Gotrade News - CoreWeave posted fourth-quarter 2025 revenue of $1.57 billion, narrowly topping analyst estimates of $1.55 billion. But the modest beat wasn't enough to save the stock after the company unveiled a massive capex ramp-up and widening net losses.
CRWV shares tanked roughly 10% in after-hours trading on Thursday (02/26). According to Benzinga, shares were changing hands at $92.60 at publication time, down 5.15% from the closing price.
Key Takeaways
- CoreWeave plans to spend at least $30 billion in capex for 2026, doubling last year's $14.9 billion
- Net losses ballooned to $284 million in Q4, up from just $36 million in the same period a year ago
- Revenue backlog surged to $66.8 billion, but analysts flagged concerns over execution risk and debt load
Revenue more than doubled on a year-over-year basis, which sounds great on paper. However, the adjusted loss came in at 56 cents per share, missing estimates that called for a 50-cent loss, according to Benzinga Pro.
CoreWeave CEO and co-founder Michael Intrator told analysts on an earnings call that 2026 capex is projected at a minimum of $30 billion. That's a jaw-dropping two-fold jump from the $14.9 billion the company shelled out in 2025, as reported by Reuters.
Big Ambitions, Bigger Red Flags
CoreWeave has carved out a niche as a more specialized and cost-effective cloud alternative to hyperscalers like Microsoft and Alphabet's Google. The company serves the heavy-duty compute needs required to train and run cutting-edge AI models.
Still, CoreWeave leans heavily on a handful of major clients, including Microsoft and OpenAI. That kind of customer concentration is a real sticking point for investors worried about long-term resilience.
D.A. Davidson analyst Alexander Platt pointed to lingering concerns around backlog risk, debt, and cost of capital. CoreWeave's revenue backlog stood at $66.8 billion as of December 2025, up from $15.1 billion a year earlier, according to Reuters.
Shrinking Margins, But Heavy Hitters Still Backing the Bet
CoreWeave's adjusted operating income margin slid to 6% in Q4, down from 16% in the year-ago quarter. Operating expenses clocked in at $1.66 billion for the period, per Benzinga's report.
On the flip side, Nvidia dropped $2 billion into CoreWeave back in January, becoming the AI infrastructure firm's second-largest shareholder. That vote of confidence from the GPU giant carries serious weight, as reported by Reuters.
CoreWeave CFO Nitin Agrawal said the company is well-positioned for sustained hypergrowth going forward. It's worth noting that CoreWeave originally built its GPU infrastructure for large-scale crypto mining before pivoting to AI cloud services.
Despite the revenue beat, the market clearly zeroed in on the ballooning losses and aggressive spending plans. All eyes are now on whether that $66.8 billion backlog can actually translate into profitable growth down the road.
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Reference:
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Reuters, CoreWeave slides as surging capex, backlog risks overshadow small revenue beat. Accessed on February 27, 2026
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Benzinga, CoreWeave Stock Slides On Mixed Q4 Earnings Despite Signaling 'Hypergrowth' Ahead. Accessed on February 27, 2026
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Featured Image: Reuters
