Shares of CoreWeave (NASDAQ:CRWV) dropped over 10% in premarket U.S. trading on Wednesday after the cloud computing company reported second-quarter results showing revenue above expectations due to strong AI-driven demand, but losses significantly exceeded forecasts as expenses surged.
For the quarter ending June 30, CoreWeave posted a loss of $0.60 per share on $1.21 billion in revenue, compared with analyst estimates of a $0.20 loss on $1.08 billion in revenue. Operating costs soared to $1.19 billion, up sharply from $317.7 million in the same period last year.
Key customer wins included a $4 billion expansion with OpenAI, new hyperscaler collaborations, and partnerships with AI labs and enterprises such as BT Group (LSE:BT.) and Cohere.
“In addition, the company materially raised its 2025 revenue growth estimate by $250 million and noted that AI compute demand continues to strengthen,” analysts at Mizuho said in a note.
Headquartered in New Jersey, CoreWeave now anticipates full-year revenue of $5.15 billion to $5.35 billion, citing strong demand for AI inference—a chain-of-thought reasoning method enabling trained models to draw conclusions from new data, currently being adopted by cutting-edge AI firms like OpenAI.
However, Mizuho analysts highlighted that, despite the upward revision to revenue guidance, CoreWeave “only reiterated” its earnings before interest and taxes expectation of $800 million to $830 million. They noted that this would translate to a 15.5% operating margin at the midpoint—80 basis points below the prior forecast of 16.3%.
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