Investing.com -- Nebius Group N.V. (NASDAQ: NBIS) reported first-quarter results that significantly exceeded analyst expectations, sending shares over 14% higher in premarket trading.

Adjusted earnings per share came in at $2.11 compared to the consensus estimate of -$0.78. Revenue reached $399 million, surpassing the analyst estimate of $388.57 million and marking a 684% increase from $50.9 million in the same quarter last year.

The AI cloud company's stock surged 12.6% following the announcement, reflecting investor enthusiasm for the strong performance. The company also announced it has secured up to 1.2 GW of power and land for a new AI factory in Pennsylvania.

"We are pleased with our strong first-quarter performance as we continue to scale our AI cloud infrastructure," said Arkady Volozh, founder and CEO of Nebius Group.

Adjusted EBITDA swung to $129.5 million from a loss of $53.7 million in the first quarter of 2025. Net income from continuing operations reached $621.2 million, compared to a loss of $104.3 million in the prior-year period. However, adjusted net loss widened 20% to $100.3 million from $83.6 million.

Operating expenses increased substantially as the company scaled operations. Cost of revenues rose 320% to $103.8 million, though it declined as a percentage of revenue to 26% from 49%. Product development expenses increased 85% to $67.4 million, while sales, general and administrative costs jumped 136% to $143.8 million. Depreciation and amortization expenses surged 332% to $212 million.