CoreWeave reduced 2025 revenue forecast due to data center delays despite strong demand

Nvidia-backed CoreWeave has revised its annual revenue outlook downward, citing delays from a third-party data center partner. Despite strong third-quarter results, the company's shares declined more than 6% in extended trading after Chief Financial Officer Nitin Agrawal forecasted 2025 revenue between $5.05 billion and $5.15 billion—slightly below the previous range of $5.15 billion to $5.35 billion and below analysts' estimates of $5.29 billion, according to LSEG data.

CoreWeave clarified that the delay affected one customer, though the contract's overall value remains intact as the customer agreed to extend the deal's expiration date. The company has become a major player in the AI infrastructure market, securing multibillion-dollar partnerships including a $14 billion deal with Meta Platforms and a $6.5 billion contract with OpenAI, reflecting surging global demand for AI cloud computing and GPU-powered infrastructure.

In the September quarter, CoreWeave's revenue more than doubled to $1.36 billion, surpassing expectations of $1.29 billion. However, its adjusted operating income margin declined to 16%, down from 21% a year earlier, as costs related to AI chip procurement, data center expansion, and competition weighed on profitability.

The company, once a major Ethereum miner, has successfully transitioned into an AI-focused cloud provider, repurposing its GPU mining infrastructure to serve the growing artificial intelligence sector. Looking ahead, Agrawal stated that capital expenditure in 2026 will more than double compared to 2025, reaching between $12 billion and $14 billion, underscoring CoreWeave's aggressive expansion strategy.

Despite challenges, CoreWeave's stock has more than doubled since its IPO earlier this year at $40 per share, valuing the company at over $50 billion, as investors continue to bet on the long-term potential of AI-driven cloud computing.