CRWV Stock Before Q3 Earnings: Smart Bet or Risky Move for Investors?

CoreWeave, Inc. (CRWV) is scheduled to report third-quarter 2025 results on Nov. 10, after market close.

The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter is pegged at a loss of 39 cents. The estimate has been revised down by 1 cent in the past 60 days. The consensus estimate for total revenues is pinned at $1.3 billion.

CoreWeave, which went public in March 2025, will report its third earnings release since the IPO. It has positioned itself as a purpose-built AI cloud provider that scales GPU capacity aggressively for model training and inference.

CRWV’s loss narrowed to 60 cents per share in the second quarter from a loss of $1.62 in the year-ago quarter. Adjusted net loss for the quarter was $131 million compared with $5 million a year ago.

What Our Model Predicts for CRWV

Our proven model predicts an earnings beat for CRWV this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

CRWV has an Earnings ESP of +15.66% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Where CoreWeave Stands Going Into Q3

Rapid enterprise adoption of AI, with organizations increasingly viewing it as a strategic priority, is fueling explosive demand for CoreWeave’s AI cloud services. This surge in adoption, positioning CoreWeave as a key enabler of innovation and growth for both training and inference workloads, is likely to translate into strong revenue momentum for the company in the third quarter. In the last reported quarter, CRWV’s revenues jumped 207% year over year, driven by increasing demand for the AI-cloud platform.

Amid strong demand, CoreWeave expects third-quarter revenues between $1.26 billion and $1.3 billion. The company also anticipates adjusted operating income of $160 million to $190 million as it continues to scale capacity to meet growing customer needs.

It has accumulated a sizable backlog that suggests steady traction ahead. Revenue backlog rose 86% year over year to $30.1 billion in the second quarter, driven by the expanded OpenAI strategic agreement and a major hyperscaler contract signed and extended in the first half of 2025. CRWV continues to further strengthen ties with OpenAI. In September, it expanded the partnership to support the training of next-generation AI models, reinforcing its position as a leading cloud platform for advanced AI workloads. The new $6.5 billion deal brings CoreWeave’s total contract value with OpenAI to about $22.4 billion, following earlier agreements in March and May 2025. In October, it signed an agreement with Meta Platforms to supply cloud computing capacity. Depending on certain conditions, Meta will initially pay up to $14.2 billion through Dec. 14, 2031, with an option to expand significantly through 2032 for more cloud capacity.

Moreover, it has forged strong ties with NVIDIA Corporation (NVDA), becoming the first cloud provider to offer NVIDIA RTX PRO 6000 Blackwell Server Edition instances for general availability. With this launch, CoreWeave now delivers one of the most comprehensive selections of NVIDIA Blackwell infrastructure in the industry, including the NVIDIA GB200 NVL72 system and the NVIDIA HGX B200 platform. In September, it announced a new $6.3 billion order under its existing Master Services Agreement with NVIDIA (dated April 10, 2023). Per the deal, NVIDIA will purchase CoreWeave’s residual unsold capacity through April 2032, subject to certain conditions.

Expanding its capacity and service offerings remains a key performance catalyst to its success in a structurally undersupplied market. Driven by strong customer demand, the company is rapidly scaling its footprint. It is on track to exceed 900 MW of active power by year-end, supporting a durable multiyear growth trajectory. In July, it announced $6 billion to build a new state-of-the-art AI data center in Lancaster, PA, with an initial capacity of 100 MW and a potential to scale up to 300MW. The Lancaster facility will add to the company’s 1.6 GW of contracted power, offering a multiyear runway in power capacity.

However, as CoreWeave scales its capacity and brings substantial new infrastructure online, it continues to face elevated costs ahead of revenue realization. The magnitude of these deployments relative to their base is likely to weigh on its profitability, resulting in near-term margin pressure. Management expects third-quarter interest expenses in the range of $350-$390 million, reflecting higher debt levels taken on to fund demand-driven capital expenditures. CapEx is projected between $2.9 billion and $3.4 billion, indicating continued heavy investment requirements. Also, stock-based compensation is expected to remain elevated through the year due to IPO-related grants and increased hiring, further pressuring near-term profitability.

Update on CRWV’s Inorganic Expansion Strategy

The company remains at the forefront of strategic acquisitions to supplement inorganic growth, striking large commercial agreements with hyperscaler partners. In September, it announced a definitive agreement to acquire OpenPipe Inc., a leading reinforcement learning platform for training AI agents. The move follows CoreWeave’s buyout of Weights & Biases (“W&B”), as well as recent agreements to acquire Marimo Inc., the creator of the open-source Marimo notebook, and Monolith AI Limited, a leader in AI for physics and engineering. While its proposed $9 billion acquisition of Core Scientific was terminated after stakeholder opposition, these deals aim to strengthen its AI platform, accelerating R&D, product design and innovation.

CRWV Stock vs. Industry

CRWV shares have rallied 113.4% in the past six months, outperforming the Zacks Internet Software industry’s growth of 11.9%. The stock has also outpaced the Zacks Computer & Technology sector and the S&P 500’s growth of 40.1% and 22.8%, respectively.

The company has outperformed its peers and tech behemoths like Microsoft (MSFT), which has grown 17% during the past six months, while Nebius Group N.V. (NBIS), another strong contender in the AI infrastructure space, has risen 326.2%.

Key Valuation for CRWV

CoreWeave seems overvalued, as suggested by the Value Score of F. In terms of Price/Book, CRWV shares are trading at 21.04X, way higher than the Internet Software industry’s 6.22X, but it could mean more risk than opportunity.

NBIS and MSFT shares are trading at multiples of 7.31X and 10.38, respectively.

Is CRWV Worth Considering?

CoreWeave continues to lead across key metrics such as power capacity, AI cloud performance, revenue and backlog. The company aims to further strengthen its position through deeper vertical integration of data center infrastructure and cloud services, enhancing capital efficiency and reducing its cost of capital. Management expects continued revenue gains in the third quarter of 2025, supported by customer commitments and operational strength.

Investors should consider buying CRWV stock now, as strong AI-driven demand, a potential earnings beat this quarter and hefty valuations and related industry tailwinds are fueling its growth engine.

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This article originally published on Zacks Investment Research (zacks.com).

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