A significant surge in institutional investment is shining a spotlight on Nebius Group. Regulatory filings have revealed that BlackRock, the world’s largest asset manager, executed a staggering increase in its position during the final quarter of 2025. This move preceded a new “Buy” rating from analysts at Compass Point, initiated on February 18, 2026. On that same day, Nebius shares advanced by 4.4% to close at $101.80.
A Strategic Pivot by a Financial Giant
Recent 13F filings detail the scale of BlackRock’s commitment. As of December 31, 2025, the firm reported holding 9,431,400 shares of Nebius, representing an investment worth approximately $789 million at year-end.
This figure marks a dramatic shift in strategy. Just one quarter earlier, in November 2025, BlackRock’s disclosed position stood at a mere 23,866 shares. The accumulation represents an increase of roughly 39,418% within a single quarter, signaling a decisive move from a minor observational stake to a core, high-conviction holding.
Stellar Revenue Growth Amidst a Quarterly Miss
The company’s financial results, released on February 12, 2026, showcased explosive top-line expansion. For Q4 2025, revenue hit $227.7 million, a monumental 547% jump from the $35.2 million reported in the prior-year period. However, this result fell short of analyst consensus estimates, which were near $246 million.
For the full year 2025, Nebius generated total revenue of $529.8 million. Its annualized revenue run-rate (ARR) climbed to $1.2 billion by December. Notably, the company achieved positive adjusted EBITDA at the group level for the first time. The core AI cloud infrastructure business delivered an adjusted EBITDA margin of 24%, improving from 19% in Q3.
The quarter concluded with a net loss of $249.6 million. Nebius ended the year with a strong cash position of $3.7 billion, and Q4 operating cash flow was reported at $834 million.
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Ambitious Growth Targets and Heavy Investment
Management has outlined aggressive goals for the 2026 fiscal year. Revenue guidance was set between $3.0 billion and $3.4 billion. The company expects its ARR to reach $7 billion to $9 billion by year-end, targeting an adjusted EBITDA margin of approximately 40%.
To fuel this expansion, Nebius plans capital expenditures in the range of $16 billion to $20 billion. According to commentary from the earnings call, an estimated 60% of these investments will be funded by customer prepayments, primarily stemming from large-scale contracts with Microsoft and Meta.
The firm announced plans for nine new global data centers. It also raised its target for contracted power capacity to over 3 gigawatts for 2026, up from a previous goal of 2.5 gigawatts.
Platform Expansion Through the Tavily Acquisition
Just two days before its earnings report, on February 10, 2026, Nebius disclosed the acquisition of Tavily. Industry sources indicate the purchase price for this provider of AI-powered search functionality was around $275 million.
The deal integrates real-time search capabilities for AI agents into the Nebius cloud platform. Tavily’s client roster includes Fortune 500 companies like IBM as well as AI firms such as Cohere and Groq. Its developer community exceeds one million users, with more than three million monthly SDK downloads recorded.
With a market capitalization hovering around $25.7 billion, Nebius faces several critical milestones before the end of the year. Achieving them will demonstrate whether its ambitious growth trajectory is sustainable.
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