Nebius Group N.V. [NASDAQ: NBIS] is set to report first-quarter 2026 results on May 13, entering earnings season with a stock that has surged 431% over the past year but faces questions around its elevated valuation and heavy capital commitments.

The Zacks consensus estimate for the quarter points to a loss of 81 cents per share on total revenue of $316.9 million, with analysts leaving their estimates unchanged over the past 30 days.

Based in Amsterdam, Nebius has positioned itself as a specialist AI infrastructure company, with its core business being a cloud platform built specifically for intensive AI and machine learning workloads.

The company recently agreed to acquire Eigen AI for approximately $643 million in cash and stock, a move designed to integrate AI inference optimisation technology into its Token Factory platform.

Nebius secured a $2 billion investment from Nvidia [NASDAQ: NVDA] in March 2026, strengthening collaboration across the AI technology stack and supporting its long-term goal of deploying more than 5 gigawatts of AI computing capacity by 2030.

The company is aggressively expanding its global data-centre footprint across Israel, the UK, Finland, New Jersey, and other locations, with much of the upcoming capacity already pre-sold.

Management noted on its last earnings call that the company was sold out through the first quarter of 2026, backed by large multi-year agreements with Microsoft [NASDAQ: MSFT] and Meta that are expected to contribute meaningfully to revenue growth through the rest of the year.

Nebius raised its contracted power target to more than 3 gigawatts for 2026 and expects 800 megawatts to 1 gigawatt of connected capacity by year-end.

However, the company plans to invest $16 to $20 billion in AI infrastructure expansion in 2026, and management expects EBIT to remain negative for the full year due to continued spending on capacity, GPUs, and research and development.

Nebius shares trade at a price-to-book ratio of 9.75x, well above the Internet Software Services industry average of 3.9x, and carry a Value Style Score of F, indicating stretched valuation at current levels.

With stiff competition from CoreWeave [NASDAQ: CRWV] and ongoing macroeconomic uncertainty adding to execution risk, Zacks recommends maintaining a hold position while prospective investors wait for a more attractive entry point.

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