Cerebras Systems (NASDAQ:CBRS) Shares Gap Up on Better-Than-Expected Earnings

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $97.75, but opened at $108.70. Cerebras Systems shares last traded at $109.99, with a volume of 10,852,729 shares trading hands.

The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.26. The firm had revenue of $230.87 million for the quarter.

Top Cerebras Systems Stories

Investors following CBRS have been watching these stories:

• Positive Sentiment: Management raised its full-year 2026 revenue outlook to $940 million–$960 million, versus roughly $887 million expected, and forecast fourth-quarter revenue of $310 million–$330 million, also above consensus. The company said it expects substantial growth in 2027. Cerebras posts record Q3 revenue and projects tripling in 2027
• Negative Sentiment: Some execution risks remain: direct sales of AI chips fell, and Cerebras has delayed delivery of AI capacity to OpenAI amid data-center construction delays. These issues could limit near-term revenue realization despite strong demand. Cerebras delays OpenAI capacity delivery
• Negative Sentiment: A law firm is investigating potential investor claims, while Needham cut its price target from $300 to $200, though it maintained a Buy rating. These headlines may add caution around the stock’s valuation and volatility. Pomerantz investor investigation notice

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Jefferies Financial Group raised Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. UBS Group decreased their price objective on Cerebras Systems from $330.00 to $250.00 and set a “buy” rating for the company in a research report on Monday, November 2nd. Mizuho decreased their price objective on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a research report on Thursday, August 13th. Rosenblatt Securities reaffirmed a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, August 19th. Finally, Morgan Stanley dropped their target price on Cerebras Systems from $279.00 to $178.00 and set an “overweight” rating on the stock in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Cerebras Systems has a consensus rating of “Moderate Buy” and an average target price of $251.80.

Insider Transactions at Cerebras Systems

In related news, Director Steven Vassallo sold 50,000 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the transaction, the director owned 171,977 shares of the company’s stock, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew Feldman sold 237,559 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the transaction, the chief executive officer directly owned 16,853 shares in the company, valued at approximately $3,358,297.31. The trade was a 93.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,874,452 shares of company stock valued at $383,719,154 in the last ninety days.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Wealth Enhancement Trust Services Inc. acquired a new stake in shares of Cerebras Systems in the 3rd quarter valued at $26,000. GK Wealth Management LLC acquired a new position in Cerebras Systems during the third quarter worth $31,000. Blue Bell Private Wealth Management LLC bought a new position in Cerebras Systems during the third quarter valued at about $31,000. Torren Management LLC bought a new position in Cerebras Systems during the third quarter valued at about $39,000. Finally, Silicon Valley Capital Partners bought a new position in Cerebras Systems during the second quarter valued at about $44,000.

Cerebras Systems Stock Up 8.6%

The company has a 50-day moving average price of $152.65. The company has a market capitalization of $25.23 billion and a P/E ratio of -1,344.96. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02.

About Cerebras Systems

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.