Core Viewpoint - CoreWeave's stock dropped over 8% despite reporting Q4 revenue that exceeded analyst expectations, primarily due to a significant increase in operating expenses and a larger net loss [1][2] Financial Performance - Q4 revenue grew by 110% year-over-year to $1.57 billion, slightly above the analyst forecast of $1.55 billion [2] - The company reported a Q4 loss of $0.89 per share, which was significantly worse than the expected loss of $0.49 per share [2] - Operating costs surged to $1.66 billion, more than double the previous quarter [2] - Q1 revenue guidance is projected to be between $1.9 billion and $2 billion, below the analyst expectation of $2.29 billion [2] - For the full year 2026, CoreWeave anticipates revenue between $12 billion and $13 billion, slightly below the analyst estimate of $12.09 billion [2] Capital Expenditure and Capacity Expansion - CoreWeave plans to increase capital expenditures to $30 billion to $35 billion in 2026, significantly higher than the $10.31 billion in 2025 [4] - The company aims to have over 1.7 gigawatts of active power capacity by the end of 2026, exceeding analyst expectations of 1.59 gigawatts [4] - As of year-end, CoreWeave operated 43 active data centers with an active power capacity of 850 megawatts, and contracted power capacity of 3.1 gigawatts [4] Order Backlog and Market Demand - The company's backlog increased from $55.6 billion at the end of Q3 to $66.8 billion by year-end [5] - The average contract fulfillment period has extended from 4 years to 5 years [5] - CEO Mike Intrator indicated a willingness to accept short-term profit losses to accelerate infrastructure expansion in response to customer demand [5] Industry Context - The demand for AI infrastructure is expanding beyond major cloud service providers to enterprise sectors and sovereign domains [4] - Ongoing challenges related to backlog risks, debt obligations, and capital costs are noted by analysts [5]