CoreWeave beats Q3 estimates and lifts outlook as AI-spending fears ease
CoreWeave reported third-quarter revenue of $3.66 billion, up 168% from a year earlier, and raised its full-year outlook. Its shares rose about 19% in premarket trading after a financing plan eased debt worries.
What happened
CoreWeave, the cloud provider at the center of the debate over AI spending, reported third-quarter revenue of $3.66 billion, up 168% from $1.365 billion a year earlier and above the $3.54 billion FactSet consensus. Its net loss widened to $709 million, or $1.27 a share, from $110 million a year earlier; the per-share loss matched consensus estimates.
Revenue backlog reached about $132.5 billion at September 30, up from about $104 billion at June 30. Shares rose 8% in extended trading after a 40% slide over the past month, and were up nearly 19% in premarket trading on Wednesday. The stock had fallen nearly 60% over the past six months as investors worried about the company's debt load.
- Revenue$3.66 billion, up 168%
- Net loss per share$1.27, matching consensus
- Revenue backlog$132.5 billion
- 2026 revenue guidance$13.0–13.3 billion
- Shares in premarket tradingup nearly 19%
A new financing plan
Beyond the headline numbers, the report eased the financing worry that had driven the selloff. Chief Executive Michael Intrator said on the earnings call: "We will not use the unsecured debt market to fund our business at current yields, nor do we need to." Instead, CoreWeave plans to use delay-draw term loans, which let it draw set amounts over time, and expects to collect $9 billion in customer prepayments in the next three months.
The company spent $14.5 billion on infrastructure in the quarter, above the $11.9 billion FactSet estimate, and guided full-year spending to $37 billion to $39 billion. Management said customer demand is outstripping 2027 capacity by 10 times. CoreWeave also launched Forge, a platform for building AI applications, and said 70% of its new cloud customers came from Forge.
Guidance raised, and a path to profit
CoreWeave raised its full-year 2026 revenue guidance to $13.0 billion to $13.3 billion, from $12.4 billion to $13.2 billion, and lifted adjusted operating income guidance to $1.275 billion to $1.375 billion, a 26% increase at the midpoint. It also raised its annualized run-rate revenue target to $20 billion to $21 billion to exit 2026, and said it expects to turn profitable on an adjusted basis in the first half of 2028.
Analysts welcomed the tone. "We believe increased evidence of demand durability can help alleviate higher financing costs," analysts at Citigroup wrote. MoffettNathanson analyst Nick Del Deo called the shift toward prepayments a less risky move than taking on more debt, though he noted the company may need to raise more funds next year through an equity raise or equity-linked instruments.
What to watch
The result steadied the wider AI trade overnight. Nasdaq futures rose 1.3%, and shares in Taiwan and South Korea rose 2.7% and 2.1%. But the debate is not settled. The same night brought a hot inflation reading, with core prices up 0.3% in a month, and Federal Reserve Governor Waller said a 50-basis-point December rate rise was on the table.
CoreWeave still carries a heavy debt load, and it expects interest expense of $1.05 billion to $1.15 billion in the fourth quarter. Investors will watch whether the backlog turns into revenue as new capacity comes online, and whether the company can fund its buildout without returning to the debt market.
