Key takeaways
- CoreWeave's Q3 revenue surged 168% to $3.66 billion
- The company increased its 2026 revenue forecast to $13 billion–$13.3 billion
- CoreWeave also reported a $709 million net loss and $46.9 billion in debt
CoreWeave shares rallied in pre-market trading on Wednesday after the AI cloud infrastructure company reported stronger-than-expected third-quarter earnings and raised its full-year revenue forecast.
However, widening losses and huge debt obligations are raising some important questions about the company's long-term profitability.
CoreWeave Earnings Beat Wall Street Expectations
CoreWeave reported third-quarter revenue of $3.66 billion, which is a 168% increase from $1.37 billion during the same period last year. The figure exceeded analysts' expectations of approximately $3.55 billion, thanks to continued demand for artificial intelligence computing infrastructure.
(Source: investors.coreweave.com)
Despite the impressive revenue growth, the Nvidia-backed company recorded a net loss of $709 million, compared with a $110 million loss a year earlier. Its loss per share reached $1.27, while quarterly net interest expenses climbed to approximately $846 million. CoreWeave also reported adjusted EBITDA of $2.26 billion.
The earnings announcement sent CoreWeave shares approximately 13% higher in pre-market trading. This was much needed after a difficult month in which the stock lost almost 40% of its value.
CoreWeave Raises Revenue Guidance
After the earnings beat, CoreWeave increased its 2026 revenue forecast to between $13 billion and $13.3 billion, up from its previous projection of $12 billion to $13 billion. The company also raised its adjusted operating income outlook to between $1.275 billion and $1.375 billion.
Meanwhile, CoreWeave's revenue backlog climbed to $132.5 billion, compared with approximately $104 billion at the end of June. The increase indicates that there is substantial contracted demand for its AI computing services.
However, meeting that demand will require serious investment. CoreWeave expects capital expenditures of between $37 billion and $39 billion during 2026 as it expands its data center infrastructure.
Debt Concerns Cloud CoreWeave's Stock Outlook
Despite its accelerating revenue growth, CoreWeave faces mounting scrutiny over its financing strategy.
The company reportedly carried approximately $46.9 billion in total debt at the end of September, while quarterly interest expenses are expected to reach between $1.05 billion and $1.15 billion in the fourth quarter.
Management expects to achieve adjusted profitability during the first half of 2028, which suggests that major spending and financing costs could continue weighing on results.
Although the earnings beat and stronger guidance provided a boost to CRWV shares, the company's ability to manage its debt and generate sustainable profits will likely be some of the major factors influencing its stock performance.
