By REINHARDT KRAUSE

CoreWeave (CRWV) reported a smaller-than-expected, second-quarter loss as operating margins improved. Revenue topped estimates amid strong demand for artificial intelligence computing infrastructure. CoreWeave stock jumped on Wednesday.

The Nvidia (NVDA)-backed company reported Q2 earnings after the market close on Tuesday. In the quarter ending June 30, CoreWeave said it lost $1.14 per share vs. a 60-cent loss a year earlier. Revenue rose 112% to $2.575 billion, the company said.

Wall Street analysts predicted a loss of $1.20 per share for CoreWeave stock on revenue of $2.555 billion.

CoreWeave turned in $128 million in adjusted operating income, nearly double estimates.

Order Backlog

CoreWeave said its revenue backlog was about $104 billion, up 246% from a year earlier, as of June 30. It also booked $25 billion of net new customer commitments in early Q3.

Also, management raised full-year 2026 revenue guidance to $12.4 billion to $13.2 billion, up from $12 billion to $13 billion.

"The principal positive development was the beginning of the operating-leverage inflection that the company highlighted in Q1," said Bernstein analyst Madison Rezaei in a report. "Adjusted EBITDA rose to $1.51 billion, up 101% year-over-year and approximately 30% sequentially. Most notably, adjusted operating income increased to $128 million. Management attributed the improvement to a larger installed base, improving utilization, and better economics on newly signed customer contracts."

Key CoreWeave Stock Metrics

Meanwhile, interest on CoreWeave debt rose 40% to $640 million.

Remaining performance obligations, or RPO, represents total revenue a company expects to recognize in the future from customer contracts that have not yet been fulfilled. Cloud firms can only recognize revenue as they deliver services.

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CoreWeave hiked its 2026 capital spending outlook to a range of $35 billion to $39 billion, up from $31 billion to $35 billion.

Microsoft, OpenAI Customers

A newcomer to the cloud-computing market, CoreWeave rents out servers equipped with Nvidia artificial intelligence accelerators.

On the stock market today, CoreWeave stock rose more than 18% to near 107 in early trading. Heading into the CoreWeave earnings report, shares were up 23% in 2026.

Shares in CoreWeave hit an all-time high of 153.20 on Oct. 10. Shares rebounded recently after cloud-computing giants such as Amazon.com (AMZN) reported strong financial results.

CoreWeave and other cloud infrastructure startups rent Nvidia chip-equipped computer servers mainly to artificial-intelligence model builders as well as app developers. CoreWeave's biggest customer has been Microsoft (MSFT). CoreWeave is also ramping up data-center capacity for ChatGPT developer OpenAI, a leader in building AI models.

While some analysts project a big AI market opportunity for CoreWeave, others fret about customer concentration and high debt. CoreWeave was founded as a cryptocurrency miner in 2017 before its move into cloud-computing services.

Insider selling has at times pressured CoreWeave stock, Jefferies analyst Brent Thill said in a report.

"Since CoreWeave's IPO, the firm's cofounders have sold $2.9 billion of stock through 10b5-1 trading plans," Thill said.

CoreWeave Stock Technical Ratings

Meanwhile, CoreWeave stock owns a Composite Rating of only 9 out of a best-possible 99, according to IBD Stock Checkup. Also, CoreWeave stock has a relatively small float, making it more volatile. The Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.

CoreWeave stock holds an Accumulation/Distribution Rating of D. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)

Rival Nebius (NBIS) reports Q2 earnings early Wednesday.

Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, quantum computing, cybersecurity and cloud computing.

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Source: Investor's Business Daily