CoreWeave raises 2026 revenue forecast to US$13.3 billion as AI cloud demand defies debt concerns
CoreWeave beat Wall Street estimates with S$3.66 billion in third-quarter revenue, a 170 per cent surge, and lifted its 2026 revenue forecast to between US$13.0 billion and US$13.3 billion. The Nvidia-backed company, which carries US$46.9 billion in total debt, also raised its annual spending target
CoreWeave beat Wall Street estimates for quarterly revenue and raised its annual forecasts on Tuesday, signaling strong demand for its cloud services and easing concerns after a steep selloff over the company's massive debt. Shares of the company were last down about 4 per cent in volatile extended trading as investors weighed the revenue surge and concerns over the increase in its annual spending target.
CoreWeave last month emerged as the focal point of growing AI bubble fears, with investors worried about heavy borrowing against the backdrop of rising interest rates to fund purchases of chips, land and energy for AI data centers that generate little return until they are leased. Its stock has crashed more than 40 per cent in the past month in a selloff that triggered a broader crisis of confidence in the AI trade.
The US$27 billion Nvidia-backed CoreWeave has never turned a profit, according to data compiled by LSEG, and had about US$46.9 billion in total debt as of the end of September. CoreWeave CEO Mike Intrator sought to ease some of those concerns on Tuesday, disclosing that the AI cloud company had US$9 billion in customer prepayments and deposits that are expected to flow in over the next three months.
"Customer contracts come first, and investment follows. Because CoreWeave's investments are tied to committed demand, lenders have something concrete to lend against and customers typically help fund the buildout," he said in a statement. CoreWeave's contracted revenue backlog stood at US$132.5 billion at the end of September, rising from US$104 billion at the end of June.
At the same time, its quarterly capital spending jumped to US$14.5 billion from US$9.4 billion in the prior quarter. Recent earnings reports from hyperscalers also hinted at delays in data-center projects and a slower ramp in spending. Among CoreWeave's stacked roster of customers are Microsoft, Meta, OpenAI and Anthropic.
CoreWeave now expects 2026 revenue between US$13.0 billion and US$13.3 billion, from US$12.4 billion to US$13.2 billion earlier. It also lifted the lower end of its annual spending target by US$2 billion, now projecting spending of US$37 billion to US$39 billion. Its third-quarter revenue surged nearly 170 per cent to US$3.66 billion, beating estimates of US$3.55 billion, while a per-share loss of 95 cents came in smaller than estimates for a US$1.16 loss, according to data from LSEG.
