CoreWeave Inc. (NASDAQ:CRWV) raised prices across its artificial intelligence computing offerings in July and is passing along rising hardware costs to customers, as demand continues to accelerate.
A Quarter of Pricing Power
CFO Nitin Agrawal told analysts on Tuesday’s earnings call that the increase was “an approximately 25% increase across SKUs in response to the current demand environment.”
He added that CoreWeave is separately passing through rising component costs to customers, including pricier GPUs, layering hardware inflation on top of the base price hike.
The company noted that the move was a reflection of the return on investment customers are seeing as they shift more of their workloads toward inference.
Last week, SanDisk Corp. (NASDAQ:SNDK) CEO David Goeckeler said AI demand has shifted customer conversations from routine quarterly price negotiations to long-term strategic partnerships, with some of it’s largest customers already returning to expand multi-year agreements just one quarter after signing them.
Contribution Margins Jump 5 to 10 Points on New Deals
CEO Mike Intrator said contracts signed in the second quarter carry contribution margins 5 to 10 percentage points above those signed in recent quarters, with much of that gain concentrated in Vera Rubin SKU, built on Nvidia Corp.‘s (NASDAQ:NVDA) chip platform.
“The demand for the Vera Rubin platform is enormous,” Intrator said, adding that CoreWeave’s pricing power in delivering that infrastructure “really bodes well.”
Loss Narrows, Revenue Tops Estimates
CoreWeave reported an adjusted loss of $1.03 per share for the second quarter, narrower than the $1.22 loss analysts had expected, according to Benzinga Pro. Revenue came in at $2.58 billion, compared to the $2.56 billion analysts forecast.
The company raised its full-year 2026 revenue guidance to a range of $12.4 billion to $13.2 billion, and guided third-quarter revenue to a range of $3.45 billion to $3.6 billion.
Price Action: The shares closed 2.42% higher on Tuesday at $90.32 and rose further 15.72% in extended trading on the earnings announcement.
Benzinga edge rankings shows that CoreWeave stock has a Momentum score in the 6th percentile and a negative price trend in the short, medium and the long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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