CoreWeave Stock Plummets Following Disappointing Revenue Guidance

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CoreWeave stock faced a notable drop in after-hours trading, falling by 8% following the company’s release of its first-quarter revenue guidance, which fell short of analyst expectations. The artificial intelligence-focused cloud infrastructure provider reported a projected revenue of between $1.9 billion and $2 billion, while analysts had anticipated a much higher figure of approximately $2.29 billion.

Financial Performance Compared to Expectations

In its recent earnings announcement, CoreWeave revealed a loss of 89 cents per share. This outcome was significantly worse than the loss of 49 cents that analysts had projected, according to LSEG consensus. On a positive note, the company’s revenue for the latest quarter was reported at $1.57 billion, slightly above the consensus estimate of $1.55 billion. Additionally, it showcased a robust revenue growth of 110% year-over-year for the fourth quarter.

Looking Ahead: Goals and Projections

For the entirety of 2026, CoreWeave aims to generate between $12 billion and $13 billion in revenue, in line with analyst expectations of approximately $12.09 billion. The company also projected an increase in capital expenditures to a whopping $30 billion to $35 billion for 2026, a considerable leap from $10.31 billion recorded in 2025.

CoreWeave’s CEO, Mike Intrator, mentioned during a conference call that the supply of Nvidia graphics chips remains tight, which remains a critical component of CoreWeave’s operations. The average prices for Nvidia’s H100 processors were within 10% of where they started the year, with older A100 prices seeing an increase in 2025.

Power Capacity and Infrastructure Developments

As of the end of 2025, CoreWeave had 850 megawatts in active power capacity, with contracted power totaling 3.1 gigawatts. This performance exceeded the analysts’ projections of about 827 megawatts. Furthermore, the company is planning to enhance its capabilities to over 1.7 gigawatts by the end of 2026, surpassing prior estimates from Visible Alpha, which projected only 1.59 gigawatts.

Strategic Partnerships and Future Services

In response to the growing demand for infrastructure, CoreWeave recently launched an object storage service to strengthen its competitive position against larger players like Amazon Web Services. The decision aligns with the company’s intent to cater to an expanding array of clients across various sectors, as businesses increasingly seek to enhance their AI capabilities.

CoreWeave’s recent partnership with model builder Poolside underscores its commitment to leading the AI cloud services market. To support its rapid expansion, the company has increased its credit facility from $1.5 billion to $2.5 billion, further illustrating its proactive approach to meeting client demands.

Market Sentiment and Future Implications

Despite the drop in stock price following the revenue guidance news, CoreWeave has outperformed the broader market trends in 2026. As of the most recent trading, CoreWeave stock had gained about 36% year-to-date, contrasting sharply with the iShares Expanded Tech-Software Sector Exchange-Traded Fund, which has seen a decline of nearly 22% in the same period. Analysts remain optimistic about the long-term growth prospects of CoreWeave as it navigates through this challenging landscape.

Conclusion

CoreWeave stock remains a focal point for investors as the company adapts to the dynamic needs of the technology landscape. With its ambitious growth plans and strategic initiatives, CoreWeave aims to solidify its position within the competitive AI and cloud infrastructure sectors. Investors and market watchers will be keen to monitor its forthcoming performance metrics and their impact on company valuation moving forward.

FAQs

What caused the drop in CoreWeave stock?

The stock dropped due to the company issuing revenue guidance for Q1 2026 that was below analyst expectations.

How does CoreWeave plan to improve its revenue?

CoreWeave plans to increase capital expenditures significantly and has launched new services, including an object storage service, to attract more clients.

What is the long-term outlook for CoreWeave?

Despite the recent stock drop, CoreWeave has seen substantial year-to-date gains and remains optimistic about achieving its revenue targets for the full year.

Who are CoreWeave’s primary clients?

CoreWeave supplies AI model makers such as Google and OpenAI.

What expansion plans does CoreWeave have for its infrastructure?

The company plans to increase its active power capacity to more than 1.7 gigawatts by the end of 2026.