TLDR
- Shares of CoreWeave (CRWV) declined 8-9% in after-hours trading after releasing Q4 2025 results
- Fourth-quarter revenue reached $1.57B with 110% year-over-year growth, surpassing forecasts — however, per-share loss of $0.89 exceeded the $0.49 expectation
- First-quarter 2026 revenue outlook of $1.9B-$2.0B fell short of analyst projections of $2.29B
- Full-year 2026 revenue guidance of $12B-$13B aligned with consensus; capital spending expected at $30B-$35B
- Contract backlog expanded to $66.8B; total debt reaches approximately $30B
Shares of CoreWeave tumbled 8-9% during extended trading hours Thursday following the release of fourth-quarter earnings that presented a mixed picture, leaving market participants more concerned about future performance than recent achievements.
CoreWeave, Inc. Class A Common Stock, CRWV
The cloud infrastructure company specializing in AI workloads delivered Q4 revenue of $1.57 billion, exceeding Wall Street’s $1.55 billion projection. The company achieved impressive year-over-year revenue expansion of 110%.
That represents the positive side of the equation.
However, the per-share loss reached $0.89, significantly worse than the $0.49 loss that analysts had forecasted. This substantial miss on the bottom line surprised market participants.
Adjusted EBITDA totaled $898 million, falling short of the $929 million StreetAccount consensus figure.
The primary catalyst for the stock decline, however, centered on forward-looking projections.
CoreWeave issued Q1 2026 revenue guidance ranging from $1.9 billion to $2.0 billion. Analysts had been modeling $2.29 billion. The shortfall amounts to approximately $290 million at the guidance midpoint — a meaningful difference.
Full-Year Outlook and Spending Plans
Looking at the complete fiscal year, CoreWeave provided revenue guidance of $12 billion to $13 billion, which generally matched the $12.09 billion analyst consensus estimate.
The investment spending projection, however, demands attention. Management outlined plans for $30 billion to $35 billion in capital expenditures during 2026, representing a sharp increase from $10.31 billion spent in 2025. This marks a substantial ramp-up in infrastructure deployment costs.
Chief Executive Officer Mike Intrator explained the aggressive expansion strategy was deliberate. “Our clients are desperate to get access to more infrastructure faster,” he explained to CNBC, noting his willingness to accept near-term margin pressure.
CoreWeave closed 2025 operating 850 megawatts of live power capacity with 3.1 gigawatts secured under contract. The company aims to reach over 1.7 gigawatts of operational power capacity by year-end 2026, exceeding analyst estimates of 1.59 gigawatts.
The contracted revenue backlog climbed to $66.8 billion, up from $55.6 billion recorded at Q3’s conclusion. The weighted average duration of customer contracts lengthened to five years, compared with four years at 2024’s end.
CoreWeave disclosed $21.37 billion in outstanding debt as of December 31. When combined with lease commitments, aggregate borrowings approach $30 billion — generating significant interest expenses that pressure profitability.
Supply and Demand Still Tight
Nvidia GPU availability continues facing constraints, Intrator mentioned during the earnings call. Average pricing for H100 chips throughout Q4 remained within 10% of beginning-of-year levels. Interestingly, prices for previous-generation A100 processors actually appreciated during 2025.
Intrator indicated customer demand is broadening beyond hyperscale cloud providers and foundation model developers to encompass enterprise clients and sovereign entities.
Throughout the quarter, CoreWeave announced a partnership with AI model developer Poolside, introduced an object storage offering, and expanded its credit facility to $2.5 billion from $1.5 billion.
Despite the after-hours decline, CRWV shares remained up 36% year-to-date through Thursday’s market close.
Analyst sentiment currently reflects a Moderate Buy consensus rating on the shares, comprising nine Buy recommendations and eight Hold ratings. The mean price target stands at $118.57.
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