Key Takeaways
- CoreWeave (CRWV) shares declined 8-9% in extended trading after releasing Q4 2025 results
- Fourth-quarter revenue reached $1.57B, representing 110% annual growth and surpassing forecasts — however, EPS loss of $0.89 exceeded the anticipated $0.49 loss
- First-quarter 2026 revenue outlook of $1.9B–$2.0B fell significantly short of the $2.29B Wall Street consensus
- Annual 2026 revenue projection of $12B–$13B aligned with expectations; capital spending planned at $30B–$35B
- Contract backlog expanded to $66.8B; total debt obligations approximately $30B
Shares of CoreWeave tumbled 8-9% during Thursday’s after-hours session following the release of fourth-quarter earnings that presented a mixed picture, with forward-looking guidance overshadowing recent performance gains.
CoreWeave, Inc. Class A Common Stock, CRWV
The company, which provides cloud infrastructure for artificial intelligence workloads, delivered Q4 revenue of $1.57 billion, exceeding Wall Street’s $1.55 billion projection. Revenue surged 110% compared to the same period last year.
That represents the positive headline.
However, the loss per share reached $0.89, significantly worse than the $0.49 loss analysts had anticipated. This earnings miss surprised market participants and contributed to selling pressure.
Adjusted EBITDA totaled $898 million, falling short of the $929 million StreetAccount estimate.
The primary catalyst for the stock decline, however, centered on future expectations.
CoreWeave issued Q1 2026 revenue guidance ranging from $1.9 billion to $2.0 billion. Analysts had been forecasting $2.29 billion. The midpoint difference of approximately $290 million represented a substantial shortfall.
Annual Projections and Capital Investment Strategy
Looking at the full year, CoreWeave projected revenue between $12 billion and $13 billion, which aligned closely with the $12.09 billion analyst forecast.
The capital spending narrative, however, demands attention. The firm outlined plans for $30 billion to $35 billion in capital expenditures throughout 2026, a massive jump from the $10.31 billion spent in 2025. This represents an aggressive infrastructure expansion.
CEO Mike Intrator defended the accelerated investment strategy. “Our clients are desperate to get access to more infrastructure faster,” he explained to CNBC, noting his willingness to accept near-term margin compression.
CoreWeave closed 2025 with 850 megawatts of operational power capacity and 3.1 gigawatts secured through contracts. Management aims to exceed 1.7 gigawatts of live capacity by year-end 2026, surpassing analyst expectations of 1.59 gigawatts.
The company’s revenue backlog climbed to $66.8 billion from $55.6 billion at Q3’s conclusion. Average contract duration increased to five years from four years at 2024’s end.
CoreWeave carried $21.37 billion in debt as of December 31. When including lease commitments, total obligations approach $30 billion — creating meaningful interest expenses that pressure profitability.
Market Dynamics Remain Challenging
Nvidia GPU availability continues facing limitations, Intrator acknowledged during the earnings call. H100 pricing throughout Q4 remained stable, varying within 10% of year-start levels. Interestingly, previous-generation A100 chips saw price appreciation in 2025.
Intrator observed that customer demand is expanding beyond large hyperscale cloud providers and foundation model developers to include enterprise clients and sovereign entities.
Throughout the quarter, CoreWeave secured a partnership with AI development company Poolside, introduced an object storage offering, and expanded its credit facility to $2.5 billion from $1.5 billion.
Despite the post-market decline, CRWV shares remained up 36% year-to-date through Thursday’s regular session close.
Analyst sentiment currently reflects a Moderate Buy rating, with nine Buy recommendations and eight Hold ratings. The consensus price target stands at $118.57.
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