CoreWeave, an AI infrastructure provider, has revised its annual revenue forecast downward due to delays from data center partners. Despite recording better-than-expected revenue in the third quarter, its stock fell by 6% in after-hours trading. During a conference call following the announcement of the third-quarter results, CFO Nitin Agarwal stated the company’s annual revenue projection is now between $5.05 billion and $5.15 billion, down from the previous estimate of $5.15 billion to $5.35 billion. This is below the analyst estimates of $5.29 billion collected by market research firm LSEG.
Agarwal explained that the revision of the revenue forecast was due to delayed computing capacity delivery to certain customers, caused by scheduling delays at data center partners. However, the total transaction amount remains unchanged as the affected customer agreed to extend the contract expiration date. The names of the impacted customers were not revealed.
CoreWeave’s core business involves renting out data centers equipped with server racks containing thousands of NVIDIA’s high-performance graphics processing units (GPUs) to companies developing, operating, and utilizing AI models. Due to data center delays, the company has also lowered its forecast for annual capital expenditures (CAPEX) from the original $20 billion to $23 billion to a revised $12 billion to $14 billion. The CAPEX originally scheduled for the fourth quarter is now expected to be carried out in the first quarter of next year.
CEO Michael Intrator commented on the delays, stating, “This is a structural issue the industry will face for some time,” but expressed expectations that most delays would be resolved by the first quarter of 2026. Investors have also raised concerns about the company’s revenue structure being concentrated on a few customers and the massive funding required to build AI infrastructure.
Intrator emphasized customer diversification accomplishments, stating that the number of customers exceeding $100 million in revenue over the past 12 months has tripled compared to the previous year. He also noted that no single customer accounts for more than 35% of the company’s revenue backlog, a decrease from 50% last quarter.
In addressing financial aspects, Intrator mentioned that during the third quarter, the company secured new debt and refinanced existing debt under better terms, suggesting efforts to reduce interest expenses. He expressed optimism that CoreWeave could secure funding at lower spreads in the future, given the high regard capital providers have for the company’s top-tier execution capabilities and stable cash flow.
CoreWeave reported impressive third-quarter results, with revenue doubling to $583 million compared to the previous year, driven by expanded partnerships with major AI companies. The net loss for Q3 was $110 million or $0.22 per share, an improvement from the $359 million or $1.82 per share loss reported in the same period last year.
The company’s backlog, representing future revenue from repeat customers, increased to $55.6 billion as of the end of September, aligning with analyst expectations of $50 billion to $60 billion. CoreWeave highlighted that “unprecedented AI demand” was reflected in its performance, with the company securing a $14.2 billion contract with Meta, an additional $6.5 billion deal with OpenAI, and a new agreement with an undisclosed major hyperscaler, marking its sixth large contract.
On the day, CoreWeave’s stock closed at $105.61 on the New York Stock Exchange, up 1.54% from the previous trading day. However, it dropped 6.02% in after-hours trading following the conference call. NVIDIA holds approximately 7% of CoreWeave’s shares.