CoreWeave Q3 Revenue Doubles on AI Demand, Shares Drop After 2025 Forecast Cut

South Africa

South African equities advanced as risk appetite improved, with the Top 40 up 1.99% to 103,466 points and the All Share 1.83% higher at 110,841 points. Sibanye Stillwater settled its US $215 million dispute with Appian Capital Advisory, removing a significant legal overhang. Vodacom reported a 32% rise in headline earnings per share to 467 cents, driven by pan-African growth and disciplined cost control. The World Bank approved a R15.9 billion loan to strengthen municipal infrastructure funding, supporting medium-term fiscal sustainability. Broader sentiment improved amid stable inflation expectations and renewed foreign inflows.

Europe

European markets mirrored global optimism, with the STOXX 600 gaining 1.4% in its best session in three weeks as easing fiscal uncertainty in the United States lifted sentiment. Banks and consumer sectors led gains, with Commerzbank up 6.6% after a Deutsche Bank upgrade and Diageo up 5.2% following the appointment of former Tesco chief Dave Lewis as CEO. Eurozone investor confidence weakened further, signalling near-term growth risks ahead of third-quarter GDP data. Siemens is expected to reduce its 35 billion euro Healthineers stake, improving flexibility for strategic mergers and acquisitions.

United States

US equities rallied sharply as artificial intelligence leaders and easing political tensions drove sentiment. Nvidia rose 5.8%, Palantir gained 8.8%, and Tesla advanced 3.7%, while airlines slipped amid operational disruptions. With 83% of S&P 500 companies beating quarterly expectations, corporate earnings remain robust. Investor attention is shifting toward upcoming inflation data and Federal Reserve commentary for signals on rate path stability and the durability of earnings-led equity momentum.

Asia

Asian markets extended global gains, supported by strong US leads and optimism over AI-driven growth. Japan’s Nikkei rose 0.9% to 38,190 while the Topix added 0.5%. South Korea’s Kospi gained 1.9% to 2,693, with Samsung Electronics up 5% and SK Hynix rising 4.6%. Hong Kong’s Hang Seng added 0.4%, mainland China’s CSI 300 was flat, and Australia’s ASX 200 advanced 0.25%. Orix and Qatar Investment Authority launched a US $2.5 billion private equity fund focused on Japanese succession and carve-out opportunities. Sentiment remained broadly constructive amid stable global liquidity.

Currencies

The rand firmed to R17.23 per US dollar in early trade, supported by improved global risk sentiment and anticipation of the mid-term budget for fiscal guidance. The dollar index eased to 104.8 as investors digested progress on the US funding deal. The yen weakened to 152.2 per dollar amid risk-on positioning and diverging yield expectations, while the euro traded around 1.089. Emerging-market currencies broadly strengthened as falling US real yields revived carry demand. Investors remain alert to year-end volatility as fiscal and policy outlooks drive cross-asset positioning.

Commodities

Gold advanced to near three-week highs as expectations of a potential Federal Reserve rate cut in December and easing US fiscal tensions bolstered safe-haven demand. Investors maintained exposure to the metal amid subdued yields and shifting risk sentiment. Oil prices retreated in Asian trade as supply concerns re-emerged despite OPEC+ maintaining its December output increase and signalling a pause in early 2026. Sanctions on Russian producers tightened trade flows, while storage builds in Asia underscored continued imbalances in global energy markets.

Tiger Brands Limited (TBS) +2.42%

Tiger Brands anticipates a standout FY25, with earnings per share expected to rise 25–30% and headline earnings up 10–15%, underpinned by broad-based revenue and margin improvement. Despite constrained consumer spending, volume growth across key divisions—particularly Milling and Baking, Grains, and Home Care—drove performance. Continuous improvement and portfolio optimisation remain central, with disposals of non-core assets such as Chococam and Langeberg & Ashton Foods aligning with strategic focus. The group’s streamlined portfolio and efficiency gains signal sustainable margin resilience ahead of its FY25 results release on 26 November 2025.

Shoprite Holdings Limited (SHP) -2.29%

Shoprite reported an 8% rise in group sales for Q1 FY26, supported by strong domestic execution and expanding regional operations. South African supermarkets grew 7.9%, maintaining a 1.7x outperformance versus market peers, while inflation across core banners averaged just 1.4%, highlighting disciplined price management. Non-RSA supermarkets delivered 12.9% growth in rand terms, with continued momentum across seven markets. The group added a net 81 stores, including 72 in South Africa, as it deepens its ecosystem strategy. The sale of non-RSA furniture operations concluded post-period, strengthening Shoprite’s focus on core food and pharmacy retail segments.

Vodacom Group Limited (VOD) +0.10%

Vodacom delivered a robust first-half performance for FY26, with revenue up 10.9% to R81.6 billion and EBITDA rising 14.7% to R30.5 billion, exceeding medium-term growth targets. Service revenue climbed 12.2%, underpinned by continued expansion in financial services, where revenue advanced 20.3% to R8 billion, now contributing over 12% of group service revenue. The customer base grew 8.6% to 223 million across markets, including Safaricom. Headline earnings per share rose 32.3% to 467 cents, supporting a 15.8% higher interim dividend of 330 cents, underscoring Vodacom’s solid cash generation and disciplined capital allocation.

Omnia Holdings Limited (OMN) -1.09%

Omnia delivered a robust interim performance for the six months to 30 September 2025, achieving strong operating profit growth through disciplined capital management, higher core volumes, and operational agility. The Group’s integrated manufacturing and supply chain mitigated extended supplier shutdowns, supporting continued growth across agriculture, mining, and chemicals. Omnia maintained a solid balance sheet and reaffirmed its A+/A1 credit ratings, positioning it for global expansion and sustainable value creation. ESG performance remained stable, with modest improvements in renewable energy use and water efficiency, underscoring the company’s commitment to sustainability, safety, and long-term stakeholder value.

Telkom SA SOC Limited (TKG) +7.61%

Telkom expects a sharp rise in interim earnings for the six months to 30 September 2025, with headline earnings per share from continuing operations projected to increase 105–115% to 301–316 cents, and basic EPS up 80–90% to around 312–329 cents. The strong rebound reflects the absence of prior-year one-off costs linked to the Telkom Retirement Fund derecognition and restructuring, alongside improved operational performance and structural cost control. Including discontinued operations, HEPS is set to rise 57–65%. The group’s continued focus on efficiency and balance sheet optimisation supports sustainable earnings momentum into FY2026.

CoreWeave Inc. (CRWV) +1.54%

CoreWeave posted robust Q3 results with revenue more than doubling year-on-year to US $1.36 billion, ahead of estimates, fuelled by surging demand for AI cloud services and major contracts with Meta and OpenAI worth a combined US $20.5 billion. However, shares fell over 6% after it cut its 2025 revenue forecast to US $5.05–5.15 billion due to a partner data-centre delay. Capital expenditure is set to more than double to US $12–14 billion next year as it expands GPU capacity. Operating margins eased to 16% amid higher infrastructure costs, reflecting growing competition and the capital intensity of scaling AI cloud operations.

Paramount Skydance Corporation (PSKY) +0.99%

Paramount Skydance, in its first results since merging in August, announced plans to invest over US $1.5 billion in new programming next year to accelerate streaming growth and revitalise its film studio. The group forecasts revenue of US $30 billion by 2026 as profitability improves through integration and cost efficiencies. Q3 revenue rose to US $6.7 billion, with streaming up 17% and film revenue surging 30% following Skydance consolidation, offsetting weaker television advertising. CEO David Ellison outlined a unified technology platform and US $3 billion cost-saving plan, including 1,600 additional job cuts, positioning the studio for sustainable, tech-driven expansion.

Sony Group Corporation (6758) +0.59%

Sony delivered a stronger-than-expected Q2, with operating profit up 10% year-on-year to ¥429 billion, exceeding forecasts of ¥398 billion, and revenue rising 5% to ¥3.11 trillion. The group raised its full-year operating profit outlook by 8% and revenue by 3%, citing solid performance in Imaging & Sensing Solutions and Music. Gaming and network services, led by PlayStation and digital subscriptions, rose 3.9% to ¥1.11 trillion. Music sales surged over 20%, and sensing revenue grew nearly 15%. Sony announced a ¥100 billion share buyback, reinforcing shareholder returns, while confirming a sequel to its record-breaking Netflix hit KPop Demon Hunters.

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