Coreweave, Inc. shares fall over 10% pre-market, currently trading at $87.73.

Coreweave, Inc. shares fall over 10% pre-market, currently trading at $87.73.

CoreWeave, Inc. Shares Drop Over 10% Pre-Market Amid Q4 Earnings Disappointment

CoreWeave, Inc. (CRWV) shares fell more than 10% in pre-market trading on February 27, 2026, declining to $87.73 as investors reacted to the company's Q4 2025 earnings report, which highlighted widening losses despite revenue growth. The stock, which closed at $97.63 on February 26, now trades at a 9.86% discount, reflecting concerns over profitability.

The company reported Q4 revenue of $1.57 billion, exceeding the $1.55 billion estimate, but the result was overshadowed by a net loss of $452 million, or 89 cents per share, worse than the -68 cents per share "whisper number". The net loss margin surged to 29%, up from 7% in the prior year, as costs from an 850MW capacity expansion accelerated. While CoreWeave's revenue backlog grew to $66.8 billion—a key long-term metric— near-term execution risks remain elevated, with $30–35 billion in 2026 capital expenditures planned.

Management attributed the profitability shortfall to front-loaded costs tied to infrastructure scaling, including interest expenses and deployment costs. Adjusted EBITDA for Q4 reached $898 million, reflecting operational efficiency, but the net loss masked underlying challenges. The company guided for a margin trough in Q1 2026, with a recovery to low double-digit margins expected by year-end.

Analysts remain divided, with a price target range of $41 to $251 and an average of $126.93. The stock's sharp decline underscores market skepticism about balancing aggressive growth with profitability, particularly as heavy upfront investments delay breakeven timelines. While CoreWeave's position in AI infrastructure remains strong, the path to sustainable margins will require disciplined capital allocation and execution against its $66.8 billion backlog.

Investors will closely watch Q1 results and subsequent guidance for signs of progress in narrowing the widening gap between revenue growth and profitability.