Following the release of its Q4 2025 results and guidance, CoreWeave (CRWV.US), a leading provider of cloud-based AI computing power rentals, saw its profit projections reduced by Citi. The bank lowered its full-year 2026 earnings per share forecast for CoreWeave from $0.75 to -$2.97 and cut its 2027 EPS estimate from $3.11 to -$1.74. Citi also reduced the price target for CoreWeave from $135 to $126.
In a investor note released on Tuesday, Citi analysts, led by Tyler Radke, stated that due to the weaker-than-expected Q4 performance and a more realistic Q1 guidance, they have adjusted their Q1 2026 revenue and operating profit expectations to align with the company's outlook. They added that while full-year 2026 revenue is slightly above the company's guidance, given the greater potential for outperformance in upcoming quarters, they have lowered operating margins by approximately 13.5 percentage points and reduced EPS by $3.72, citing a larger mismatch between revenue recognition timing and expense incurrence in 2026.
CoreWeave's recent earnings report showed Q4 revenue grew 110% year-over-year to $1.57 billion, slightly exceeding the average market estimate of $1.55 billion. However, the company reported a loss per share of $0.89, missing market expectations. For Q1, the company provided revenue guidance of $1.9 to $2.0 billion, below the consensus estimate of $2.29 billion. CoreWeave also projected full-year 2026 revenue between $12 and $13 billion, compared to the prior analyst expectation of $12.09 billion, and forecast adjusted operating profit for 2026 in the range of $900 million to $1.1 billion. The company plans to target capital expenditures of $30 to $35 billion for 2026, significantly higher than the $10.31 billion spent in 2025.
Due to the disappointing Q1 guidance, CoreWeave's stock price fell sharply by 18.51% last Friday.
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