CoreWeave's revenue grew by almost 170% - the company raised its annual forecast

AI infrastructure provider CoreWeave exceeded analysts' expectations with its third-quarter revenue and raised its full-year forecast. The results somewhat eased investor concerns over the company's growing debt, though higher expenses kept pressure on the share price.

The company's shares fell roughly 4% in extended trading amid high volatility. Investors, on one hand, welcomed the sharp growth in revenue, while on the other, focused on the increased annual expenditure forecast.

High Debt and AI Bubble Fears

Over the past month, CoreWeave became one of the leading examples of growing concerns about a possible bubble in the AI sector. Investor doubts are fueled by the company's massive borrowing. CoreWeave uses borrowed funds to purchase chips, land plots and energy infrastructure in order to build AI data centers. Significant revenue from these projects, however, typically only begins once the infrastructure is leased out to customers.

Over the past month alone, the company's shares lost more than 40% of their value, contributing to a broader crisis of investor confidence in the AI sector. Additionally, on Tuesday AI company Anthropic began a series of investor meetings for a share offering, though its target valuation turned out to be lower than initially expected.

According to LSEG data, CoreWeave, with a market valuation of $27 billion, has not yet turned a profit. By the end of September, the company's total debt stood at approximately $46.9 billion.

$9 Billion from Customers and a $132.5 Billion Order Backlog

The company's CEO, Mike Intrator, is seeking to ease investor concerns. According to him, CoreWeave has received $9 billion in advance payments and deposits from customers, which are expected to come in over the next three months.

"Contracts with customers come first, investment follows. Because CoreWeave's investments are based on confirmed demand, lenders have a concrete basis for financing, and customers, as a rule, also help fund infrastructure development," Intrator said.

By the end of September, the company's backlog of future revenue secured by contracts reached $132.5 billion, up from $104 billion recorded at the end of June. CoreWeave's customers include Microsoft, Meta, OpenAI and Anthropic.

Despite strong demand, the company's capital expenditures are rising rapidly. In the third quarter they amounted to $14.5 billion, compared to $9.4 billion in the previous quarter. At the same time, recent financial reports from major tech companies have pointed to delays in data center projects and a slowdown in the pace of investment growth.

2026 Forecast Raised

CoreWeave now expects revenue of $13-13.3 billion in 2026, compared to its previous forecast of $12.4-13.2 billion.

However, the company raised the lower end of its annual expenditure forecast by $2 billion. Under the updated outlook, 2026 capital expenditures will reach $37-39 billion.

In the third quarter, CoreWeave's revenue grew nearly 170% year-over-year to $3.66 billion, beating analysts' forecast of $3.55 billion. Loss per share came in at 95 cents, also better than the $1.16 loss projected by analysts surveyed by LSEG.

Overall, the company's results confirm strong demand for AI infrastructure, though the question of its financial sustainability remains relevant: revenue growth is accompanied by a sharp increase in debt and capital expenditures.