The consensus analyst price target for Nebius Group has increased to $97.40, reflecting bullish sentiment on the back of a transformative $19.4B hyperscaler contract with Microsoft, stronger-than-expected quarterly results, and accelerated ARR guidance, supporting upward revisions in revenue and growth assumptions.
Analyst Commentary
- Bullish analysts highlight the transformative impact of Nebius securing a $19.4B five-year hyperscaler contract with Microsoft, which supports a significant upward revision in future revenue and growth assumptions.
- The major contract is expected to accelerate GPU installations and fast-track the launch of the New Jersey facility, positioning Nebius ahead of prior growth estimates.
- Recent quarterly results outperformed expectations after accounting for the exclusion of Toloka, with a ~$15M (17%) revenue beat on an apples-to-apples basis.
- Upgraded guidance by management for calendar year 2025 ARR to $900M-$1.1B (from $750M-$1B) indicates accelerated subscription growth momentum.
- Positive views on sector leadership in the artificial intelligence neo-cloud market, full stack software offering, and cost advantages underpin further bullish conviction and supportive risk/reward dynamics.
What's in the News
- Nebius Group signed a multi-year agreement to provide AI infrastructure to Microsoft, financing related capital expenditures via deal cash flow and secured debt, while exploring additional financing for accelerated growth.
- All resolutions at the most recent Annual General Meeting were approved, including amendments to the Articles of Association and authorization of Boaz Tal and designated notaries to sign amendments.
- Maintained 2025 earnings guidance with core business revenue of $400–$600 million, group revenue of $450–$630 million (excluding Toloka, now deconsolidated), and Toloka revenue guidance of $50–$70 million.
- Raised full-year 2025 annualized run-rate revenue outlook to $900 million–$1.1 billion.
- Proposed amendments to reduce authorized Class B and C shares, clarify capital reduction procedures, and make minor editorial changes to Articles of Association.
Valuation Changes
Summary of Valuation Changes for Nebius Group
- The Consensus Analyst Price Target has risen from $89.40 to $97.40.
- The Future P/E for Nebius Group has significantly risen from 56.08x to 64.03x.
- The Net Profit Margin for Nebius Group has fallen slightly from 13.29% to 12.66%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.