Why CRWV stock crashed over 18% today after CoreWeave earnings? Investors react to bigger loss, massive spending plan, weak guidance and rising debt

CoreWeave CRWV stock today: Shares of CoreWeave took a sharp hit after the company reported a wider-than-expected loss and outlined massive spending plans that unsettled investors.

Why CoreWeave (CRWV) Stock Is Down Today

CRWV stock slid more than 18% on Friday, marking its biggest intraday drop in more than six months. In early trading, shares were down about 15% at $82.87. The pullback came even though revenue for the latest quarter edged past Wall Street expectations.

Also read: Why is gold price rallying today? Gold surges past $5,200 as US-Iran tensions rattle markets - experts reveal portfolio allocation strategy

CoreWeave Q4 Earnings: Revenue Beats Estimates but Losses Deepen

CoreWeave posted fourth-quarter revenue of $1.57 billion, slightly above the $1.55 billion analysts had projected and up 110% from a year earlier, as per a Barron's report. But losses widened significantly.

The adjusted loss per share came in at 56 cents, worse than the 50 cents analysts expected and sharply higher than eight cents last year, as per Barron's report. On a separate basis cited by Bloomberg, the loss widened to 89 cents per share versus estimates of about 72 cents.

Adjusted operating income also disappointed, landing at $88 million, down 27% year over year and well below projections.

CEO Michael Intrator described 2025 as a “defining year,” noting the company became the fastest cloud provider in history to reach $5 billion in annual revenue. Still, investors focused more on profitability pressures than top-line growth.

Also read: Homebuyers face higher credit check costs — here’s why fees are rising now

CRWV Stock Drops: Weak 2026 Guidance Sparks Fresh Selloff Fears

The after-hours decline intensified when CoreWeave issued weaker-than-expected first-quarter sales guidance. For 2026, the company forecast revenue of $12 billion to $13 billion, roughly in line with expectations, but first-quarter sales of about $2 billion trailed the $2.24 billion analysts had predicted, as per the Bloomberg report.

Adjusted operating income for the year is expected to range from break-even to $40 million. The company’s adjusted operating margin outlook of 8% also missed badly, though management reiterated a long-term target of 25% to 30%, as per the Barron's report.

CoreWeave’s $35 Billion Spending Plan Raises Concern on Wall Street

CoreWeave’s aggressive expansion strategy is central to the investor debate.

The company plans to spend $30 billion to $35 billion in capital expenditures in 2026, more than analysts anticipated, as per the Bloomberg report. In 2025 alone, capital expenditures totaled $21 billion, including $11 billion in the fourth quarter.

To fuel that growth, CoreWeave has ramped up borrowing. Debt and lease liabilities rose from nearly $19 billion at the end of September to $30 billion three months later, as per the Barron's report. In the fourth quarter, 25% of sales went toward paying interest on that debt, a major contributor to ongoing losses.

Chief Financial Officer Nitin Agrawal said the company’s weighted average interest rate declined by three percentage points in 2025 and the CEO said it is expected to fall further in 2026. Intrator added that CoreWeave ultimately aims to achieve investment-grade debt, as per the Barron's report.

The company is also reportedly seeking to raise about $8.5 billion from banks including Morgan Stanley and Mitsubishi UFJ Financial Group to help finance additional cloud capacity, as per the Bloomberg report.

FAQs

Why did CRWV stock fall sharply?
The stock dropped after the company reported a wider-than-expected loss and announced heavy capital spending plans.

What is CoreWeave’s revenue outlook for 2026?
The company expects full-year revenue between $12 billion and $13 billion.