CoreWeave, an artificial intelligence infrastructure provider, saw its stock rise 14% in extended trading following the release of quarterly earnings that exceeded analyst expectations. The company reported revenue growth of 112% compared to the prior year period, though it posted a net loss of $626 million, up from $290 million in the year-ago quarter.
The company’s financial position reflects accelerating business momentum. CoreWeave disclosed a revenue backlog of $104 billion, with an additional $25 billion in new commitments announced during the quarter. Active power capacity reached 1.5 gigawatts. Management provided forward guidance of $3.4 billion to $3.6 billion in third-quarter revenue, implying growth of 158% at the midpoint and exceeding the LSEG consensus estimate of $3.43 billion.
For the full year, CoreWeave raised its outlook to $12.4 billion to $13.2 billion in revenue and $960 million to $1.15 billion in adjusted operating income. The company also increased capital expenditure guidance to $35 billion to $39 billion, up from a prior projection of $31 billion to $35 billion. CoreWeave expects to reach over 1.85 gigawatts of active power by year end.
The company operates in a competitive landscape dominated by cloud giants Amazon, Google, and Microsoft, each building data center capacity for generative artificial intelligence applications. During the quarter, CoreWeave secured significant customer commitments, including an additional $21 billion from Meta, a multi-year agreement with Anthropic, and a $6 billion commitment from quantitative trading firm Jane Street. However, CoreWeave remains unprofitable and carries $35 billion in debt on its balance sheet, primarily for Nvidia graphics processing units and infrastructure equipment.
Regulatory headwinds present a potential challenge. New York Governor Kathy Hochul established a data center construction moratorium in July. Company leadership acknowledged the regulatory environment while stating current guidance remains unaffected. Competition also intensified, with SpaceX beginning to sell excess computing capacity and Meta considering a potential cloud business launch. Despite these pressures, CoreWeave executives noted that demand, pricing, and margins continue expanding across their product offerings.
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