CoreWeave (NASDAQ:CRWV) heads into its 2Q26 earnings report in early August with investors watching execution more than demand.
Demand for GPU capacity is still strong and customer commitments keep growing, but the real story now is whether the company can build out and activate power fast enough to keep up, according to analysts at Bank of America.
Data center execution is the number to watch. CoreWeave currently has about 1GW of active power and is targeting 1.7GW by year end, which means a big chunk of new capacity needs to come online over the next couple of quarters.
Bank of America analysts expect more of that buildout to land in the second half of the year rather than the first, and that's driving some steep revenue growth forecasts: 108% year over year in 2Q26, climbing to 150% in 3Q26 and 186% in 4Q26.
Capital spending is climbing too. The FY26 capex estimate has been raised to $34 billion, up from $29 billion, reflecting how fast the market is moving and the cost of key hardware components.
Operating margin is expected to come in around 2.4% in 2Q26, just below the Street's 2.8% estimate, but the outlook calls for steady improvement each quarter after that.
By the end of 4Q26, Bank of America expects operating margin could reach 14.6%, a big jump from just 1% in 1Q26.
Analysts believe competition, particularly from SpaceX and Meta, has weighed on the stock lately. But the view from Bank of America is that the compute market is not structurally competitive. Demand for AI compute is still outpacing supply by a wide margin, so the bigger constraint for customers is simply getting access to capacity, not choosing between providers.
Bank of America reiterated its Buy rating and $140 price objective on the stock.