Overview
- CoreWeave has sharply raised its revenue targets and backlog, forecasting $12.4 billion to $13.2 billion for 2026 and reporting a $104.2 billion contracted revenue backlog.
- The company plans colossal capital spending to meet demand, guiding roughly $35 billion to $39 billion of 2026 capex to build out GPU capacity before contracts start to generate full revenue.
- Interest costs are ballooning and currently outpace operating profits, with second-quarter interest at $640 million and third-quarter interest guidance of $860 million to $940 million against much smaller adjusted operating income.
- Management raised prices by about 25% in July and says that higher rates plus new contract economics should lift adjusted operating margins from about 5% in Q2 toward the low teens by Q4.
- The key risk for investors and customers is the timing gap between paying to build capacity and earning revenue from multi-year contracts, which makes the roughly $35 billion in debt and rising interest the decisive factor to watch next.