Key Highlights

  • CoreWeave shares are trading down 7.41% at $56.27 versus a prior close of $60.77.
  • The stock surged 24.71% on Wednesday after third quarter results.
  • Revenue rose 168% to $3.7 billion, with Backlog near $133 billion.
  • Full-year 2026 Revenue guidance is $13.0 billion to $13.3 billion.
  • Management expects about $9 billion of customer prepayments over the next three months.

CoreWeave (NASDAQ:CRWV) is trading down 7.41% at $56.27, giving back part of Wednesday's 24.71% surge to $60.77. The move comes as AI infrastructure names pull back, with Nebius (NASDAQ:NBIS) trading down 16.91%. Investors are weighing strong results against funding costs.

Quarter Beats and Guidance Rises

Third quarter revenue was $3.7 billion, up 168% from a year ago and above guidance. Backlog reached about $133 billion, up 138%. Adjusted Operating Margin was 10%, up from 1% in the first quarter and 5% in the second.

Full-year 2026 revenue guidance is $13.0 billion to $13.3 billion, with adjusted Operating Income of $1.275 billion to $1.375 billion.

Pricing Strengthens

New four-to-five-year contracts are moving to $20 million to $25 million per megawatt annually, and short-term capacity sells above $40 million. Ampere and Hopper pricing rose 30% to 50% from the prior quarter. Management says Demand is 10 times available capacity through 2027, with 2028 demand already several times larger.

Financing Plan

Management said there will be no parent-level unsecured Debt through 2027 at current yields. Funding will come from delayed draw term loans, including a new investment-grade Facility expected in the coming weeks at a 7% to 7.5% Yield that finances over 90% of Capital spending. It will also come from about $9 billion of customer prepayments and deposits over the next three months, with more than $3 billion tied to recontracted existing infrastructure, plus OEM financing and EBITDA less interest, which is expected to more than double in 2027.

Less than $5 billion of incremental parent-level capital is expected through 2027. The weighted average cost of debt was 7.9%, down 250 basis points year over year.

Analysts Split on Debt

Of 26 analysts, 18 are bullish, six neutral and two bearish, with an average target of $115.15 and a range of $39 to $180. Bears point to debt and funding costs, and Bernstein estimates a $76 billion funding gap.

Funding Execution Decides the Next Move

After a one-day gain of nearly 25%, the stock is trading on whether funding stays cheap. Investors will watch the closing of the investment-grade loan, the arrival of the $9 billion in prepayments and whether adjusted operating margin keeps climbing past 10%.

Delivery of capacity against demand 10 times available Supply is the longer-term marker.