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CoreWeave Earnings Beat Estimates. Why the Stock Dropped 16% Today.

Nov 10, 2025 13:23:00 -0500 by Tae Kim | #AI #Earnings Report

CoreWeave stock has had a wild ride since the initial public offering in March. (Yuki Iwamura/Bloomberg)

Key Points

CoreWeave reported better-than-expected revenue, but its shares tumbled after executives said a developer partner is behind schedule in data-center development.

The company reported an adjusted earnings-per-share loss of 22 cents for the September quarter late on Monday. That compared with Wall Street’s consensus estimate for a loss of 40 cent, according to FactSet.

Revenue came in at $1.36 billion, which was above analysts’ expectations of $1.29 billion.

On a conference call with analysts and investors, CoreWeave said AI demand “far exceeds” available capacity and the company remains in a supply-constrained environment. However, it expects revenue for 2025 to come in a range of $5.05 billion to $5.15 billion, below the $5.287 billion Wall Street consensus.

Management said a third-party data center developer was temporarily behind schedule due to pressures from supply chains. The customer affected by the delay has agreed to adjust the delivery schedule and maintain the value of the original contract.

CoreWeave shares fell 16% to $88.39 on Tuesday.

“We do expect the coming 2 quarters of shortfalls to be temporary and new demand can make up for it for full year 2026,” wrote Melius Research analyst Ben Reitzes in a research note. “The issue does show that CoreWeave may need to have more control of data center capacity and engineering to make sure this doesn’t become an ongoing issue—so it seems likely to vertically integrate more in the future.”

Reitzes kept a Buy rating on CoreWeave stock but lowered his target price to $140 from $165.

J.P. Morgan analyst Mark Murphy, however, downgraded the shares to Neutral from Overweight and lowered his stock forecast to $110 from $135. “We remain contemplative of the unprecedented and mounting industry-wide pressures across supply chains,” he wrote.

In an interview with Barron’s after the earnings call, CoreWeave CEO Michael Intrator said most of the delay in data center capex spending would be over by the first quarter of next year. The executive said overall demand for AI capacity is higher than it was three months ago.

He reiterated there are extreme pressures on the data center supply chain to meet the rising demand from “pouring concrete” to getting the necessary electric transformers plugged in. “Building the power shell [of the data center] is the most challenging part of delivering infrastructure in the short term,” he said. Intrator doesn’t believe the availability of power will be an issue for the next few years, but it may become a problem later on.

Founded in 2017, CoreWeave provides large-scale access to graphics processing units, or GPUs, via the cloud.

It has been a wild ride for CoreWeave stock since the company priced its initial public offering at $40 in late March. The stock has since more than doubled as CoreWeave has posted strong earnings reports amid robust forecasts of 2025 capital spending by large technology companies.

Not everything has gone CoreWeave’s way. In early July, CoreWeave announced an agreement to buy data-center infrastructure partner Core Scientific. But last month, Core Scientific’s board announced that the merger had failed to get shareholder approval and that the deal has been terminated.

CoreWeave has said that it will not increase its offer and will walk away from the deal.

“We respect the decision of Core Scientific’s stockholders regarding our previously announced merger agreement,” CoreWeave said in a statement. “Our partnership with Core Scientific remains strong and will continue to execute on shared growth opportunities. CoreWeave’s vision and strategy remain unchanged.”

Write to Tae Kim at tae.kim@barrons.com