CoreWeave jumps 22.98% after raising revenue outlook to $13.3 billion

Key Facts

CoreWeave shares rose 22.98% in trading on November 11, after the company reported third-quarter results the previous day and raised its full-year outlook for revenue and adjusted operating income. Revenue for the three months ended September 30 was $3.661 billion, compared with $1.365 billion in the same period of 2025. But the quarter also recorded a net loss of $709 million, versus $110 million a year earlier. The company said revenue increased by more than $1 billion quarter over quarter, and adjusted operating income margin reached double digits a quarter ahead of plan. The stock's advance came as neocloud shares rebounded, while investors' questions about the cost of expansion and financing remained in view.

CoreWeave raised its fiscal 2026 revenue forecast range to $13.0–13.3 billion and increased its outlook for adjusted operating income to $1.275–1.375 billion. The revision reflects the company's estimate of business growth, but came alongside an expected increase in infrastructure spending. The company raised its 2026 capital expenditure guidance to $37–39 billion, saying this was tied to expectations of deploying infrastructure and delivering it to customers faster than planned. Chief Executive Michael Intrator said revenue grew by more than $1 billion compared with the previous quarter, and adjusted operating income margin reached double digits ahead of schedule. Adjusted operating income was $379 million, with a 10% margin, compared with $217 million and a 16% margin in the third quarter of 2025.

Other profitability measures presented a mixed picture: adjusted earnings before interest, taxes, depreciation and amortization were $2.256 billion, with a 62% margin in the third quarter. By contrast, the net loss widened to $709 million from $110 million a year earlier, and diluted loss per share was $1.27 versus $0.22. The company expects fourth-quarter 2026 interest expense to reach $1.05–1.15 billion. It also said it expects to receive about $9 billion in customer payments and prepayments during the three months after the results announcement. Those payments are among funding sources that include financing backed by customer contracts and operating cash flow, while the company said it would not turn to unsecured debt markets after borrowing costs rose.

The remaining contracted revenue balance was about $132.5 billion as of September 30, while the company added more than 200 megawatts of active power during the quarter, bringing the total to more than 1.7 gigawatts. CoreWeave said its active footprint had doubled since the start of the year, signaling the pace of operational capacity expansion to meet demand. The company tied the increase in capital spending to accelerating infrastructure deployment and customer delivery, while saying cash flows from existing contracts would cover current and future debt payments. Bernstein said the results were close to the best that could be expected, describing the figures as "good to excellent" while addressing financing concerns. But reliance on debt-funded expansion remained a source of concern for the sector if demand for artificial intelligence slows.

The rebound extended to Nebius and Iren shares in premarket trading, after weeks of turmoil in the sector amid concerns that debt financing for data center expansion could backfire if demand for artificial intelligence slows. Sector companies also faced pressure from proposals to tighten regulation and halt construction of new data centers, including in Texas, following the midterm elections. Intrator said increased scrutiny could slow data center construction across the sector, but he does not expect it to materially change CoreWeave's expansion plans or increase its costs. These positions leave some regulatory risk in play alongside financing questions, despite the market's positive response to the results and new guidance. Nebius is scheduled to report results before the market opens on Thursday, November 12, in an event investors are watching to gauge whether optimism is spreading to other neocloud companies.