CoreWeave's $66.8B Backlog Boosts Long-Term Growth Outlook

Core Insights - CoreWeave (CRWV) reported a strong fourth-quarter 2025 performance, with a revenue backlog of $66.8 billion, which increased more than fourfold during 2025, indicating robust customer commitments for its AI cloud infrastructure [1][11] - The growing demand for AI infrastructure is a significant driver of this record backlog, with clients increasingly deploying infrastructure for inference use cases [2] - The average weighted contract length has increased from four years to about five years, reflecting deeper customer commitments to the AI cloud platform [3] Infrastructure Expansion - CoreWeave is rapidly expanding its infrastructure, ending 2025 with over 850 megawatts of active power across 43 data centers, having added 260 megawatts in the fourth quarter [4] - The company contracted nearly two gigawatts of additional power in 2025, bringing total contracted capacity to over 3.1 gigawatts, with most expected to come online by 2027 [4] - Management aims to add more than five gigawatts of additional data center capacity by 2030 [4] Financial Projections - For 2026, CoreWeave expects capital expenditures between $30 billion and $35 billion and plans to double active power capacity to over 1.7 gigawatts [5] - Projected revenues for 2026 are between $12 billion and $13 billion, suggesting a year-over-year growth of 140% [5] - Management anticipates that every contract tied to new capacity will start generating revenues by the end of 2026 [5] Competitive Landscape - The AI infrastructure market is becoming increasingly competitive, with notable players like Microsoft (MSFT) and Nebius (NBIS) [6] - Microsoft reported a commercial remaining performance obligation (RPO) of $625 billion, up 110% year-over-year, driven by large Azure commitments [7][8] - Nebius, another hypergrowth AI infrastructure company, has seen demand exceed available capacity and is also experiencing longer average contract durations [9][10]