CoreWeave (NASDAQ:CRWV) raised its full-year 2026 revenue and adjusted operating income forecasts on Tuesday, citing demand for artificial intelligence computing infrastructure, while increasing its planned capital expenditure to support additional data centre capacity.
Shares of the Nvidia-backed cloud infrastructure provider advanced more than 16% in premarket trading on Wednesday following the announcement.
The company now expects annual revenue of between $13 billion and $13.3 billion, compared with its previous forecast and analyst consensus of approximately $12.9 billion.
CoreWeave also increased its adjusted operating income guidance to between $1.275 billion and $1.375 billion, representing a 26% rise at the midpoint compared with its earlier outlook.
Third-Quarter Revenue Increases to $3.66 Billion
CoreWeave reported third-quarter revenue of $3.66 billion, compared with $1.37 billion in the corresponding period of the previous year.
The result exceeded analysts’ expectations of approximately $3.54 billion.
The company recorded an adjusted loss of $1.27 per share, narrower than the $1.55-per-share loss anticipated by analysts.
However, its net loss widened to $709 million from $110 million a year earlier, reflecting the financial costs associated with expanding its computing infrastructure.
Net interest expense increased to $846 million from $310 million in the prior-year period.
CoreWeave expects interest expense to rise further in the fourth quarter, forecasting a range of $1.05 billion to $1.15 billion.
Total debt stood at approximately $47 billion as of September 30.
Capital Expenditure Forecast Raised to $37 Billion–$39 Billion
CoreWeave increased the lower end of its full-year capital expenditure guidance to $37 billion from $35 billion, while maintaining the upper end at $39 billion.
The revised forecast reflects plans to accelerate infrastructure deployment and deliver additional computing capacity to customers ahead of previously scheduled timelines.
Capital expenditure reached $14.5 billion in the third quarter, compared with $9.4 billion in the preceding quarter.
The increase reflects continued investment in data centres, computing equipment and supporting infrastructure required to serve artificial intelligence developers and cloud customers.
Management indicated during the earnings conference call that CoreWeave expects to achieve profitability on an adjusted basis during the first half of 2028.
The company continues to expect more than 1.85 gigawatts of active power capacity by the end of 2026.
Active Power Capacity Exceeds 1.7 Gigawatts
CoreWeave added more than 200 megawatts of active power capacity during the third quarter, bringing its total to more than 1.7 gigawatts.
The additional capacity supports the company’s expansion of computing infrastructure used for artificial intelligence training and other processing requirements.
At the end of September, CoreWeave reported a revenue backlog of approximately $132.5 billion.
The backlog represents contracted future revenue, although its conversion into recognised sales will depend on the delivery of computing services and the terms of customer agreements.
The company’s infrastructure expansion is intended to meet existing contractual commitments and anticipated demand for additional computing capacity.
Stifel Maintains Hold Rating and Cuts Price Target to $60
Stifel analysts said CoreWeave’s latest results provided additional evidence of operating leverage as revenue expands.
The analysts stated that the operating leverage argument “is gaining support,” but identified financing requirements as the principal issue facing the company.
They added that “the more important debate is funding.”
According to Stifel, yields on CoreWeave’s unsecured bonds have risen to approximately 16% since early October, reflecting reduced lender appetite for companies operating in the specialised AI cloud infrastructure market.
The analysts noted that management does not intend to issue unsecured debt at current yields and expects to require less than $5 billion of parent-company capital through 2027.
Management also identified the possibility of keeping fiscal 2027 capital expenditure unchanged from the previous year.
Stifel interpreted that possibility as “a floor rather than a guide,” indicating that actual spending could be higher depending on business requirements.
“We view the plan as reasonable, though it relies on prepayments and continued access to secured markets, with proof points ahead,” the analysts wrote.
Stifel maintained its Hold rating on CoreWeave but reduced its price target to $60 from $120, citing “the market’s reduced risk appetite.”
Financing Costs Remain a Consideration for Expansion
CoreWeave’s investment programme has increased its reliance on external financing as it expands data centre capacity.
The company’s debt of approximately $47 billion and rising interest expense have attracted attention from investors assessing the financial requirements of its growth strategy.
CoreWeave shares had declined nearly 58% over the preceding month amid concerns about borrowing levels, capital expenditure and valuations across the artificial intelligence sector.
The company operates in a market where demand for computing infrastructure has led to substantial investment commitments from cloud providers and AI developers.
However, the financing required to build additional capacity creates exposure to changes in borrowing costs, customer demand and the availability of capital.
A slowdown in AI infrastructure investment could affect the pace at which CoreWeave deploys new capacity and converts its contracted backlog into revenue.
Revenue Outlook Reflects Continued AI Computing Demand
CoreWeave’s revised guidance indicates that management expects revenue growth to continue through the remainder of 2026, supported by infrastructure deployment and customer demand.
The higher adjusted operating income forecast also reflects expectations of improved operating performance as additional computing capacity becomes available.
At the same time, the increase in planned capital expenditure and projected interest costs highlights the financial requirements associated with the company’s expansion.
Investors will continue to assess CoreWeave’s ability to deliver contracted infrastructure, manage financing costs and progress towards its stated objective of adjusted profitability in the first half of 2028.