Key Takeaways
- CoreWeave (CRWV) shares declined 8-9% in after-hours trading following its Q4 2025 earnings release
- Fourth quarter revenue reached $1.57B, representing 110% year-over-year growth and surpassing expectations — however, loss per share of $0.89 exceeded the anticipated $0.49 loss
- First quarter 2026 revenue outlook of $1.9B–$2.0B fell short of the Street’s $2.29B projection
- Annual 2026 revenue guidance of $12B–$13B aligned with expectations; capital spending planned at $30B–$35B
- Contracted revenue backlog expanded to $66.8B; total debt obligations approximately $30B
Shares of CoreWeave declined 8-9% during extended trading hours Thursday following the release of fourth-quarter earnings that presented a mixed picture, shifting investor attention toward future prospects rather than recent achievements.
CoreWeave, Inc. Class A Common Stock, CRWV
The artificial intelligence cloud infrastructure company delivered Q4 revenue of $1.57 billion, surpassing Wall Street’s $1.55 billion projection. The company achieved impressive year-over-year revenue expansion of 110%.
That represents the positive news.
However, the per-share loss of $0.89 significantly exceeded the analyst consensus of $0.49. This substantial variance between projected and actual losses surprised market participants.
The company’s adjusted EBITDA reached $898 million, falling short of the $929 million StreetAccount projection.
The primary catalyst for the share price decline, however, stemmed from forward guidance.
CoreWeave forecasted first quarter 2026 revenue between $1.9 billion and $2.0 billion. Analysts had anticipated $2.29 billion. The shortfall represents approximately $290 million at the midpoint — a substantial miss.
Annual Projections and Capital Investment Strategy
For fiscal 2026, CoreWeave provided revenue guidance of $12 billion to $13 billion, approximately matching the $12.09 billion analyst forecast.
The capital expenditure outlook, however, demands attention. The company outlined plans for $30 billion to $35 billion in capex during 2026, a significant jump from $10.31 billion in 2025. This represents a substantial acceleration in infrastructure investment.
CEO Mike Intrator explained the accelerated 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 concluded 2025 with 850 megawatts of operational power capacity and 3.1 gigawatts secured through contracts. The company aims to achieve over 1.7 gigawatts of active capacity by year-end 2026, exceeding analyst forecasts of 1.59 gigawatts.
The contracted revenue backlog increased to $66.8 billion from $55.6 billion at Q3’s conclusion. The weighted average contract duration extended to five years, up from four years at 2024’s close.
CoreWeave disclosed $21.37 billion in debt as of December 31. When combined with lease commitments, total financial obligations approach $30 billion — with interest expenses pressuring profitability.
Market Dynamics Remain Constrained
Nvidia GPU availability continues facing constraints, Intrator mentioned during the earnings call. Average H100 pricing throughout Q4 remained within 10% of year-start levels. Legacy A100 pricing actually appreciated during 2025.
Intrator indicated demand is expanding beyond hyperscale cloud providers and foundation model developers into enterprise clients and sovereign entities.
Throughout the quarter, CoreWeave announced a partnership with AI model developer Poolside, introduced an object storage offering, and increased its credit facility to $2.5 billion from $1.5 billion.
Notwithstanding the after-hours decline, CRWV shares had gained 36% year-to-date through Thursday’s market close.
Analyst sentiment currently reflects a Moderate Buy consensus on the shares, featuring nine Buy recommendations and eight Hold ratings. The consensus price target stands at $118.57.
