Nebius Group Stock (NBIS) Pulls Back Sharply on Earnings – Analyst Raises PT

Nebius Group N.V. (NASDAQ: NBIS) has captured the attention of analysts with its remarkable year-to-date performance. In today's pre-market, the stock is trading above $94.18, having fallen 20.67% on the week, and 30% on the month following earnings.

Analysts were forecasting a loss per share of about –$0.40 and revenues around $155.72 million for the earnings report. These estimates suggest the company is still operating at a loss in the near term, while revenue generation is modest but also under pressure. Despite this, the consensus outlook remains generally positive given the company’s strategic positioning in AI infrastructure, reflecting more confidence in the growth trajectory than in immediate profitability.

The most striking aspect of Nebius's recent performance is its staggering growth over the past year, with the stock price surging by approximately 200%, even despite the pullback. This meteoric rise is underpinned by strategic partnerships, particularly its landmark agreement with Microsoft, and impressive financial results. The stock's 52-week range reflects this volatility and growth, spanning from a low of $17.38 to a high of $141.10.

The primary catalyst behind Nebius's recent surge is its five-year AI infrastructure agreement with Microsoft, valued between $17.4 billion and $19.4 billion, announced in September. Under the terms of this agreement, Nebius will supply Microsoft with GPU-driven AI infrastructure, including access to over 100,000 Nvidia chips. This deal positions Nebius as a critical player in the global AI cloud ecosystem and highlights its rapid expansion in the U.S. market.

Nebius's financial performance in the second quarter of 2025 further supported its growth narrative. The company reported a revenue surge of 769.7% year-over-year, reaching $105.1 million. Net income increased by 205% to $584.4 million, resulting in a net profit margin of 556%. While operating expenses rose to $186.2 million, reflecting the company's aggressive scaling efforts, the overall financial picture is one of robust growth and profitability.

The full year revenue guide of $500-$550 million fell short, even at the high end, of expectations for $578.16million leading into the latest earnings. Revenue of $146.1million also failed to meet the street's $155.72million.

Despite this, Northland raised their price target on the stock to $211 from $206, keeping an Outperform rating in place. Bullish, and not to be shaken by recent results.