CoreWeave Raises Outlook Even as Interest Costs Nearly Triple

What happened

CoreWeave reported third-quarter revenue of $3.66 billion, up from $1.37 billion a year earlier and above analysts’ $3.54 billion estimate. Interest expense rose to $846 million from $310 million, while the company raised its 2026 revenue outlook and increased expected capital spending to $37 billion to $39 billion.

Confirmed

Global impact / market context

Higher revenue and stronger guidance point to continued demand, but financing the build-out is costly: quarterly capital spending of $9.44 billion far exceeded operating cash flow of $1.98 billion. Rising interest costs and new share sales can weigh on future earnings and dilute existing shareholders.

Analyst inference

The article reports a 13.48% premarket rise, alongside revenue above consensus and higher guidance. That favorable growth news sits against a funding gap: CoreWeave raised money through convertible notes, which can later become shares, and may sell up to 35 million new shares.

Confirmed

What to watch

1. Watch whether CoreWeave turns its higher 2026 revenue outlook into reported sales; delivery depends on expanding active power, which exceeded 1.7 gigawatts in the quarter. Analyst inference
2. Track capital spending against operating cash flow and customer prepayments; the company expects about $9 billion in prepayments and deposits over the next three months. Confirmed
3. Watch use of the share-sale program and borrowing costs: CoreWeave established a plan to sell up to 35 million new shares as interest expense rose sharply. Confirmed

Evidence

• gurufocus.com