CoreWeave beats quarterly revenue estimates as AI cloud demand surges

CoreWeave surpassed revenue expectations for the second quarter as demand for its AI cloud computing services surged, causing the company's shares to rise more than 14% in extended trading. The AI cloud provider also raised its 2026 revenue targets and adjusted operating profit, driven by a growing order book, price increases, and additional compute capacity becoming available this year.

CoreWeave, known as a neocloud offering hardware and cloud capacity to other tech companies, has experienced a surge in demand fueled by relentless enterprise spending on AI. Its close ties with Nvidia have solidified its position as a key provider of capacity powered by the popular Nvidia chips, attracting notable customers such as Meta, Anthropic, and Caterpillar.

CoreWeave reported a revenue backlog of $104.2 billion in Q2, up from $99.4 billion in Q1, along with more than $25 billion in net new customer commitments for the current quarter. CEO Michael Intrator highlighted that the company outperformed plans, with operating leverage showing positive results. With near-term capacity sold out, CoreWeave is securing compute agreements at increasingly favorable terms.

The company's capital expenditure for the full year is now projected between $35 billion and $39 billion, up from previous estimates of $31 billion to $35 billion. A substantial portion of CoreWeave's backlog consists of contracts where customer delivery has already begun, with more than half of its current backlog tied to such commitments.

In the second quarter, the company's revenue more than doubled to $2.58 billion, surpassing estimates of $2.56 billion, while its adjusted per-share loss was smaller than expected at $1.03 compared to a loss of $1.20. Capital expenditures reached $9.4 billion in the June quarter, up from $6.8 billion in the previous quarter.