CoreWeave Raises Expected 2026 Capital Spending to $39 Billion Amid Funding Pressure
Key Facts
CoreWeave raised its 2026 capital spending forecast to a range of $35 billion to $39 billion, from $31 billion to $35 billion previously, as interest costs nearly doubled and its net loss widened. The company said second-quarter revenue, for the period ended June 30, was $2.575 billion, compared with $1.212 billion in the same period last year. But net interest expense rose to $640 million from $267 million, and the net loss increased to $626 million from $290 million. Capital spending was $9.4 billion in the quarter, compared with $6.8 billion in the first quarter. The figures put the company’s ability to finance the expansion needed to meet strong demand to the test, as the cost of borrowing that supports the expansion rises.
Remaining performance obligations totaled about $104 billion on June 30, according to a CoreWeave filing, excluding more than $25 billion in new customer commitments added at the start of the third quarter. Reuters estimated the balance at $104.2 billion in the second quarter, up from $99.4 billion in the first quarter, and noted additional commitments exceeding $25 billion by August 11. The company said, however, that the balance is subject to delivery requirements and service availability, tying the timing of converting contracts into revenue to building operational capacity. Active capacity stood at 1.5 gigawatts at the end of the second quarter, after about 500 megawatts were added during the period. Contracted capacity also rose to about 4.2 gigawatts on August 11, from 3.7 gigawatts at the end of June.
In the first half of 2026, CoreWeave generated $3.663 billion in net cash from operating activities, after using $190 million in the same period a year earlier. Meanwhile, purchases of property and equipment, including software developed for internal use, totaled $14.117 billion. The gap highlights the financing needed to build infrastructure alongside revenue growth, even as operating cash flow improves. The company said its 2026 revenue forecast is between $12.4 billion and $13.2 billion, while it expects revenue of $3.45 billion to $3.60 billion in the third quarter. In its filing, it said future investments may require significant debt or equity financing.
CoreWeave’s total principal amount of future debt payments due stood at $35.551 billion on June 30, a figure that differs from Reuters’ broader estimate of the company’s debt at about $50 billion. The company had $5.524 billion in cash and cash equivalents at that date, and total liquidity of $15.553 billion, including available credit facilities. On August 10, it closed a $2.6 billion term loan facility, with an approximate maturity of five years and pricing at the Secured Overnight Financing Rate plus 5.50%. The company said customer contracts tied to the facility had an average term of about three years, and that the structure enables it to finance shorter-term obligations. In the week beginning October 16, the value of bonds issued by the company in June fell, pushing their yield up from 9.675% at issuance to 15%.
Funding concerns also reflect the sector’s ability to turn infrastructure spending into revenue that justifies its cost. Gartner forecast that more than 80% of new cloud computing providers will cease operating independently by 2030, citing cost pressures and the lack of a differentiated business model. In a separate warning, Elon Musk said on Sunday that more than 200 such companies face failures and mergers, adding: "More than 200 new cloud computing companies will see failures and consolidation at the small-fish level. Some will survive, but not many." A CoreWeave spokesperson told Reuters the company still sees opportunities to finance its growth. Chief Executive Mike Intrator had said in a memo to employees that the deal backlog "supports our debt obligations by more than required."
In trading on Monday, October 26, CoreWeave shares fell 1.6%, Nebius dropped 4%, and IREN lost 1.5%, according to Reuters, as shares of new cloud computing companies declined after Musk’s comments. The news agency linked the move to those comments and to concerns about the gap between investment in AI infrastructure and revenue generation, without attributing the movement to a single cause. CoreWeave had raised its 2026 capital spending forecast, while its backlog remained subject to delivery and service availability. The company said its current liquidity and borrowing availability are sufficient to cover obligations due within a year. Investors are now turning their attention to third-quarter results, for which the company set a revenue range of $3.45 billion to $3.60 billion.