Nebius Group (NBIS) Strong competitive performance and robust

Equity Research 24 August 2026 | 2:18PM BST

Nebius Group (NBIS): Strong competitive performance and robust pricing drive our estimates higher; Reiterate Buy

Alexander Duval | Goldman Sachs International

Anant Jakhar | Goldman Sachs India SPL In this note, we update our estimates and 12M PT to reflect the latest commentary Ayo Odunaiya on continued strong demand for Nebius’s AI Infrastructure business as well as robust | pricing tailwinds from pricing trends. Key takeaways include: 1) Competitive Goldman Sachs International customer wins and robust pricing reinforce demand visibility, 2) Capacity build-out accelerating, underpinned by faster power procurement, 3) Customer prepayments and contracted backlog provide multiple financing levers, and 4) Asset-light model and pricing uplift support longer-term margins. Reiterate Buy.

n Competitive customer wins and robust pricing reinforce demand visibility: Management indicated that 2Q revenue benefitted from higher utilisation alongside a growing contribution from higher-margin, asset-light offerings including Token Factory and recent acquisitions. More importantly, the company characterised demand as exceptionally strong, reflected in four landmark billion-dollar contracts secured during the quarter, all of which were competitive wins - i.e., customers already had incumbent suppliers but selected Nebius for additional next-gen requirements. Deals closed in 2Q at >$20m/MW and sub-two-year payback periods are expected to begin contributing from late 4Q, providing a reference point for pricing into early 2027. Moreover, commercial terms also remain firm, with Nebius negotiating shorter-duration capacity agreements of up to six months in the $40-50mn per MW range which should serve as a meaningful topline contributor in 2027 and beyond. n Capacity build-out accelerating, underpinned by faster power procurement: Capacity deployed late in 2Q is expected to begin contributing to revenue in 3Q, while existing customer commitments and capital investments provide visibility into the 2026 build-out and support preparations for materially higher deployment in 2027. Importantly, Nebius is deliberately retaining some 2027 capacity rather than contracting it today, reflecting management’s confidence in future pricing. Execution on infrastructure remains on track, with construction of the Vineland, New Jersey building completed earlier this summer and engineering fit-out progressing. Furthermore, the switch to Bloom fuel cells is

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Nebius Group (NBIS)

expected to enhance the project from a community perspective, providing reliable power with low-emissions, allowing Nebius to unlock and expedite future site development. Management noted that significantly more capacity is expected to be deployed in 2027 than in 2026, with the company securing access to hundreds of MWs of behind-the-meter power generation. As such, Nebius upgraded its target to have 5GW (vs >4GW prior) of contracted power by FY26, given it continues to secure power faster than expectations. Additionally, we highlight that Nebius now aims to deploy >1GW of capacity per year going forward based on the strong execution in recent quarters. Finally, the company is adding Arm and CPU deployments alongside the GPU fleet to address new agentic workload requirements, which we view as additive to the company’s competitive offering. n Customer prepayments and contracted backlog provide multiple financing levers: Nebius highlighted multiple sources of capital available to fund its growth, beginning with operating cash flow, which is already positive and expected to increase as the business scales. Customer…