CoreWeave (CRWV) stock rose 7.9% to $52.58 in after-hours trading on Tuesday, up from a $48.73 close. The company lifted its 2026 outlook days after an AI selloff sent shares to a 52-week low.
The growth came with a heavier debt bill. Net interest costs rose to $846 million from $310 million a year earlier. Operating income of $207 million could not cover them, leaving a net loss of $709 million.
Sponsored
Sponsored
CoreWeave Stock Performance After Earnings. Source: Google Finance
Follow us on X to get the latest news as it happens
CoreWeave Stock Bounces After Earnings Beat
The third-quarter report topped expectations across its main measures. Here are the key figures.
- Third-quarter revenue reached $3.66 billion, up about 168% from a year earlier. That cleared the top of the companys own $3.45 billion to $3.60 billion forecast.
- Analysts tracked by Zacks had expected a $1.45 loss per share, the CoreWeave earnings preview showed. The actual net loss came to $1.27 per share.
- Revenue backlog, or contracted revenue still to be recognized, rose to about $132.5 billion from $104 billion in June.
- Full-year revenue guidance now stands at $13 billion to $13.3 billion. Its adjusted operating income target rose 26% at the midpoint, to $1.275 billion to $1.375 billion.
The rebound followed a rough week. On November 5, CoreWeave stock fell 9.83% to a 52-week low of $40.58.
That day, the Nasdaq-100 dropped 6.36% in a broad AI stock rout. Fundstrats Tom Lee tied the selloff to fears that a Democratic Congress would curb AI spending.
Demand held up in the quarter, but the company expects its interest bill to keep climbing.
Sponsored
Sponsored
Can $9 Billion in Prepayments Ease the Debt Strain？
Third-quarter interest expense of $846 million came in below the companys own $860 million to $940 million forecast. However, CoreWeave expects fourth-quarter interest expense to rise to $1.05 billion to $1.15 billion.
Capital spending is also heading higher. CoreWeave now guides $37 billion to $39 billion for 2026, raising the low end from $35 billion.
CEO Michael Intrator said CoreWeave expects about $9 billion in customer prepayments and deposits within three months.
He said prepayments and hardware partner financing would cover most of its 2027 capital needs. The company will also raise “a limited amount,” he added.
CFO Nitin Agrawal said CoreWeave does not intend to issue more unsecured parent-level debt at current yields through 2027. It still plans new debt tied to customer contracts in the coming weeks.
Rival Nebius (NBIS) reports Thursday, giving a second read on demand for rented AI computing power. For CoreWeave, the test is whether revenue can grow faster than its interest bill. Over the past year, interest expense rose 173%, slightly ahead of revenues 168% gain.