CoreWeave’s Results Put Interest Costs and Expansion Funding in Focus

CoreWeave’s November 10 earnings report will provide an update on the AI cloud provider’s revenue and interest costs as it pursues a major expansion. Its 2032 bond yielded more than 16% on November 6, days before the results were due, according to 24/7 Wall St.

The company has projected third-quarter interest expense of $860 million to $940 million and capital spending of $35 billion to $39 billion for 2026. It also reported more than $25 billion in commitments early in the third quarter, according to 24/7 Wall St.

The results are scheduled for after the US market close. CoreWeave has guided for third-quarter revenue of $3.45 billion to $3.6 billion.

Interest expense reached $640 million in the second quarter

CoreWeave reported $640 million in interest expense in the second quarter, compared with $267 million a year earlier, according to 24/7 Wall St. The company’s third-quarter guidance calls for a further increase to between $860 million and $940 million.

The company’s second-quarter free cash flow was negative $5.743 billion, 24/7 Wall St. reported. CoreWeave’s full-year capital spending plan is $35 billion to $39 billion.

Analysts expect full-year revenue of about $12.9 billion and a loss of $3.98 per share, according to 24/7 Wall St. The publication also reported that 42 analysts covering the stock had an average Buy rating and an average price target of $131.53.

The more than $25 billion in early third-quarter commitments could also be compared with the company’s reported backlog. The available figures do not establish how much of those commitments will appear there.

The 2032 bond’s yield exceeds its 9.625% coupon

The yield above 16% reflects the bond’s trading price, not a change to the interest rate on CoreWeave’s existing 2032 bond. Its coupon is 9.625%. New unsecured borrowing would likely have to be priced close to where the existing bonds trade, according to 24/7 Wall St.

The cost of insuring CoreWeave’s debt against default has also risen. Deutsche Bank figures cited by CNBC put the cost of five-year default protection above 1,289 basis points on November 5, beyond its October peak. It eased the next day to around 1,155 basis points.

A credit default swap provides protection to a buyer if a borrower defaults. At 1,289 basis points, the annual premium was equivalent to about 12.9% of the debt insured, according to 24/7 Wall St.

Protection costs have risen for larger AI-linked companies too, but from much lower levels. CNBC reported Nvidia’s spread at roughly 139 basis points after a 76% increase over a month. Broadcom’s was up 49% and Amazon’s had gained 44% over the same period, while Oracle’s spread stood at about 298 basis points. The differences in spread levels mean that a large percentage increase does not imply equivalent credit risk.

Microsoft supplied about 67% of 2025 revenue

Microsoft accounted for about 67% of CoreWeave’s revenue in 2025, up from 62% in 2024, according to 24/7 Wall St. The earlier figure was disclosed when CoreWeave went public in 2025.

Microsoft has committed more than $80 billion to lease capacity from outside cloud providers, 24/7 Wall St. reported. It is also winding down an Oracle rental deal and reducing its roster of smaller AI cloud suppliers. The publication said Microsoft had not identified which smaller providers it would drop; it did not report a reduction in CoreWeave contracts.

For neocloud providers, consolidation or a pullback in capital spending could result in fewer or shorter contracts for data center computing or delays in prepayments, CNBC reported.

AI borrowing continues despite credit pressure

Goldman Sachs counted five AI bond deals totaling $67 billion since October 29, bringing hyperscaler debt issuance for the year to $296 billion, according to CNBC. Goldman forecasts $440 billion in hyperscaler debt issuance next year, plus $300 billion in project-level issuance across investment-grade and high-yield debt.

The bank’s analysts said hyperscalers collectively reported negative free cash flow in the third quarter because capital spending exceeded operating cash flow. They identified delayed monetization and growth in purchase commitments as risks to further debt issuance, subject to market conditions.

Bank of America analysts forecast that AI-related public and private credit issuance will rise 31% from 2026 to $685 billion in 2027, before falling 23% to $531 billion in 2028. They said a slowdown in infrastructure projects could reduce capital spending needs and debt funding below those forecasts.