CoreWeave jumped 11% on Wednesday, sparking a rally in battered AI cloud stocks, as its heavy spending drove strong revenue growth and the company signaled a pullback from the borrowing binge that had raised alarms about an AI bubble.
Revenue jumped 168% to $3.7 billion in the third quarter, the company said in a Tuesday statement.
Q3 2026 Highlights
- Raised approximately $4.2 billion through an upsized offering of convertible senior notes
- Established inaugural at-the-market equity program for up to 35 million shares of Class A common stock
- Closed the $2.6 billion DDTL 5.5 Facility, CoreWeave’s first financing facility designed to support shorter-duration customer contracts
- Expanded support for sovereign and public-sector AI workloads through a collaboration with Leidos to deliver secure AI cloud capabilities for defense, national security, and intelligence missions
- Selected to deliver a fully managed AI cloud environment supporting biological research for DARPA alongside Parallel Works
- Entered into a multi-year agreement with Solidigm securing priority access to enterprise SSD capacity
Michael Intrator, co-founder and CEO of CoreWeave, told investors: “This was a breakout quarter for CoreWeave, with revenue increasing by more than $1 billion sequentially and adjusted operating margins reaching double digits a quarter ahead of plan. Our growth is supported by multiple sources of funding, including financing backed by customer contracts, operating cash flow, and approximately $9 billion in customer prepayments and deposits expected in the next three months alone. That financial flexibility positions us to keep delivering the infrastructure and software customers need to build, run, and scale AI.”
The company also raised its full-year 2026 revenue guidance to $13.0 billion–$13.3 billion and its adjusted operating income guidance to $1.275 billion–$1.375 billion, a 26% increase at the midpoint.
CoreWeave’s success is a relief for investors, as Cloud Providers such as CoreWeave, Nebius, and IREN have come under scrutiny this month as investors assess the sustainability of the AI trade.
By CEO NA Editorial Staff
