Nebius Group gave Wall Street the type of quarter that keeps the artificial intelligence infrastructure trade alive, even as investors become more selective about which companies can actually turn AI demand into revenue.
The Amsterdam-based AI cloud company reported first-quarter revenue of $399 million, up 684% from $50.9 million in the same period last year
Adjusted EBITDA reached $129.5 million, compared with an adjusted EBITDA loss of $53.7 million a year earlier, according to Nebius’ first-quarter results. The growth was driven by the company’s core Nebius AI cloud business, stated in the 2026 Q1 letter to shareholders, which generated $389.7 million in revenue during the quarter, up 841% from the year-ago period. That business accounted for about 98% of total group revenue, while annualized run-rate revenue reached $1.92 billion at the end of March, up 674% year over year and 54% from the end of December.
Morgan Stanley lifts its target after earnings In the Morgan Stanley note given to TheStreet, analysts raised their Nebius price target to $144 from $126, while keeping an Equal-weight rating on the stock. The move reflected stronger execution, better pricing, faster capacity progress, and demand that continues to run ahead of available supply. The updated target still tells a more cautious story than the headline increase suggests.