Compass Point raised its price target on Nebius Group (NASDAQ:NBIS) to $260 from $150 on Thursday while maintaining a Buy rating following the company’s first-quarter results.
Nebius reported group revenue increased 75% quarter-over-quarter to $399.0 million from $227.7 million. AI Cloud revenue rose 82% to $389.7 million and accounted for 98% of total Q1 revenue. The stock has rallied 474% over the past year, trading at $207.27 with a market cap of $53.1 billion.
Annual recurring revenue (ARR) increased to $1.92 billion. Adjusted EBITDA rose to $129.5 million, with AI Cloud adjusted EBITDA margin expanding to 45%. Deferred revenue hit $4.78 billion, while cash rose to $9.30 billion.
The company’s fiscal 2026 ARR target stands at $7 billion to $9 billion. Compass Point initiated coverage on February 18.
In other news, Nebius Group reported impressive Q1 2026 results, with EPS of $171.54 versus a forecast of -$62.2, and revenue of $32.44 billion, beating estimates. Analysts from Goldman Sachs, Wolfe Research, Citizens, and DA Davidson have issued positive ratings.
