Shares of Nebius Group NV ( NBIS ) rallied on Thursday after the company reported strong first-quarter results.

The results highlighted "continued demand signals across customer demographics," while the company also raised its 2026 contracted power outlook from 3GW to 4GW, according to DA Davidson analyst Alexander Platt.

The Nebius Group ( NBIS ) Analyst: Platt maintained a Buy rating, while raising the price target from $200 to $250.

The Nebius Group ( NBIS ) Thesis: The company's total revenue grew 684% year-on-year to $399 million, driven by "continued strength of the core business," Platt said in the note.

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Nebius' ( NBIS ) core business reached an annualized revenue run rate of $1.9 billion at the end of March, marking more than 50% sequential growth, with management reaffirming its 2026 guidance of $3 billion-$3.4 billion in revenue and $7 billion-$9 billion in ARR, Platt said.

Platt also noted that Nebius Group ( NBIS ) expanded its contract with Meta Platforms ( META ) to more than $27 billion. He added that a second $15 billion portion of the agreement could potentially be allocated to other customers at more favorable economics.

The company now has more than 3.5GW of contracted power, above its prior 2026 target of 3GW, and expects to reach 4GW by year-end. Platt said the additional capacity will largely support the Meta deal, though Nebius ( NBIS ) may eventually need to extend existing agreements or secure another hyperscaler customer to reach its long-term 5GW target by 2030.

NBIS Price Action: Shares of Nebius Group ( NBIS ) had risen by 8.32% to $224.51 at the time of publication on Thursday.

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