Nebius Stock Drops 10% on Higher Capital Spending and Soft Outlook

Nebius shares sank 10% on Thursday after the company reported its third-quarter financial results. Although its revenue jumped 571% and beat analyst estimates, the company issued a weak outlook and projected significantly higher capital expenditures for future fiscal years, sending its stock downward. In a letter to shareholders, CEO Arkady Volozh stated that fiscal year 2026 revenue is expected at the low end of a $3 billion to $3.4 billion range, while capital expenditures are projected to reach $27 billion. The company also anticipates 2027 capex between $40 billion and $45 billion, significantly higher than Wall Street expectations.