TLDR
- CoreWeave (CRWV) shares dropped 8-9% in after-hours trading following its Q4 2025 earnings release
- Q4 revenue hit $1.57B (110% year-over-year growth) and beat expectations, but losses per share of $0.89 exceeded the $0.49 consensus estimate
- Q1 2026 revenue guidance of $1.9B-$2.0B came in significantly below the $2.29B Wall Street forecast
- Full-year 2026 revenue guidance of $12B-$13B met expectations; capex planned at $30B-$35B
- Revenue backlog under contract grew to $66.8B; total debt obligations stand near $30B
CoreWeave experienced a sharp 8-9% decline in after-hours trading Thursday after publishing fourth-quarter results that showed strength in past performance but weakness in near-term expectations, with markets focusing heavily on disappointing forward guidance.
CoreWeave, Inc. Class A Common Stock, CRWV
The AI-focused cloud infrastructure provider posted Q4 revenue of $1.57 billion, beating Wall Street’s $1.55 billion estimate. This figure represented 110% year-over-year growth.
That’s where the good news ended.
The company reported a loss of $0.89 per share, substantially worse than the $0.49 loss analysts had projected. This larger-than-expected loss caught investors off guard.
Adjusted EBITDA came in at $898 million, missing the StreetAccount consensus of $929 million.
But the real driver behind the stock’s slide was the company’s forward-looking projections.
CoreWeave provided Q1 2026 revenue guidance of $1.9 billion to $2.0 billion. Wall Street had been expecting $2.29 billion. The midpoint represents a miss of roughly $290 million—a significant gap by any measure.
Annual Guidance and Massive Capital Investment Plans
For the full 2026 fiscal year, CoreWeave projected revenue of $12 billion to $13 billion, broadly in line with the $12.09 billion analyst consensus.
The capital expenditure forecast, though, is eye-catching. The company expects to deploy $30 billion to $35 billion in capex during 2026, a dramatic jump from $10.31 billion in 2025. This indicates an aggressive infrastructure build-out strategy.
CEO Mike Intrator justified the rapid expansion as necessary to meet demand. “Our clients are desperate to get access to more infrastructure faster,” he told CNBC, adding that he’s prepared to accept short-term margin compression.
CoreWeave ended 2025 with 850 megawatts of live power capacity and 3.1 gigawatts secured through contracts. Management expects to deliver over 1.7 gigawatts of operational capacity by the end of 2026, exceeding analyst projections of 1.59 gigawatts.
The company’s contracted revenue backlog increased to $66.8 billion from $55.6 billion at the end of Q3. Average contract length extended to five years versus four years at 2024’s close.
CoreWeave reported $21.37 billion in outstanding debt as of December 31. When lease obligations are included, total borrowings reach approximately $30 billion—creating meaningful interest expense headwinds on profitability.
GPU Supply Constraints Persist
Nvidia GPU supply remains tight, Intrator confirmed on the earnings call. H100 pricing during Q4 stayed within 10% of levels seen at the beginning of the year. Notably, older-generation A100 chips actually experienced price increases throughout 2025.
Intrator highlighted expanding demand beyond traditional hyperscalers and AI foundation model companies, now including enterprise customers and government entities.
During the quarter, CoreWeave announced a collaboration with AI company Poolside, launched an object storage product, and increased its credit facility to $2.5 billion from $1.5 billion.
Despite the after-hours selloff, CRWV shares had gained 36% year-to-date through Thursday’s regular session close.
Wall Street maintains a Moderate Buy consensus on the stock, with nine Buy ratings and eight Hold ratings among analysts. The average price target sits at $118.57.
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