TLDR
- CoreWeave posted Q3 revenue of $1.36 billion, up 134% year-over-year and above the $1.29 billion estimate
- Full-year 2025 revenue guidance dropped to $5.05-$5.15 billion from $5.15-$5.35 billion due to data center partner delays
- New contracts include $14.2 billion with Meta and $6.5 billion with OpenAI
- Shares fell 6% after hours despite strong quarterly results and 164% gains since March IPO
- Company expects 2026 capital spending to more than double from the $12-$14 billion planned for 2025
CoreWeave delivered third-quarter revenue of $1.36 billion on Monday, crushing the $1.29 billion analyst consensus. Revenue more than doubled from $583.9 million in the year-ago period.
The earnings beat didn’t stop the stock from sliding 6% in after-hours trading. The culprit was a reduced full-year revenue forecast that disappointed Wall Street.
The company now projects 2025 revenue between $5.05 billion and $5.15 billion. That’s below the previous guidance of $5.15 billion to $5.35 billion and under the $5.29 billion analyst estimate.
CoreWeave, Inc. Class A Common Stock, CRWV
CEO Mike Intrator pointed to a third-party data center developer running behind schedule. The delay impacted service delivery to one customer, though the customer agreed to extend the contract expiration date.
Data Center Constraints Slow Growth
“There was a problem at one data center that’s impacting us, but there are 41 data centers in our portfolio,” Intrator told analysts. He said the issue isn’t power availability but rather access to powered-shell data centers where CoreWeave can deploy equipment.
The company is constructing its own facility in Pennsylvania from the ground up. Intrator expects most delays to clear by the first quarter of 2026.
CoreWeave reported a net loss of $110 million in the quarter, improved from a $360 million loss a year earlier. The loss per share came in at 22 cents.
Operating margins compressed to 16% from 21% in the prior-year period. Rising AI chip prices and infrastructure expansion costs are squeezing profitability.
Massive Contracts Fuel Backlog Growth
CoreWeave announced a six-year Meta deal worth up to $14.2 billion during the quarter. The company also expanded its OpenAI partnership by $6.5 billion.
The firm secured a sixth contract from an unnamed hyperscaler customer. Total backlog reached $55.6 billion with 2.9 gigawatts in contracted power, up from 2.2 gigawatts in June.
CoreWeave rents Nvidia GPUs to AI companies and works with major cloud providers including Google and Microsoft.
Capital Spending Plans Accelerate
CFO Nitin Agrawal said 2026 capital expenditures will exceed double the 2025 total. The company plans to spend $12 billion to $14 billion this year on infrastructure expansion.
CoreWeave went public in March at $40 per share. The stock closed Monday at $105.61, up 164% since the IPO compared to a 32% gain for the Nasdaq.
The company attempted to acquire Core Scientific for $9 billion in October, but shareholders rejected the deal. CoreWeave has 41 data centers in its current portfolio and continues expanding capacity to meet demand.
