CoreWeave reported better-than-expected quarterly revenue and raised its forecast for 2026 on Tuesday, showing that demand for artificial intelligence infrastructure remains strong despite fears of a market slowdown. The stock rose slightly in extended trading.
The earnings announcement comes at a particularly volatile time for CoreWeave and its neocloud peers, as the market deteriorates on AI trading and Nvidia CEO Jensen Huang, a central figure in global construction, is facing a scandal linked to an affair with an alleged Chinese spy.
Here is the company’s performance compared to the LSEG consensus:
- Earnings per share: Loss of $1.27. It is not immediately clear whether the loss compares to the consensus LSEG of $1.16.
- Income: $3.66 billion versus $3.55 billion expected
CoreWeave’s revenue soared 168% from about $1.36 billion a year earlier, according to a statement. The company reported a net loss of $709 million, or $1.27 per share, compared with a net loss of $110 million a year earlier. Adjusted earnings exclude stock-based compensation.
Executives raised their forecast for 2026. They now expect adjusted operating profit of $1.275 billion to $1.375 billion on revenue of $13 billion to $13.3 billion. Analysts surveyed by Visible Alpha expected adjusted operating profit of $1.07 billion, and analysts surveyed by LSEG expected revenue of $12.86 billion in 2026.
In August, CoreWeave forecast adjusted operating profit of $960 million to $1.15 billion and revenue of $12.4 billion to $13.2 billion.
CoreWeave has lost more than 40% of its value over the past month as investors shy away from companies most closely tied to AI infrastructure. Rising interest rates have pushed lenders out of the market, raising concerns about continued access to capital. Yields on some CoreWeave bonds recently exceeded 16%.
Neocloud friend Nebiuswhose stock is down a similar amount, is expected to report results Thursday. Nebius shares got a slight boost from CoreWeave results.
Both companies and several other providers of cloud-based graphics processing units are particularly reliant on Nvidia, which provides the GPUs as well as the capital needed for the entire ecosystem. Nvidia shares fell nearly 10% earlier this week as the Huang case increases pressure on the company in Washington, DC. Nvidia’s board said Tuesday it had hired Wachtell, Lipton, Rosen & Katz to investigate Huang and determine whether national security or company secrets had been compromised.
CoreWeave investors are also looking ahead to next week, when key client Anthropic is expected to debut on the Nasdaq. In its updated IPO prospectus Tuesday, Anthropic said it could be valued at around $1.4 trillion after selling its shares.
During the quarter, CoreWeave announced the creation of its first data centers in Asia and announced the Forge service to run and evaluate AI models.
Management still projects 1.85 gigawatts of active power by the end of 2026. CoreWeave is targeting $37 billion to $39 billion in capital spending for the full year, which would imply 155% growth at the midpoint of the range. Analysts polled by Visible Alpha expected $37.69 billion.
CoreWeave had nearly $47 billion in debt at the end of the third quarter, according to the release. Like its biggest cloud rivals such as Amazon And OracleCoreWeave is eager to strengthen the IT capacity of its customers. But last week, voters in the United States, where CoreWeave makes most of its revenue, rejected dozens of initiatives on data center development.
At the same time, demand remains robust, with the company now sitting on a revenue book of $132.5 billion, up from $104 billion in June.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This story is developing. Please check again for updates.
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