Will CoreWeave's Global Expansion Accelerate Revenue Growth?
CoreWeave, Inc. CRWV is expanding its global infrastructure as demand for AI cloud services continues to strengthen across sectors, geographies and workloads. In the second quarter of 2026, the company generated record revenue of $2.6 billion, up 112% year over year, while its revenue backlog reached $104.2 billion. CoreWeave also added more than $25 billion of net new customer commitments in the early weeks of the third quarter. The company ended the second quarter with 1.5 gigawatts of active power and remains on track to reach at least 8 gigawatts by 2030.
Global expansion is becoming an important part of this capacity strategy. CoreWeave said it has contracted more than 1 gigawatt of power outside the United States and recently entered the Asia-Pacific region with 360 megawatts in Indonesia. This capacity is expected to come online in approximately 18 months. The company expects international markets to become a major driver of growth as it meets customers where they and their end users operate. On the lastearnings call CoreWeave highlighted that demand is expected to meaningfully exceed supply for years, supporting the need for continued investment in infrastructure, power and supply-chain capacity.
The company is also expanding beyond its core cloud infrastructure through managed inference, storage, CPU, networking and software. Its margin-accretive businesses beyond GPUs exceeded $400 million in annualized recurring revenue in the second quarter, while managed inference booked ARR increased from $1 million to more than $100 million within a few months. CoreWeave expects to exit 2026 with at least $250 million of managed inference ARR. These offerings are being adopted by a broader customer base and provide additional ways for customers to expand their spending on the platform.
CoreWeave raised its full-year 2026 revenue guidance to $12.4 billion-$13.2 billion and expects year-end annualized run-rate revenue of $18.5 billion-$19.5 billion. With more than 1 gigawatt of international power contracted, including the Indonesia expansion, the company expects global markets to contribute meaningfully to future growth as it continues expanding capacity and serving customers worldwide.
Taking a Look at CRWV’s Competitors
Microsoft Corporation MSFT reported fourth-quarter fiscal 2026 revenues of $90 billion, which increased 18% year over year. At constant currency, revenues grew 17% year over year, reflecting continued strength in cloud and AI demand. For the first quarter of fiscal 2027, Microsoft expects total company revenues between $89.85 billion and $90.95 billion, suggesting growth of roughly 16% to 17%. The Intelligent Cloud segment is expected to generate revenues between $40.95 billion and $41.25 billion. The Productivity and Business Processes segment is expected to generate revenues between $36.7 billion and $37.0 billion.
Amazon.com Inc. AMZN reported second-quarter 2026 net sales of $200.6 billion, up 20% year over year. Amazon’s international expansion and diversification across e-commerce, AWS cloud services, advertising and streaming create multiple revenue streams while reducing concentration risk. For the third quarter of 2026, Amazon expects net sales between $197 billion and $202 billion, indicating growth of 9% to 12% compared with the third quarter of 2025. AI integration across operations enhances personalization, logistics and AWS offerings, strengthening competitive positioning.
CRWV Price Performance, Valuation and Estimates
Shares of CoreWeave have lost 18.9% in the past three months against the Internet Software industry’s growth of 15.2%.
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In terms of Price/Book, CRWV’s shares are trading at 8.49X, higher than the Internet Software Services industry’s 5.07X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRWV’s earnings for the current year has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
CRWV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
