CoreWeave stock jumps 26% on strong Q3 earnings

CoreWeave's stock surged nearly 26% on Wednesday after the AI cloud provider reported strong third-quarter earnings, offering relief to investors following a month-long decline that erased over 40% of its market value. The company posted Q3 revenue of $3.66 billion, up 168% year-over-year and above Wall Street's $3.55 billion estimate. CoreWeave raised its 2026 revenue forecast to $13.0–$13.3 billion and reported a contracted backlog of $132.5 billion. Management also expects about $9 billion in customer prepayments over three months and no new unsecured parent-level debt through 2027. Despite the rally, CoreWeave faces significant challenges, including $46.9 billion in total debt and rising interest costs projected at $1.05–$1.15 billion for Q4. Analysts remain divided, with JPMorgan and Citi maintaining buy ratings, while Bernstein kept an underperform rating, citing shaky fundamentals and the need to convert backlog into sustainable cash flow.