Yahoo Finance·2025-11-12 17:32Core View - J.P. Morgan analysts maintain that CoreWeave's long-term potential is intact, highlighting a backlog that nearly doubled to $56 billion and significant contract expansions [1] Financial Performance - CoreWeave reported Q3 sales growth of 134% year-over-year, reaching $1.36 billion, and ended the quarter with a backlog of $55.6 billion, up from $28 billion in Q2 [8] - Operating margins decreased to 16% from 21% year-over-year, resulting in a net loss of $110 million [7] - The company reduced its full-year revenue guidance by $150 million to $5.1 billion, disappointing investors [6] Customer and Contract Developments - CoreWeave added notable customers such as CrowdStrike, Poolside, Rakuten, and Jasper, and launched CoreWeave Federal to serve government agencies [1] - Customer concentration improved, with no single client accounting for more than 35% of the revenue backlog, down from approximately 85% at the beginning of 2025 [10] - Significant contract expansions include a $14.2 billion deal with Meta and a $22.4 billion agreement with OpenAI [10] Operational Challenges - CoreWeave had to lower its year-end active power target from above 900 megawatts to over 850 megawatts and cut capital expenditure guidance from $8.5 billion to $13 billion [2] - Delays in construction from a third-party data center provider have forced the company to push some fourth-quarter revenue into 2026 [5][6] Future Outlook - Management anticipates that capital expenditures in 2026 will exceed double the 2025 total of $12 billion to $14 billion to meet growing demand [11] - Analysts forecast revenue growth from $5.1 billion in 2025 to $25.8 billion in 2029, with a potential free cash flow of $5.68 billion by 2029 [13][14] - The average stock price target for CoreWeave is $141.84, indicating potential upside from the current price of about $87 [15]