Can CoreWeave Convert Its $55B Backlog Into Profitable Growth?

CoreWeave, Inc. CRWV reported exceptional momentum in building its revenue backlog, underscoring the strength of demand for its AI-focused cloud platform. The rapid expansion of backlog is occurring in a highly supply-constrained environment, where demand for AI infrastructure continues to exceed available capacity. CoreWeave emphasized that customers are committing to long-term, take-or-pay contracts, providing strong revenue visibility.In the last reported quarter, the company’s revenue backlog reached $55.6 billion, nearly doubling sequentially. This growth was driven by major contracts with clients such as OpenAI, Meta and several hyperscalers.  Management also highlighted that more than $25 billion of backlog was added in the third quarter alone, reflecting large-scale contract execution and expanding customer commitments. Notably, CRWV reached $50 billion in remaining performance obligations (RPO) faster than any cloud provider in history, demonstrating deep customer confidence in its platform.Management also stressed that backlog quality has improved alongside its scale. As of the third quarter, no single customer accounted for more than approximately 35% of total backlog, a meaningful reduction from roughly 85% at the beginning of the year. Additionally, more than 60% of the backlog is tied to investment-grade customers, reinforcing the durability and credit quality of contracted demand.CoreWeave’s growing backlog is closely linked to its aggressive capacity expansion strategy. In the third quarter of 2025, the company increased its active power footprint to approximately 590 megawatts and expanded contracted power capacity to 2.9 gigawatts, with more than 1 gigawatt expected to come online over the next 12 to 24 months. Management noted that this contracted capacity positions the company to convert backlog into revenue as infrastructure is delivered and deployed.Despite temporary delays from a third-party data center provider, CoreWeave stated that these issues do not reduce the total value of customer contracts. Affected customers have agreed to adjusted delivery schedules while preserving full contract value and capacity duration, ensuring backlog integrity remains intact.In addition, driven by strong backlog growth and sustained demand for its cloud services, the company expects 2026 capital expenditure to be well more than double 2025 levels. These infrastructure investments will deepen the company’s competitive advantages and support continued hypergrowth. Management highlighted that the combination of long-term contracts, diversified customers, investment-grade exposure and expanding infrastructure underpins its ability to execute against the backlog.Taking a Look at Competitors’ BacklogAmazon.com, Inc.’s AMZN AWS backlog continued to strengthen in third-quarter 2025, reaching $200 billion by the quarter’s end, reflecting robust long-term customer commitments. This figure excludes several large, unannounced deals signed in October that alone exceeded the total deal volume recorded during the entire third quarter. The expanding backlog underscores accelerating demand for AWS infrastructure, core cloud services and AI workloads, as customers increasingly choose AWS for its functionality, security, scale and operational reliability. Management highlighted that backlog growth provides strong visibility into future revenue and reinforces confidence in sustained momentum, supported by rising enterprise and government adoption and continued capacity expansion across the AWS platform.Microsoft Corporation’s MSFT backlog, measured as remaining performance obligations (RPO), reached a record high of approximately $392 billion, reflecting a 51% year-over-year increase driven by strong demand for its cloud and AI services, especially Azure and enterprise software offerings. Management noted that commercial bookings were significantly ahead of expectations, with a rising number of large contracts contributing to the backlog. The weighted average duration of these obligations is about two years, indicating that most of this backlog is expected to convert into revenue in the near term. This expanding backlog underscores growing customer commitments and strong visibility into future revenue.CRWV Price Performance, Valuation and EstimatesShares of CoreWeave have gained 12.2% over the past month against the Internet Software industry’s decline of 10.1%.Image Source: Zacks Investment ResearchIn terms of Price/Book, CRWV’s shares are trading at 9.49X, way higher than the Internet Software industry’s 5.45X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for CRWV’s earnings for 2025 has been revised downward over the past 60 days.Image Source: Zacks Investment ResearchCRWV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks