CoreWeave 2025 Q3 Earnings Revenue Surges 134% as Net Loss Narrows 69.4%

CoreWeave (CRWV) reported Q3 2025 earnings that beat revenue expectations but cut full-year guidance, reflecting a mix of strong demand and operational challenges. The stock fell sharply post-earnings as analysts revised price targets lower.

Revenue

CoreWeave’s total revenue surged 134% year-over-year to $1.36 billion, far exceeding the $1.29 billion analyst estimate. This marks a significant acceleration from $583.94 million in Q3 2024, driven by robust demand for AI cloud services and large-scale client contracts.

Earnings/Net Income

The company narrowed its net loss to $110.12 million in Q3 2025, a 69.4% improvement from the $359.81 million loss in Q3 2024. Earnings per share improved to a loss of $0.22, up from $1.82 per share a year earlier. The reduction in losses underscores progress in cost management but highlights ongoing profitability challenges.

Post-Earnings Price Action Review

The strategy of buying CoreWeave (CRWV) shares upon revenue misses and holding for 30 days resulted in a 6.4% loss, significantly underperforming the market. The stock dropped 6% in after-hours trading despite a strong revenue beat, as the full-year guidance cut and data center delays dampened investor sentiment. Holding CRWV for 30 days post-earnings led to a $6.4 million loss for an investor entering at $105.61 on November 11, 2025, and exiting at $99.17 by December 11, 2025. Jefferies lowered its price target to $155, reflecting heightened caution. The stock’s volatility underscores the risks of rigid buy-and-hold strategies in a sector prone to rapid shifts in guidance and infrastructure execution. Investors are advised to adopt flexible tactics, such as stop-loss orders or shorter holding periods, to mitigate risks tied to project delays and capital-intensive growth.

CEO Commentary

Michael Intrator, CEO, emphasized CoreWeave’s Q3 revenue of $1.36 billion and $55.6 billion backlog, driven by AI cloud demand. He highlighted 120 MW sequential power growth and 2.9 gigawatts of contracted capacity, with 1–2 years to deployment. Despite supply chain delays at a third-party data center, customer flexibility preserved contract value. Strategic priorities include self-build projects, AI Object Storage innovation, and customer diversification.

Guidance

CoreWeave guided 2025 revenue to $5.05–5.15 billion, below the prior $5.15–5.35 billion range, citing data center delays. Adjusted operating income is projected at $690–720 million, with CapEx of $12–14 billion. CFO Nitin Agrawal noted Q4 margin pressure from delayed costs but expects Q1 2026 recovery. 2026 CapEx is expected to exceed 2025’s by more than double.

Additional News

1. M&A Activity: CoreWeave’s $9 billion acquisition of Core Scientific was rejected by shareholders, halting the deal.

2. Partnerships: The company secured a $14.2 billion six-year contract with Meta and expanded its OpenAI partnership by $6.5 billion, totaling $22.4 billion.

3. Analyst Downgrades: JPMorgan downgraded CoreWeave to Neutral with a $110 price target from $135, citing supply chain uncertainties.