CoreWeave (CRWV) Stock Slides 5% Despite Strong Q1 Results on Weak Q2 Outlook

Quick Overview

• First-quarter revenue reached $2.08 billion, a 112% annual increase that exceeded the $1.97 billion forecast
• Second-quarter revenue projection of $2.45B–$2.60B fell short of the $2.69 billion analyst consensus
• Net losses expanded to $740 million compared to $315 million in the prior-year period
• The company’s revenue backlog surged to approximately $100 billion, climbing $33 billion quarter-over-quarter
• Shares declined more than 5% during Friday’s premarket session

Despite delivering impressive triple-digit revenue expansion once again, CoreWeave couldn’t sustain investor enthusiasm. Shares tumbled over 5% in Friday’s premarket hours following the company’s disappointing second-quarter revenue projections.

CoreWeave, Inc. Class A Common Stock, CRWV

First-quarter results showed revenue of $2.08 billion, representing a 112% surge compared to last year and surpassing the Street’s $1.97 billion projection. However, the strong top-line performance was quickly eclipsed by below-consensus profitability metrics and a second-quarter outlook that underwhelmed analysts.

Management projected second-quarter revenue ranging from $2.45 billion to $2.60 billion. Wall Street had anticipated $2.69 billion. This shortfall was sufficient to pressure shares when the forecast was unveiled during Thursday afternoon’s earnings discussion.

The quarter’s net loss ballooned to $740 million, escalating from $315 million during the comparable quarter last year. Interest expenses alone totaled $536 million — representing 26% of quarterly revenue.

Per-share losses reached $1.40. Although this represents a modest improvement from the $1.49 recorded a year earlier, it still fell short of the $0.91 analyst projection.

Investment Spending Accelerates

Full-year capital expenditure projections were increased by approximately $500 million at the midpoint, now ranging between $31 billion and $35 billion. Leadership attributed the adjustment to elevated component costs. The company deployed nearly $7 billion during Q1, with expectations for another $7 billion to $9 billion in Q2.

CoreWeave closed the first quarter carrying $25 billion in outstanding debt alongside $10 billion in lease obligations. Additionally, the firm has locked in $38.5 billion worth of future lease commitments. Throughout 2026, CoreWeave has secured more than $21 billion through various financing mechanisms including equity offerings, credit facilities, and bond issuances.

The company’s largest recent financing arrangement features a floating interest rate near 6%, marking an improvement. The blended interest rate has decreased by 0.8 percentage points this year, following a three-point reduction in 2025.

Order Book Expansion Continues

A particularly noteworthy metric: the revenue backlog now approaches $100 billion, having grown by $33 billion during the past three months alone. CEO Michael Intrator characterized it as the company’s most successful bookings quarter on record.

Microsoft continues as the primary customer, representing approximately two-thirds of 2025 revenue. However, expanding partnerships with Meta Platforms and OpenAI are gaining momentum, positioning the company to diversify its revenue streams moving forward.

Jefferies analysts highlighted the anticipated second-half profitability acceleration as a critical watchpoint — management projects just $81 million in adjusted operating profit during the first six months, compared to $919 million in the latter half. Achieving this dramatic improvement will be essential for management credibility.

The firm also crossed the threshold of 1 gigawatt in operational power capacity and has established a target exceeding 8 GW by 2030.

Full-year revenue and profitability guidance remained steady, with only capital expenditure ranges receiving adjustments. Wall Street currently forecasts annual revenue of $12.5 billion for the year.

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