CoreWeave shares jump 10% as quarterly revenue reaches $3.661 billion
Key Facts
CoreWeave shares jumped 10% on Wednesday, November 11, after the company’s quarterly results lifted stocks of cloud computing companies tied to artificial intelligence, according to Reuters. Nvidia shares rose 5%, while other AI infrastructure stocks gained between 4.7% and 11.8% in premarket trading, the report said. The move followed CoreWeave’s November 10 announcement that third-quarter revenue reached $3.661 billion, compared with $1.365 billion a year earlier. The results also showed a net loss of $709 million, versus $110 million in the same period. The gains came after a month in which CoreWeave shares fell more than 40% through November 10, amid concerns about heavy borrowing to fund data centers and the speed at which investments would generate returns.
Quarterly revenue rose alongside an expansion in the company’s commercial commitments. Its revenue backlog stood at about $132.5 billion on September 30, according to a CoreWeave statement. The backlog includes remaining performance obligations and amounts the company expects to recognize in the future under customer contracts. Recognition of this revenue depends on delivery and service availability, the company explained. These execution constraints put the backlog in the context of the company’s ability to convert contracts into actual services and revenue as it continues to build the required infrastructure.
CoreWeave expects capital expenditure of between $37 billion and $39 billion in fiscal 2026, after raising the lower end of its previous range of $35 billion to $39 billion. The company said the higher floor reflects its expectation that infrastructure will be deployed and delivered to customers ahead of schedule. Capital expenditure reached $14.5 billion in the third quarter, up from $9.4 billion in the previous quarter, according to Reuters. Total debt was also about $46.9 billion at the end of September. Against this backdrop of expansion, the company said cash flows from existing contracts would cover repayment of current and future debt, and that it did not intend to tap the unsecured debt markets, according to Reuters.
The company says qualified demand is about 10 times available capacity and that it has sold most of its capacity through next year, according to Reuters. It linked its capital expenditure to adding the capacity needed to meet that demand. It expects active operating capacity to exceed 1.85 gigawatts by the end of 2026. It also raised its annualized revenue run-rate forecast to a range of $20 billion to $21 billion. Reuters reported that the CEO expects adjusted profitability in the first half of 2028 and said the company sees no need to borrow in the unsecured debt markets at current yields.
CoreWeave expects to collect about $9 billion in customer prepayments and deposits during the three months following its November 10 results announcement. The company said its growth also relies on financing backed by customer contracts and operating cash flow. These expected inflows come alongside the revenue backlog and substantial spending to expand operating capacity. On another aspect of the expansion, the CEO told Reuters that community and regulatory scrutiny of data centers could slow the pace of construction. But he does not expect this to force a fundamental change in how infrastructure is built or distort expansion costs.
The company’s results came on the day U.S. inflation data for October were released. The consumer price index rose 0.4% month on month, after increasing 0.6% in September, according to the Bureau of Labor Statistics. The index excluding food and energy rose 0.3% in October, the same increase recorded in September and August. The food index rose 0.5%, while the energy index gained 0.7% after a 5.2% increase in September. The bureau did not publish the 12-month change for series missing October 2025 data, as data for that month were not collected because of a lapse in appropriations.
The Federal Reserve kept its target interest rate range at 3.75% to 4% on October 28, in a 10-to-2 vote. The two dissenting members preferred a quarter-percentage-point increase in the range, according to the central bank’s statement. The Federal Open Market Committee’s next meeting is scheduled for December 8 and 9, 2026. The board is scheduled to hold its press conference on December 9. These dates put inflation data and results from AI infrastructure companies among the upcoming milestones for investors to watch.