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OVHcloud Shares Plunge After 2026 Outlook Disappoints Despite Record €1 Billion Revenue

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OVHcloud (OVH.PA), Europe’s largest cloud provider, celebrated a major milestone on Tuesday as annual revenue surpassed €1 billion for the first time — yet its weaker-than-expected 2026 forecast sent investors fleeing. Shares plunged 18% by mid-morning, marking what could become the company’s biggest single-day drop ever if losses persist.

The firm reported 9.3% revenue growth for fiscal 2025, reaching €1.08 billion, with an EBITDA margin of 40.4%. However, its 2026 outlook disappointed the market: OVHcloud now expects organic revenue growth of just 5–7%, well below analyst projections of around 10%, according to Stifel and J.P. Morgan.

In response, the company pledged to improve profitability by targeting a higher core profit margin while maintaining capital expenditures at 30–32% of revenue to bolster its Webcloud segment. The results come as founder Octave Klaba returns as CEO, merging his chairman role to lead the company’s next phase of expansion. Klaba, who owns more than 80% of OVHcloud, previously served as CEO until 2018.

Klaba said the firm will focus on meeting rising AI-driven cloud demand and promoting European digital independence amid global tech rivalries. OVHcloud continues to expand globally, citing growing client bases in Canada, Singapore, and India, while remaining a key competitor to Amazon Web Services, Microsoft Azure, and Google Cloud.

By segment, Private Cloud accounted for 62% of sales, growing 8.5%, Public Cloud rose 17.5% (20% of revenue), and Webcloud increased 3.7% (18% of total). OVHcloud serves 1.6 million clients, including 1,200 enterprise customers generating over €100,000 in annual recurring revenue.

ISS Urges Investors to Reject CoreWeave’s $9 Billion Acquisition of Core Scientific

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Proxy advisory firm Institutional Shareholder Services (ISS) has advised investors to vote against the proposed $9 billion all-stock merger between artificial intelligence infrastructure company CoreWeave (CRWV.O) and data computing firm Core Scientific (CORZ.O). The shareholder vote is scheduled for October 30.

In its recommendation, ISS said that Core Scientific has shown strong independent performance and can continue to grow without being acquired. The firm noted that the company’s current trajectory suggests it could thrive as a standalone entity.

CoreWeave, which provides cloud infrastructure tailored for AI workloads, first proposed the acquisition in July, offering an implied value of $20.40 per share. However, investor Two Seas Capital quickly announced its opposition to the deal, citing concerns about the sale process, valuation, and the fixed exchange ratio, which leaves Core Scientific shareholders exposed to fluctuations in CoreWeave’s stock price.

Since the announcement, CoreWeave’s shares have declined, reducing the total deal value. Meanwhile, Core Scientific’s stock rose more than 5% in post-market trading on Monday, closing at $18.81, as investors appeared to favor keeping the company independent rather than moving forward with the merger.

Meta to finalize nearly $30 billion financing deal for Louisiana AI data center

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Meta Platforms is nearing completion of an almost $30 billion financing deal for its massive Hyperion data center project in Louisiana, in what would mark the largest private capital transaction in history, according to a Bloomberg News report on Thursday.

The financing package, led by Blue Owl Capital and Morgan Stanley, underscores the staggering scale of investment required to power next-generation artificial intelligence infrastructure. Meta and Blue Owl will split ownership of the site in Richland Parish, with Meta retaining a 20% stake, Bloomberg said, citing people familiar with the matter.

The structure involves more than $27 billion in debt and about $2.5 billion in equity through a special purpose vehicle (SPV). Meta itself will not take on the debt directly but will remain developer, operator, and tenant of the project, which is expected to be completed in 2029.

The deal builds on Meta’s recent $1.5 billion investment in a Texas data center and highlights the growing competition among so-called hyperscalers—including Amazon, Microsoft, and Alphabet—to expand capacity for AI computing workloads.

According to Bloomberg, the financing’s final stage was completed on October 16, when PIMCO anchored the bond issuance, structured under Rule 144A, with other investors taking smaller allocations of the debt, which matures in 2049.

Meta, Blue Owl, and Morgan Stanley have not yet commented on the report.