CoreWeave (NASDAQ:CRWV) shares jumped 19% to about $108 on Wednesday after the AI infrastructure provider reported second quarter results that topped Wall Street expectations, with analysts at Wedbush and Jefferies highlighting strong demand and the company's expanding backlog.
CoreWeave reported revenue of $2.575 billion for the quarter ended June 30, up from $1.212 billion a year earlier and slightly above the roughly $2.56 billion consensus estimate.
The company posted an adjusted loss of $1.03 per share, narrower than the expected loss of $1.13 to $1.20 per share.
The company reported a GAAP net loss of $626 million, or $1.14 per share, compared with a net loss of $290 million, or $0.60 per share, in the year-ago period. Operating expenses increased to $2.624 billion from $1.193 billion, resulting in an operating loss of $49 million versus operating income of $19 million a year earlier.
CoreWeave said its revenue backlog stood at approximately $104 billion as of June 30, up from $99.4 billion at the end of the prior quarter. The company also said it expanded active power by nearly 500 megawatts during the quarter to reach 1.5 gigawatts, while total contracted power grew to approximately 3.7 gigawatts.
"CoreWeave reached an important inflection point this quarter as our scale began to translate into expanding operating leverage,” CoreWeave CEO Michael Intrator said in a statement. “Customer demand is accelerating, as enterprise adoption broadens and we continue to deepen our technology platform.”
Wedbush analysts viewed the backlog growth as evidence that demand for AI infrastructure remains strong despite concerns about the industry's financing needs, datacenter capacity and cash flow.
"We view this result as congruent with our view that demand for AI infrastructure remains extremely robust," the analysts wrote, adding that they believe concerns surrounding the broader AI complex are "overstated" within their visibility.
The analysts also pointed to what they see as rapid payback periods for new infrastructure builds, arguing that high infrastructure pricing is itself an indication of strong customer requirements.
Jefferies took a similarly constructive view, saying the results strengthened its long-term outlook for CoreWeave. The analysts maintained a ‘Buy’ rating and $150 price target, arguing that the company's improving unit economics and demand visibility outweighed several near-term concerns.
The firm said newer contracts are carrying materially better economics than recent deals, which it attributed to pricing, platform differentiation and the economics of newer infrastructure. Jefferies also argued that resilient pricing for older-generation systems suggests demand remains strong even as newer chips become available.
The analysts believe that the key question is how much of the improved profitability will flow through to the company's full-year results, noting that the second-quarter EBIT beat was not fully reflected in the increase to 2026 guidance. They also flagged higher capital spending and founder stock sales as remaining overhangs.
Despite those issues, Jefferies said the "long-term story strengthened," citing what it sees as an attractive valuation relative to CoreWeave's backlog and the scale of the potential AI infrastructure buildout.