CoreWeave reported its fourth-quarter earnings for 2025, highlighting strong revenue growth but signaling cautious near-term guidance that impacted investor sentiment. The artificial intelligence-focused cloud infrastructure provider posted revenue of $1.57 billion, slightly above the $1.55 billion consensus, yet shares declined 8% in after-hours trading due to weaker-than-expected earnings per share and conservative revenue outlook.
The company recorded a loss of 89 cents per share, exceeding the anticipated loss of 49 cents. CoreWeave’s revenue surged 110% year over year, reflecting robust demand in AI cloud infrastructure. However, the firm projected first-quarter revenue between $1.9 billion and $2 billion, falling short of the $2.29 billion expected by analysts surveyed by LSEG.
Strong Revenue Growth and Expanding Capacity
CoreWeave ended the year with 850 megawatts of active power capacity, surpassing analyst expectations of 827 megawatts. Contracted power capacity reached 3.1 gigawatts, demonstrating the company’s ongoing expansion in infrastructure to meet growing AI demand. The firm plans to increase active power capacity to over 1.7 gigawatts by the end of 2026, exceeding Visible Alpha’s consensus estimate of 1.59 gigawatts.
The company also announced an ambitious capital expenditure plan of $30 billion to $35 billion for 2026, a significant rise from $10.31 billion in 2025. CoreWeave aims to add more than five gigawatts beyond its contracted footprint by 2030 to support widespread AI adoption across various sectors.
Pricing Stability in Key Components
CEO Mike Intrator noted continued supply constraints of Nvidia graphics chips, which underpin CoreWeave’s core offerings. Prices of Nvidia’s H100 processors remained stable within 10% of the levels at the start of the year. Interestingly, prices for older A100 chips increased, highlighting the tight supply environment.
Backlog and Contract Duration Metrics
The company’s revenue backlog expanded to $66.8 billion from $55.6 billion the prior quarter. Weighted contract lengths also extended to five years from four, indicating increasing long-term customer commitments. Adjusted EBITDA amounted to $898 million, slightly below StreetAccount’s consensus of $929 million.
Intrator emphasized that CoreWeave is intentionally accelerating capacity buildout to meet urgent client demand, accepting a short-term margin impact in exchange for capturing growth opportunities. The firm resolved previously disclosed data center delays by mobilizing technicians across its portfolio and engaging external vendors.
Market and Industry Context
CoreWeave’s customer base includes leading AI model developers such as Google and OpenAI. Despite recent volatility in software and AI stocks, CoreWeave’s shares were up 36% in 2026 trading before the earnings release. This contrasts with the iShares Expanded Tech-Software Sector ETF, which declined nearly 22% during the same period.
During the quarter, CoreWeave also expanded its service offerings by introducing an object storage service and securing a partnership deal with AI model builder Poolside. Additionally, the company increased its credit facility to $2.5 billion from $1.5 billion, enhancing financial flexibility.
Competitive Position and Future Outlook
While primarily a specialist in cloud infrastructure for AI workloads, CoreWeave is taking steps to challenge major cloud service providers like Amazon Web Services through new product launches. Intrator highlighted how AI demand is broadening from hyperscaler clouds and foundational AI models into enterprises and sovereign clients, fueling the company’s expansion plans.
CoreWeave ended 2025 with $21.37 billion in debt, reflecting its rapid scaling efforts post-IPO. The firm expects total 2026 revenue to reach between $12 billion and $13 billion, aligning with analyst forecasts. This cautious optimism underscores management’s focus on balancing growth with operational execution amid industry headwinds.
Overall, CoreWeave’s Q4 report signals strong business momentum and a well-capitalized strategy to meet accelerating AI infrastructure demand, even as challenges in component supply and short-term profitability remain. Investors will watch upcoming quarters to assess the company’s ability to sustain growth while navigating industry dynamics and pricing pressures.
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