Cerebras Systems (NASDAQ:CBRS) Releases Earnings Results, Beats Estimates By $0.26 EPS

Cerebras Systems (NASDAQ:CBRS) issued its earnings results on Thursday. The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.26, Zacks reports. The firm had revenue of $230.87 million during the quarter.

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

• Cerebras reported record Q3 core revenue of $231 million, up 70% year over year and 7% above the midpoint of guidance, and positive core net income of $30 million. Management raised full-year 2026 core revenue guidance to $940 million–$960 million and expects Q4 revenue of $310 million–$330 million.
• Gross margin and profitability are expected to improve: Q3 core gross margin was 41%, while management forecasts 47%–49% in Q4 and approximately break-even core operating margin. The company attributed expected improvement partly to higher-margin hardware shipments, while noting that customer equipment rentals continue to weigh on cloud margins.
• Cerebras added Microsoft and Oracle to its customer roster, bringing its total to three hyperscalers won in the past six months alongside AWS. Oracle’s planned inference service is expected to launch in summer 2027; Microsoft deal details and expected revenue timing are to be disclosed next year.
• Data-center availability is limiting cloud growth: management expects Q4 cloud revenue to be roughly flat sequentially, despite demand outpacing supply. The company said OpenAI capacity deliveries are behind schedule due to land, power and construction delays; it has accounted for potential delay credits in RPO, and estimated less than 5% of committed megawatts could be subject to cancellation this year, though no cancellations have occurred.
• Management said CS-4 shipments have begun and the next-generation WSE-5 is already running models, with CS-5 production expected in early summer 2027 and more than double CS-4’s speed. The company also said its disaggregated inference offering is live and can increase tokens per megawatt, while it expects revenue to triple in 2027.

Cerebras Systems Stock Performance

Shares of Cerebras Systems stock traded up $6.44 during mid-day trading on Friday, hitting $104.19. 21,113,597 shares of the stock were exchanged, compared to its average volume of 8,130,124. Cerebras Systems has a 12 month low of $77.84 and a 12 month high of $386.34. The firm’s 50-day moving average is $152.65. The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02. The stock has a market capitalization of $24.75 billion and a P/E ratio of -1,303.29.

Insider Buying and Selling

In other Cerebras Systems news, CEO Andrew D. Feldman sold 237,559 shares of the business’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $199.27, for a total value of $47,338,381.93. Following the transaction, the chief executive officer owned 16,853 shares of the company’s stock, valued at approximately $3,358,297.31. The trade was a 93.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Dhiraj Mallick sold 396,000 shares of the business’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total value of $80,799,840.00. Following the completion of the transaction, the chief operating officer directly owned 396,000 shares in the company, valued at approximately $80,799,840. This represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,874,452 shares of company stock valued at $383,719,154 over the last quarter.

Hedge Funds Weigh In On Cerebras Systems

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Wealth Enhancement Trust Services Inc. purchased a new stake in Cerebras Systems during the third quarter worth about $26,000. Blue Bell Private Wealth Management LLC purchased a new position in Cerebras Systems in the third quarter valued at about $31,000. GK Wealth Management LLC purchased a new position in Cerebras Systems in the third quarter valued at about $31,000. Silicon Valley Capital Partners bought a new position in shares of Cerebras Systems during the 2nd quarter valued at approximately $44,000. Finally, Torren Management LLC bought a new position in shares of Cerebras Systems during the 3rd quarter valued at approximately $39,000.

Key Stories Impacting Cerebras Systems

These are some of the CBRS stories that stood out recently:

• Positive Sentiment: Cloud growth and customer wins supported the outlook: core cloud revenue rose 272% year over year, the company announced Microsoft as a customer and reported wins with two new hyperscalers, with 700 megawatts of data-center capacity under contract. CNBC report on results and Microsoft deal
• Positive Sentiment: Call-option trading was above its typical level, suggesting increased speculative bullish interest, though options activity is not a guarantee of future performance.
• Negative Sentiment: Cerebras has delayed delivery of AI capacity for OpenAI because of data-center construction delays, creating a near-term execution risk. Separately, a law firm announced an investor-claims investigation, which could add legal uncertainty. Report on OpenAI delivery delay Investor investigation announcement

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CBRS. TD Cowen decreased their price target on shares of Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a research note on Monday, October 19th. Mizuho set a $240.00 price objective on shares of Cerebras Systems in a research note on Friday. Weiss Ratings lowered shares of Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a research note on Wednesday, November 4th. Rosenblatt Securities reiterated a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a report on Wednesday, August 19th. Finally, Wedbush set a $205.00 target price on shares of Cerebras Systems in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $247.30.

Cerebras Systems Company Profile

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software. The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.