting given the growth prospects. 2026 is expected to see sales of $3.25B which would be good for 508% topline growth. That is not a typo, 508% revenue growth this year. Analysts have projected revenue of $8.7 for 2026 and that would be good for 167% growth. The price to book comes in at 5.5x and despite being a little more than value investors would be willing to pay, it shows how there can be growth and value at the same time… but don’t expect that to be the case for a long time. Price to sales is at 48x right now, but given the massive topline growth that metric will shrink considerably this year.
Private Company Investments
Given the large CapEx guidance I felt it was important to highlight the private company investments that NBIS has.
ClickHouse is an open source database platform focused on AI and has a valuation of around $15B. NBIS holds a 28% stake in the company.
AVRIDE is the autonomous driving technology company of which NBIS holds 83% of. A recent funding round placet the valuation just shy of $3B.
Toloka is a data labeling and AI development services platform and is controlled by NBIS. Estimates for the valuation range between $500M - $850M and recently raised $72M from the likes of Bezos Expeditions and the CTO of Shopify Mikahil Parakhin.
TripleTen is an edtech platform for re-skilling in technology careers and is control by NBIS. Estimates for the valuation of the company range wildly, with a low of around $50M to a high of $800M. the company grew revenue by 88% in 2025 with revenue of around $41M.
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Nebius Group N.V. (NBIS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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