NBIS Stock Forecast & Price Target

Nebius Group has reported impressive total revenue of $146.1 million, reflecting a remarkable year-over-year growth of 237%, driven by robust performance in its core business. The company is anticipated to achieve an annualized revenue run-rate between $7 billion and $9 billion by the end of the calendar year 2026, bolstered by a $17 billion multiyear agreement with Microsoft which will enhance its backlog quality and operational efficiency. Furthermore, the firm demonstrates strong potential for double-digit returns on capital, significantly outpacing competitors in the sector, which underlines a positive financial outlook for Nebius Group.

The Nebius Group faces significant challenges, as indicated by its lowered revenue guidance for 2025 to approximately $525.0 million due to an inability to meet demand. This inability to fulfill orders highlights the company's struggle to scale profitably, particularly as it requires enterprise customers for long-term stability and faces difficulties in winning over traditional companies. Additionally, Nebius may encounter heightened regulatory scrutiny and geopolitical risks stemming from its origins as a carve-out of Yandex, which may further complicate its market position and growth potential.