TLDR
- CRWV shares plummeted 18.5% following fourth-quarter earnings released February 27
- Company posted $1.57B in quarterly revenue, representing 110% annual growth, though Q1 outlook disappointed
- Quarterly losses expanded dramatically to $284M compared with $36M in the prior-year period
- Contract backlog surged fourfold to $66.8B, boosted by approximately $5B Meta deal
- Management forecasts $30B–$35B in capital expenditures for 2026, versus $14.9B spent in 2025
CoreWeave (CRWV) shares took a beating following the release of its fourth-quarter financial results, sliding 18.5% on February 27. While the company delivered impressive top-line growth, investors reacted negatively to mounting expenses and disappointing forward-looking projections.
CoreWeave, Inc. Class A Common Stock, CRWV
Fourth-quarter revenue reached $1.57 billion, representing a 110% surge compared to the same period last year and marginally exceeding Wall Street’s $1.53 billion forecast. However, the company’s net loss expanded significantly — jumping from $36 million to $284 million year-over-year.
Per-share losses totaled $0.89, substantially higher than the $0.50 consensus forecast. Meanwhile, the adjusted operating margin contracted to approximately 6%, a notable decline from the 16% margin recorded in the prior-year quarter.
The firm’s total revenue backlog expanded from $15.1 billion to $66.8 billion, marking a nearly fourfold expansion. This growth includes a fresh agreement with Meta valued at roughly $5 billion.
Chief Executive Michael Intrator explained the company opted to accelerate its buildout timeline. “We made the decision to go ahead and to build faster so that we can deliver more infrastructure,” he explained to Reuters.
This strategic choice carries significant financial implications. CoreWeave anticipates capital expenditures ranging from $30 billion to $35 billion during 2026, representing a substantial increase from the $14.9 billion deployed in 2025. The elevated spending reflects investments in Nvidia processors, data center facilities, and power infrastructure.
Chief Financial Officer Nitin Agrawal emphasized that the entire capital outlay corresponds to contracts already secured with customers. Intrator noted that the first quarter would represent “the low point” for profitability metrics before sequential improvement begins.
Analysts Cut Targets
The majority of Wall Street analysts maintained neutral positions following the earnings release. JPMorgan’s Mark Murphy reduced his price objective from $110 to $90, citing first-quarter guidance that significantly trailed consensus expectations and an investment phase that proved “more pronounced than expected.”
Mizuho’s Gregg Moskowitz similarly maintained a Hold stance, lowering his target from $100 to $95. Stifel’s Ruben Roy adjusted his objective downward to $110 from $120, observing that the company fast-tracked investments in Nvidia’s Blackwell and Rubin processor platforms. Active data center power capacity expanded from 590MW to 850MW during the quarter.
Roy indicated he needs to observe tangible evidence of margin improvement before adopting a more optimistic view. While the capital spending program secures future revenue streams, it’s compressing near-term profitability.
D.A. Davidson’s Alexander Platt diverged from the consensus perspective. He increased his price target from $110 to $125 while maintaining his Buy recommendation, contending that rapidly deploying capacity represents the critical success factor in the AI infrastructure competition. Cantor Fitzgerald similarly maintained an Overweight rating with a $131 price objective.
Insider Sale and Debt Picture
On February 26 — one day before shares declined — CoreWeave’s General Counsel Kristen J. McVeety divested 2,601 Class A shares at prices ranging from $95.77 to $100.40, generating proceeds of $261,554. The transaction occurred under a predetermined trading arrangement established in May 2025. She continues to own 120,079 shares.
The company maintains approximately $14 billion in outstanding debt. Management indicated it anticipates reducing its weighted average capital cost over time as operations scale.
CoreWeave concluded 2025 operating 850 megawatts of active power capacity distributed across 43 data center locations, with 3.1 gigawatts of contracted capacity scheduled to become operational primarily by 2027.
For the first quarter, management projected revenue between $1.9 billion and $2.0 billion. This guidance fell significantly short of the $2.29 billion Wall Street consensus.
On TipRanks, CRWV carries a Moderate Buy consensus rating based on 11 Buy recommendations and 8 Hold ratings, with an average analyst price target of $114.18.
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