Nebius Q2 Earnings Preview: Will the AI Infrastructure Provider Meet its Full-Year Guidance?

Nebius is a formidable player in the AI infrastructure market, competing with giants like CoreWeave and Oracle. The company is scheduled to report Q2 earnings on Aug. 7, and investors should look for guidance on whether Nebius remains on pace to hit its full-year 2025 ARR guidance of $750 million to $1 billion and achieves positive EBITDA in the second half of the year. Strong growth from its infrastructure business could be a positive sign for the company's future.

Nebius Group (NASDAQ: NBIS), a significant player in the AI infrastructure market, is set to release its second-quarter (Q2) earnings on August 7, 2025. The company has been making waves in the industry, competing with giants like CoreWeave and Oracle. Investors are eagerly awaiting this earnings report to gauge Nebius' performance and future prospects.

Earnings Expectations

Nebius Group's management previously guided for an annualized run rate revenue (ARR) between $750 million and $1 billion by the end of December 2025. During the first quarter, the company reported an ARR of $249 million for its core infrastructure services segment. This momentum carried over into the second quarter, with April ARR landing around $310 million. Investors will be looking for Nebius to maintain this trajectory and achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second half of the year.

Impact of AI Infrastructure Spending

The AI revolution is being fueled by significant capital expenditures (capex) from tech giants. Cloud hyperscalers such as Microsoft, Amazon, and Alphabet are expected to collectively spend $260 billion on AI infrastructure in 2025. Alphabet recently announced an additional $10 billion increase in its infrastructure spend for this year. These trends bode well for Nebius, as the company is a key partner to Nvidia's ecosystem, helping to roll out its latest GPUs worldwide.

Market Position and Competitive Landscape

Nebius Group is one of several emerging data center stocks that have gained popularity. However, it faces stiff competition from established players like Nvidia and Advanced Micro Devices. Oracle's recent $30 billion cloud infrastructure services deal further underscores the competitive landscape. Investors will be watching to see if Nebius can maintain its growth trajectory relative to these competitors.

Investment Considerations

Since Nebius reported its first-quarter earnings on May 1, its stock has risen by 36%. While the stock has been trading sideways recently, there is still momentum fueling its price action. Investors with a long-term perspective should consider dollar-cost averaging, investing in high-conviction positions over several years at different price points. Assessing the company's second-quarter earnings report before making or adding to investments can help make better-informed decisions.

Conclusion

The upcoming earnings report for Nebius Group is crucial for investors. Key metrics to watch include whether the company remains on pace to hit its full-year ARR guidance and achieves positive EBITDA in the second half of the year. Strong performance in these areas could signal robust growth and a positive outlook for the company's future.

References

[1] https://finance.yahoo.com/news/nebius-stock-buy-aug-7-140700240.html
[2] https://www.mitrade.com/insights/news/live-news/article-8-1002433-20250731