CRWV Raises Capex Guidance
CRWV guides capex between $11.5B-$13.5B for next quarter and $35B-$39B for FY26
CRWV DA Davidson comments Looking ahead to next quarter, management is guiding capex between the range of $11.5B-$13.5B, while also raising year end capex guidance to be between $35B and $39B for FY26.
Management was also asked about the possibility of delays due to increasing push back against data centers, and management said they are not concerned and do not expect guidance to be impacted by any potential delay.
We maintain a NEUTRAL rating with a $100 price target.
While the earnings report represents a step forward, we believe that even if returns exit the year at 4% (implied by margin guidance), cost of capital has gone in the wrong direction up to 9%, which means CRWV continues to destroy value with every data center it builds.