CoreWeave Beats Forecasts, Projects $5 Billion 2025 Revenue

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CoreWeave Beats Forecasts, Projects $5 Billion 2025 Revenue \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ CoreWeave reported stronger-than-expected Q1 revenue in its first earnings release since going public, with a 420% year-over-year increase to $981.6 million. Despite widening losses, the company is forecasting full-year revenue up to $5.1 billion, backed by a multi-billion-dollar deal with OpenAI. Shares dipped in after-hours trading as investors digested massive capex plans and accounting complexities.

Quick Looks

Q1 revenue hits $981.6M vs. $853M forecasted by LSEG
EPS: Loss of $1.49, net loss grows to $314.6M
Revenue up 420% YoY; full-year growth projected at 363%
Q2 revenue forecast: $1.06B to $1.1B vs. $986.7M expected
OpenAI signs $11.9B five-year deal plus new $4B contract
Revenue backlog climbs to $25.9B, up 63%
Remaining performance obligation at $14.7B, slightly down from 2024
Capex forecast for 2025: $20B to $23B
Power capacity added: 300 megawatts; goal to double by year-end
Stock drops 7% in extended trading after earnings call
Nvidia remains major partner, investor, and anchor IPO backer
Analysts cautious on AI sector demand and economic uncertainty

Deep Look

CoreWeave Posts Blowout Revenue After IPO, Targets $5 Billion in 2025 Amid Soaring AI Demand

CoreWeave, a rising force in AI infrastructure, reported its first earnings since going public — and it didn’t disappoint on top-line numbers. Revenue for the first quarter surged 420% year-over-year to $981.6 million, beating analyst expectations by a wide margin. Despite the results, CoreWeave shares slipped 7% in extended trading, as Wall Street grappled with its massive capital expenditures and accounting classifications for long-term contracts.

Still, the company’s tone was clear: growth is just getting started.

Big Revenue Beats, But Growing Losses

CoreWeave posted a net loss of $314.6 million, widening from $129.2 million a year earlier. The company attributed much of the loss to a $177 million charge in stock-based compensation linked to its March IPO — the largest U.S. venture-backed tech listing since 2021.

The company also reported an earnings per share (EPS) loss of $1.49, but the market focused more on revenue performance and guidance. Q2 revenue is projected between $1.06 billion and $1.1 billion, well above Wall Street’s $986.7 million forecast.

CEO Mike Intrator framed the growing capex and losses as necessary investments to meet explosive demand for its AI-focused compute infrastructure.

Full-Year Growth Outlook Surges

CoreWeave now expects to generate between $4.9 billion and $5.1 billion in 2025 revenue — up significantly from analyst estimates of $4.61 billion. That guidance implies 363% year-over-year growth. To meet that demand, the company plans capital expenditures between $20 billion and $23 billion.

“This isn’t about cost inflation,” Intrator emphasized on the earnings call. “It’s a real signal of demand. We’re seeing more clients than expected come on board to deploy infrastructure with us throughout the rest of the year.”

OpenAI and Microsoft Remain Critical Anchors

CoreWeave’s biggest client momentum came from OpenAI, which committed to a five-year agreement worth up to $11.9 billion in Q1 — a deal that wasn’t even included in the $25.9 billion revenue backlog reported as of March 31.

A subsequent $4 billion contract with OpenAI was signed after Q1 ended, according to Intrator in a CNBC interview. That’s on top of existing demand from Microsoft, which accounted for 62% of CoreWeave’s 2024 revenue.

Despite concerns about customer concentration, CoreWeave said no single entity now represents more than 50% of its backlog — a sign of diversification as it expands its customer base beyond the tech elite.

Backlog and Classification Questions

CoreWeave reported $25.9 billion in total revenue backlog, up 63% quarter-over-quarter. However, its remaining performance obligation (RPO) — a narrower accounting term for committed contract revenue — dropped slightly to $14.7 billion from $15.1 billion at the end of 2024.

Intrator explained that some contracts are not yet included in RPO due to accounting delays, noting “the payments are the same, the security is the same — it’s just a matter of classification.” He acknowledged investor confusion but insisted the underlying fundamentals are intact.

Powering AI: The Energy Race

Another critical pillar of CoreWeave’s growth strategy is energy. AI data centers are power-hungry, and CoreWeave is racing to build out the infrastructure to meet that demand. During Q1, the company added 300 megawatts of contracted power. By year-end, CFO Nitin Agrawal says the company expects to deploy more than double its lifetime cumulative power.

At the end of 2024, CoreWeave had 1.3 gigawatts of power — a key metric for scaling compute services.

IPO and Nvidia’s Role

CoreWeave went public in late March, debuting on Nasdaq at $39 per share. While the initial price was below the previously marketed range of $47 to $55, the IPO was still considered a major milestone. Nvidia, already a key supplier and customer, helped anchor the offering at $40 and remains one of CoreWeave’s largest investors.

The stock surged post-IPO and had climbed 31% in the week leading up to the earnings report, fueled by AI euphoria and excitement around the OpenAI deal.

Wall Street Reaction: Optimism with Caution

Despite beating expectations, CoreWeave’s shares slipped after-hours. Analysts from Wells Fargo, which currently rates the stock a “Hold,” noted that long-term uncertainties in AI demand, economic softness, and backlog clarity could keep the stock range-bound.

Investors are also grappling with the implications of massive capital investment — $20 billion to $23 billion — which will likely weigh on margins and profitability in the short term.

Trade Policy and Tariff Exposure

The company said it does not expect meaningful impact from President Donald Trump’s newly announced tariffs on imported goods. CFO Nitin Agrawal said CoreWeave is well positioned to navigate any policy shifts due to its U.S.-centric infrastructure and client base.

What’s Next

As demand for AI infrastructure accelerates, CoreWeave is positioning itself to become a central player in powering the next generation of machine learning and generative AI applications. Its ability to scale infrastructure, secure major clients, and expand energy capacity will be crucial in meeting growth targets and sustaining investor confidence in a volatile market.