CoreWeave bond yield falls to 15.13% as Goldman Sachs upgrades stock
Key Facts
The yield on CoreWeave bonds due in 2031 fell 19.5 basis points to 15.13% on October 19, according to Tradeweb data cited by Reuters, after pressure on the company's debt during the month. On the same day, Goldman Sachs raised its rating on the stock from "neutral" to "buy," the news agency reported. The firm based its upgrade on scarce computing capacity and CoreWeave's performance advantage over rivals. The improvement followed a rise in the cost of insuring the company's debt against default to about 1200 basis points during the week Reuters published a report in mid-October. These debt and equity market moves came during a period that also saw Nvidia's chief executive defend the company's financial strength.
CoreWeave's reported results for the second quarter of 2026 show revenue rising alongside a wider net loss compared with the same period a year earlier. Revenue reached $2.575 billion, compared with $1.212 billion in the second quarter of 2025, according to the company's earnings statement. Net loss, meanwhile, widened to $626 million from $290 million in the corresponding period. On contracts, CoreWeave said contracted revenue yet to be recognized stood at about $104 billion at the end of June 2026. That amount represents revenue tied to contracts that has yet to be recognized, alongside sales the company already recorded during the quarter.
In the third quarter of 2026, CoreWeave signed short-term contracts to provide computing capacity, according to a separate company statement on the new agreements. It put the duration of these contracts at about 3 to 6 months, the term covered by the announced contractual arrangements. It said their pricing equates to annual revenue of about $40 million per megawatt of computing capacity. The company described the basis for calculating this price as "on an annualized revenue basis," while the contracts themselves remain shorter than a year. Alongside these contracts, CoreWeave's relationship with Nvidia includes an agreement to purchase unsold computing capacity, according to Reuters.
The Nvidia agreement was announced in 2025 at a value of $6.3 billion and covers the purchase of any unsold computing capacity at CoreWeave through 2032, according to Reuters. In remarks in Stockholm in mid-October, Nvidia Chief Executive Jensen Huang defended the company. Huang said "CoreWeave's financial strength is improving every day," the news agency reported. CoreWeave shares swung sharply during the mid-October session covered by the Reuters report, falling as much as 8.3% during trading. The stock then reversed course to trade about 5% higher in the latest trading cited in the report, ending its downward trend during the portion of the session covered by the news agency.
On financing, CoreWeave established a program in September 2026 allowing it to sell shares in the market from time to time, according to a company announcement. The program covers up to 35 million shares of Class "A" common stock, with the timing of sales determined by market conditions and capital structure objectives. In the same month, the company announced the pricing of an offering of convertible senior notes with an aggregate principal amount of $3.7 billion. The notes carry an annual interest rate of 2.875%, according to the offering's pricing statement, adding an instrument convertible into shares to the financing tools the company has announced. The issue matures in 2033.