CoreWeave (CRWV) shares fell 11.91% to $61.39 on Oct. 16, 2026, close to the 52-week low of $59.51, as worries about AI-related credit and the company's debt spread through the market. Revenue more than doubled in the second quarter ended June 30, 2026, to $2.58B, but the company still lost money and spent far more on data centers than it generated in cash. That gap, and how it is funded, is what the market is debating.
Key facts
- Oct. 16, 2026: CRWV closed at $61.39, down 11.91% on the day. The 52-week range is $59.51 to $141.79. Market cap is $33.86B.
- Q2 FY2026 (quarter ended June 30, 2026): Revenue was $2.58B, against $1.21B a year earlier, an increase of 112.5%. Net loss was $626.0M.
- Aug. 11, 2026 earnings report: Revenue beat the analyst estimate of $2.55B. The reported loss per share of $1.03 was narrower than the estimated $1.21 loss.
- June 30, 2026 balance sheet: Cash and short-term investments were $6.41B. Total debt was $51.61B, and net debt (debt minus cash) was $45.21B.
- Next earnings date: Nov. 9, 2026. Analysts expect revenue of $3.54B and a loss of $1.26 per share.
What happened
CoreWeave rents out computing power, mostly chips used to train and run artificial intelligence models, to customers from its data centers. On Oct. 16, 2026, technology stocks fell broadly as investors marked down AI software valuations. Headlines that day also pointed to a sell-off in bonds tied to AI companies. CoreWeave sits right in that conversation, because it has funded its growth largely with borrowed money.
No new earnings or company announcement drove the move. The company's latest results came out on Aug. 11, 2026, and its next report is due Nov. 9, 2026. Recent coverage has focused on the balance sheet. One article noted that the company is projected to carry a high ratio of debt to earnings by year end. Another noted that the founders have sold a large amount of stock since the IPO. We cannot confirm either claim from our data, so treat them as context rather than fact.
The results themselves were mixed. Revenue was $2.58B, slightly above the $2.55B estimate. The reported loss per share of $1.03 was better than the $1.21 loss analysts expected. The company's filing shows a diluted loss per share of $1.14 for the same quarter. The two figures are different measures of the same period, so check which one a source is using.
Why it matters for investors
Growth is real, but so are the losses. Revenue rose from $1.21B in the quarter ended June 30, 2025, to $2.58B in the quarter ended June 30, 2026. Over the same span, operating income swung from a $19.0M profit to a $49.0M loss. Net income fell from a $290.0M loss to a $626.0M loss.
The five-quarter trend shows margins under pressure. Here is how the last five quarters compare:
| Quarter ended | Revenue | Gross margin | Operating margin | Net income | |---|---|---|---|---| | June 30, 2025 | $1.21B | 74.2% | 1.6% | -$290.0M | | Sept. 30, 2025 | $1.36B | 73.0% | 3.8% | -$110.1M | | Dec. 31, 2025 | $1.57B | 67.6% | -5.7% | -$451.7M | | March 31, 2026 | $2.08B | 65.5% | -6.9% | -$740.0M | | June 30, 2026 | $2.58B | 65.9% | -1.9% | -$626.0M |
Gross margin (revenue left after the direct cost of delivering the service) dropped from 74.2% to the mid-60s and has held roughly steady for the last two quarters. Operating margin turned negative in late 2025 and reached its low of -6.9% in the quarter ended March 31, 2026. It improved to -1.9% in the latest quarter. That is the one clearly better trend in the table, though the company is still not profitable on an operating basis.
Cash flow is the pressure point. In the quarter ended June 30, 2026, the company generated $679.0M from operations but spent $6.42B on capital expenditures (data centers and equipment). Free cash flow, the cash left after that spending, was negative $5.74B. In the quarter ended March 31, 2026, operating cash flow was $2.98B, capital spending was $7.70B, and free cash flow was negative $4.71B. Free cash flow has been negative in every one of the last five quarters. The company paid no buybacks and no dividends in the last four. Spending is being covered by borrowing, which explains why total debt reached $51.61B against shareholders' equity of $5.02B.
Geography is concentrated. Of the $2.58B in revenue, $2.39B came from the United States and $186.0M from outside it.
How it compares with peers. CoreWeave's net margin over the trailing 12 months is -25.4%, and its price-to-sales ratio is 4.46. Among related companies:
- Nebius (NBIS), market cap $39.71B, has a net margin of 4.5% and a P/E of 636.42. A P/E that high reflects very small profits, not a bargain or a bubble on its own.
- Cerebras (CBRS), market cap $28.82B, has a net margin of -75.3% and a P/E of -39.00.
- BRUN, market cap $706.6M, has a net margin of -161.1%.
What analysts think. The consensus rating is "Buy": 21 Buy, 9 Hold, 1 Sell and no Strong Buy or Strong Sell ratings. The average price target is $145.89 and the median is $150.00. The range runs from $74.00 to $250.00. Even the lowest target is above the Oct. 16 close of $61.39, which says as much about how far the stock has fallen as about analyst optimism. Targets are opinions and often lag price moves. Recent rating actions include a JPMorgan upgrade from Neutral to Overweight on Sept. 24, 2026, and Mizuho keeping its Neutral rating on Oct. 15, 2026. Analysts also expect revenue to reach $34.64B for the period ending March 30, 2030, and $41.20B for the period ending June 30, 2030, with positive earnings per share of 0.72 and 0.84. Those are long-range estimates from a small group of analysts, and they depend on the company funding its build-out.
Our MoonshotScore is weak. Stock Expert AI's MoonshotScore V2 for CRWV is 14, which we label Weak. The pillars, each scored relative to its sector, are:
- Growth: 42, the strongest area, consistent with revenue more than doubling.
- Momentum: 33.
- Quality: 25.
- Valuation: 10.
- Safety: 2, the weakest area, which fits the heavy debt.
Risks to keep in mind
- Debt load: Net debt of $45.21B is large relative to $5.02B of equity. Debt-to-equity is 10.27. If credit markets tighten, refinancing could become more expensive.
- Cash burn: Capital spending was far above operating cash flow in every recent quarter, so the company depends on outside financing.
- Margin pressure: Gross margin is lower than a year ago, and the operating loss has not closed.
- Insider selling: Form 4 filings show 0 open-market purchases and 11 sales by insiders in the last 90 days. Insider sales can have many reasons, but there were no purchases to offset them.
- Customer concentration and market mood: Our data does not break out customers, so check the company's filings. The Oct. 16 sell-off shows how fast sentiment toward AI spending can shift.
What to watch next
- Nov. 9, 2026 earnings: Compare revenue with the $3.54B estimate and the loss with the $1.26 estimate.
- Operating margin: Did it keep improving from -1.9%, or slip back?
- Free cash flow and capital spending: Does the gap between operating cash flow and spending narrow?
- Debt and cash: Look for changes in the $51.61B debt total and the $6.41B cash balance, and any new financing terms.
- Price levels: Whether the stock holds above the 52-week low of $59.51 or breaks below it.
Frequently asked questions
Q: Why did CoreWeave stock fall on Oct. 16, 2026?
CRWV closed down 11.91% at $61.39 on Oct. 16, 2026. We found no new company announcement that day. Market coverage tied the drop to a broad technology sell-off, falling AI software valuations and concerns about credit tied to AI companies. CoreWeave's heavy borrowing makes it sensitive to those concerns.
Q: Is CoreWeave profitable?
Not yet. In the quarter ended June 30, 2026, it reported revenue of $2.58B, an operating loss of $49.0M and a net loss of $626.0M. Its trailing 12-month net margin is -25.4%. Operating margin improved from -6.9% to -1.9% over the last two quarters, but it remains negative.
Q: How much debt does CoreWeave have?
As of June 30, 2026, total debt was $51.61B against $6.41B in cash and short-term investments, leaving net debt of $45.21B. Shareholders' equity was $5.02B. In the quarter ended June 30, 2026, the company spent $6.42B on capital expenditures while generating $679.0M of operating cash flow, so borrowing has been funding its expansion.
This is educational content, not investment advice. Past performance does not guarantee future results.