CoreWeave Boosts 2026 Revenue Outlook to $13.3B, Shares Bounce Back

CoreWeave (CRWV) shares climbed 7.9% in after-hours trading Tuesday to $52.58, recovering from a $48.73 close. The company raised its 2026 revenue forecast just days after an artificial intelligence-driven selloff pushed the stock to a 52-week trough.

The improvement carried a larger debt burden. Net interest costs widened to $846 million, compared with $310 million in the same period last year. Operating income of $207 million fell short of covering those expenses, resulting in a net loss of $709 million.

CoreWeave Stock Rebounds After Beating Earnings Estimates

The third-quarter results surpassed expectations on all key metrics. Below are the main numbers.

• Third-quarter revenue reached $3.66 billion, roughly 168% higher than a year earlier. That figure exceeded the company's own forecast range of $3.45 billion to $3.60 billion.
• Analysts surveyed by Zacks had projected a net loss of $1.45 per share, according to CoreWeave's earnings preview. The actual net loss was $1.27 per share.
• The revenue backlog, representing contracted income still to be recognised, grew to about $132.5 billion from $104 billion in June.
• Full-year revenue guidance has been set at $13 billion to $13.3 billion. The midpoint of its adjusted operating income target rose 26%, to a range of $1.275 billion to $1.375 billion.

The recovery followed a difficult period. On November 5, CoreWeave's stock dropped 9.83% to a 52-week low of $40.58.

That same day, the Nasdaq-100 fell 6.36% amid a broad AI stock selloff. Fundstrat's Tom Lee attributed the decline to concerns that a Democratic-controlled Congress would limit AI spending.

Demand remained strong during the quarter, but the company expects its interest costs to continue rising.

Can $9 Billion in Prepayments Reduce the Debt Pressure?

Interest expense in the third quarter totalled $846 million, below the company's own forecast of $860 million to $940 million. However, CoreWeave anticipates fourth-quarter interest expense will increase to between $1.05 billion and $1.15 billion.

Capital expenditure is also rising. CoreWeave now projects $37 billion to $39 billion for 2026, up from a previous low end of $35 billion.

CEO Michael Intrator stated that the company expects approximately $9 billion in customer prepayments and deposits within three months.

Intrator said prepayments and hardware partner financing would cover most of its 2027 capital requirements. The company will also raise "a limited amount," he added.

CFO Nitin Agrawal said CoreWeave does not plan to issue additional unsecured parent-level debt at current yields through 2027. It still intends to raise new debt tied to customer contracts in the coming weeks.

Rival Nebius (NBIS) reports on Thursday, providing another indication of demand for rented AI computing power. For CoreWeave, the key challenge is whether revenue can outpace the growth in its interest bill. Over the past year, interest expense rose 173%, slightly ahead of revenue's 168% gain.