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CoreWeave Shares Climb on Revenue Beat, Raised Outlook as Analysts View Capacity Gains

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CoreWeave Shares Climb on Revenue Beat, Raised Outlook as Analysts View Capacity Gains

CoreWeave (CRWV) shares rose sharply Wednesday after the company posted a second-quarter revenue beat and raised its full-year outlook, with analysts saying the company's capacity gains signal additional upside.

The cloud-computing company reported revenue of $2.58 billion for the quarter ended June 30 late Tuesday, surpassing the FactSet-polled estimate of $2.55 billion.

CoreWeave shares were up 18% in Wednesday trading and have climbed about 49% this year.

For the full year, CoreWeave raised its revenue outlook to $12.4 billion to $13.2 billion, with Chief Financial Officer Nitin Agrawal saying on the earnings call that the company was seeing momentum "across our customer base," according to a FactSet transcript. The company previously guided for revenue of $12 billion to $13 billion.

Analysts said CoreWeave's expanding scale will give it more leg-room to announce surprise capacity expansions and to boost margins through inference services.

"We expect higher revenue/(megawatt) combined with faster-than-expected capacity additions, as well as longer server useful-life, to provide additional upside going forward," Oppenheimer analysts Param Singh and Jake Heimowitz said in a note.

On the earnings call, CFO Agrawal said the company expects to end the year with more than 1.85 gigawatts of active power, up from the previous guidance of more than 1.7 gigawatts.

The Oppeneheimer analysts said they were "confident" that CoreWeave will reach its long-term target of over 8 gigawatts of active power by 2030.

"The only negative is the increased (capital expenditure) guide, which adds near-term pressure to (free cash flow) and (operating) margin given the mismatch between capacity additions and revenue timing," the Oppenheimer analysts said.

CoreWeave raised its 2026 capital expenditure guidance to $35 billion to $39 billion from its prior forecast of $31 billion to $35 billion.

"Still, the strong growth outlook and market positioning clearly outweigh the near-term investment needs," Oppenheimer said.

Price: $106.81, Change: $+16.49, Percent Change: +18.26%

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