CoreWeave stock sinks 9% after hours despite strong earnings beat

CoreWeave shares fell 9% in after-hours trading on Tuesday, even though the company delivered quarterly results and guidance that came in above analyst expectations, according to data from CNBC.

The artificial intelligence infrastructure provider reported $1.21 billion in revenue for the quarter, ahead of the $1.08 billion Wall Street was looking for. Revenue more than tripled compared to the $395.4 million reported during the same period last year.

Despite that growth, CoreWeave still posted a net loss of $290.5 million, slightly better than the $323 million loss a year ago. Earnings per share came in at a loss of 21 cents, with the company noting that the figure was not directly comparable to the consensus estimates.

Chief Financial Officer Nitin Agrawal told analysts on the earnings call that growth continues to be limited by available capacity, with demand for CoreWeave’s Nvidia GPU rental services still exceeding what the company can supply.

The business competes with cloud providers like Amazon Web Services for the same AI-focused customers. Nitin said this imbalance between demand and available hardware remains a key challenge.

Margin drop, new customers, and billion-dollar acquisition

The company’s operating margin dropped sharply to 2%, down from 20% a year earlier, a decline largely caused by $145 million in stock-based compensation. Debt levels have now reached $11.1 billion. This was only CoreWeave’s second full quarter reporting results as a public company after its IPO in March.

Chief Executive Mike Intrator said CoreWeave has expanded its work with OpenAI, which is both a major client and an investor. He also said Goldman Sachs and Morgan Stanley have joined as customers. Both banks were underwriters for CoreWeave’s March IPO.

During the quarter, the company acquired Weights and Biases for $1.4 billion. The startup develops software that monitors AI models in production.

This deal came just months after CoreWeave’s May update, when management announced 420% revenue growth, heavier losses, and nearly $9 billion in debt. Despite those numbers, the stock price doubled in the month after that update.

Higher forecasts, Nasdaq debut, and expansion projects

For the third quarter, CoreWeave expects revenue between $1.26 billion and $1.30 billion, slightly higher than the $1.25 billion analysts were projecting. For the full year 2025, the company now expects between $5.15 billion and $5.35 billion in revenue, representing 174% growth from the current year.

That is up from the $4.9 billion to $5.1 billion guidance provided in May. Analysts surveyed by LSEG had forecast $5.05 billion.

CoreWeave’s stock began trading on the Nasdaq at the end of the first quarter after it sold 37.5 million shares at $40 each, raising $1.5 billion. By Tuesday’s close, shares were at $148.75, valuing the company at more than $72 billion before the after-hours drop.

The company also announced that a New Jersey data center project with up to 250 megawatts of capacity is on track for delivery in 2026. Mike said that before the end of this year, CoreWeave plans to roll out spot GPU rentals, which will allow customers to rent hardware at lower rates with the condition that the company can reclaim the GPUs if needed for other workloads.

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