Cerebras Systems (NASDAQ:CBRS) Issues Quarterly Earnings Results, Misses Estimates By $2.77 EPS

Cerebras Systems (NASDAQ:CBRS) posted its earnings results on Wednesday. The company reported ($2.98) EPS for the quarter, missing the consensus estimate of ($0.21) by ($2.77), FiscalAI reports. The company had revenue of $209.87 million during the quarter. The business’s revenue was up 74.3% on a year-over-year basis.

Here are the key takeaways from Cerebras Systems’ conference call:

• Q2 exceeded guidance, with core revenue of $209.9 million, up 103% year over year, core gross margin of 40.6%, and core operating margin of negative 16%.
• Management raised its full-year 2026 outlook to core revenue of $880 million–$890 million, gross margin of 41%–43%, and operating margin of negative 19% to negative 17%; it expects Q3 gross margin to be the low point before improving in Q4.
• Cerebras reported $25.4 billion of remaining performance obligations and expects to more than triple core revenue in 2027, supported by more than 600 megawatts of data-center capacity secured or under contract and manufacturing capacity expected to increase more than tenfold in 2026.
• The company is expanding its inference opportunity through disaggregated solutions with AMD and AWS, combining GPU or Trainium prefill with Cerebras decode; management said the AMD configuration can preserve Cerebras speed while increasing throughput by up to 5x.
• AWS deployment is expected to become generally available through Amazon Bedrock in Q1 2027, while additional hyperscaler revenue is expected from mid-2027; management acknowledged that OpenAI will remain a meaningful customer but should decline as a percentage of revenue over time.

Cerebras Systems Stock Performance

Shares of CBRS stock traded down $28.85 during trading hours on Thursday, hitting $233.21. 7,108,994 shares of the company’s stock were exchanged, compared to its average volume of 6,765,466. Cerebras Systems has a 12-month low of $160.81 and a 12-month high of $386.34. The stock has a 50 day simple moving average of $208.55.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on CBRS shares. Zacks Research raised Cerebras Systems to a “hold” rating in a report on Tuesday, June 9th. Wedbush raised their target price on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research note on Thursday. Freedom Capital upgraded shares of Cerebras Systems to a “hold” rating in a research report on Monday, June 29th. UBS Group reissued a “buy” rating and issued a $330.00 price target on shares of Cerebras Systems in a report on Thursday. Finally, Mizuho lowered their price objective on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $301.90.

Insider Buying and Selling at Cerebras Systems

In related news, COO Dhiraj Mallick sold 10,000 shares of the stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $206.51, for a total transaction of $2,065,100.00. Following the transaction, the chief operating officer owned 10,000 shares of the company’s stock, valued at approximately $2,065,100. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Sean Lie sold 10,033 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $170.07, for a total transaction of $1,706,312.31. Following the sale, the chief technology officer owned 10,033 shares of the company’s stock, valued at approximately $1,706,312.31. The trade was a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 117,547 shares of company stock worth $20,676,799 over the last 90 days.

Trending Headlines about Cerebras Systems

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Cerebras reported second-quarter revenue of $209.9 million, up 74.3% year over year. Its fast-inference cloud business grew 287% to $127.7 million, highlighting continued demand for its AI systems. Cerebras raises annual targets on strong AI chip demand
• Positive Sentiment: The company raised its 2026 revenue forecast to $880 million-$890 million, above the $864.6 million analyst consensus, and projected third-quarter revenue of $214 million-$216 million versus expectations of $211 million.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating with a $300 price target, while Mizuho maintained an “outperform” rating and set a $300 target after lowering its previous target from $310. Both targets imply approximately 14.5% potential upside from the referenced price. Analyst ratings and price targets
• Positive Sentiment: A planned Minnesota AI data-center campus with CleanCore Solutions, which is rebranding as Zone Frontier, represents approximately $800 million of contracted value over an initial 10-year term and could exceed $3 billion if extended. CleanCore Minnesota AI data-center update
• Negative Sentiment: Adjusted earnings were a loss of $2.98 per share, far below the expected loss of $0.21. The sharp bottom-line miss overshadowed the revenue growth and raised concerns about profitability and execution.
• Negative Sentiment: Investors also questioned whether Cerebras can effectively challenge Nvidia in AI chips. The results have therefore weakened the near-term growth narrative, even though management raised its revenue and gross-margin outlook. Cerebras slumps as mixed quarterly results test AI growth narrative

Cerebras Systems Company Profile

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.