Nebius Group Shares Plunge Nearly 17% Following Reduced 2026 Outlook

Nebius Group experienced a sharp share price decline in the stock market today, falling 16.84 percent to close at $128.64. The artificial intelligence cloud infrastructure and graphics processing unit capacity provider witnessed heavy trading volume, with 67.6 million shares changing hands, marking a surge of about 211 percent above its three-month average of 21.8 million shares. The drop came despite the company reporting a third-quarter revenue beat.

The downward pressure on Nebius followed the release of its quarterly earnings, which included a reduction in its 2026 revenue outlook. The forecast was adjusted to the low end of its original $3.0 billion to $3.4 billion range. Company officials pointed to delays in constructing new third-party owned data centers as the primary reason for the shift, moving a portion of expected revenue from this year into 2027.

Nebius Group shares fell 16.84% after the AI cloud provider trimmed its 2026 revenue outlook.

To address construction timeline risks moving forward, Nebius plans to focus a greater share of its artificial intelligence infrastructure expansion on owned and operated sites. According to the company, some of its proprietary facilities currently under development are actually running ahead of schedule.

Despite the negative market reaction and wider losses across the broader indexes—where the S&P 500 slipped 0.35 percent to 7,592 and the Nasdaq Composite fell 0.39 percent to 25,366—underlying business indicators remained robust. Customer demand for artificial intelligence compute capacity allowed Nebius to command higher prices and larger upfront payments. Prepayments on third-quarter agreements now cover the full cost of constructing new data center capacity, an increase from 50 percent to 60 percent in the previous quarter. Consequently, Nebius does not need to rely on debt markets for expansion funding and anticipates reaching pre-tax profitability as early as the fourth quarter. Similar neocloud peers also faced downward pressure, with CoreWeave dropping 6.86 percent and IREN declining 6.53 percent.

Why it matters

Investors are closely monitoring delivery schedules and revenue execution timelines for artificial intelligence infrastructure providers. The adjustment by Nebius highlights the real-world operational bottlenecks involved in third-party data center construction and how supply constraints can impact medium-term financial projections in the tech sector.