CoreWeave Reports 134% Revenue Growth but Shares Drop in Extended Trading

CoreWeave, an AI infrastructure provider, reported a 134% increase in third-quarter revenue, reaching $583.9 million, compared to the previous year. The net loss narrowed to $110 million from $360 million in the same quarter last year. Despite better-than-expected results, shares fell by up to 7% in extended trading. The company's growth is driven by the rapid expansion of AI buildout and its business with major cloud infrastructure providers like Google and Microsoft. CoreWeave's backlog is now $55.6 billion, with 2.9 gigawatts of contracted power, up from 2.2 gigawatts as of June 30. In the recent quarter, CoreWeave announced a $6.5 billion expansion with OpenAI and a six-year deal with Metaworth worth up to $14.2 billion. Additionally, CoreWeave secured its sixth contract with a leading hyperscaler. CEO Mike Intrator stated that the current shortage is due to the limited availability of partly completed data centers, not power. CoreWeave went public on Nasdaq in March, with shares initially priced at $40; by Monday, the stock had risen to $105.61, marking a 164% return. The company's capital expenditures for 2026 are expected to more than double from the 2025 total, which is projected to be between $1.2 billion and $1.4 billion.

On Tuesday, CoreWeave released its quarterly earnings report, revealing that both revenue and forward guidance exceeded analysts’ expectations. The strong results were fueled by heightened demand in the artificial intelligence sector. However, despite surpassing projections, the company’s stock price dropped sharply after the announcement due to a net loss that was larger than anticipated.

While specific revenue and loss figures were not disclosed in the brief summary, the upbeat sales performance and optimistic forecast were overshadowed by the scale of the loss, which rattled investor confidence. The incident illustrates how market sentiment can be more heavily influenced by profitability concerns than by growth metrics alone, even in high-growth industries like artificial intelligence.

CoreWeave recently reported quarterly earnings that surpassed analysts’ expectations for both revenue and forward guidance. However, despite the strong top-line performance and optimistic outlook, the stock price fell following the announcement. The decline was attributed to larger-than-expected losses, although specific figures for revenue, earnings, and losses were not disclosed. Market reactions highlighted the tension between robust sales growth and investor concerns over widening losses.