Cerebras Posts Surprise Q3 Profit and Raises 2026 Revenue Guidance
Cerebras (CBRS) reported Q3 EPS of $0.13 against a -$0.13 consensus and raised full-year revenue guidance to $940M-$960M, sending shares up 11.2%.
Cerebras Systems (CBRS) reported third-quarter adjusted profit of $29.82 million, or $0.13 per share, against an adjusted loss of $10.86 million a year earlier and an expected $38.4 million loss. Revenue was $230.87 million, with core cloud revenue up 272% to $144.9 million.
The chipmaker raised its full-year 2026 revenue guidance to $940 million to $960 million, from a prior range of $880 million to $890 million, above the analyst average of $887.04 million, and forecast fourth-quarter revenue of $310 million to $330 million. It reiterated plans to triple revenue in 2027 and said it signed a cloud deal with Microsoft, with details to be shared next year.
On the earnings call, CEO Andrew Feldman said delivery delays under Cerebras' $20 billion multi-year OpenAI deal stemmed from industry-wide shortages of land and power rather than chip manufacturing constraints, according to Reuters. Adjusted cloud and services revenue, which reflects the OpenAI deal, more than tripled to $144.9 million in the quarter. The company also said 700 megawatts of data-center capacity is under contract, alongside two additional hyperscaler wins beyond Microsoft.
Cerebras shares rose 11.2% to $108.72 in Friday mid-day trading, from a prior close of $97.75, on volume of 36,225,161 shares, a 338% increase over the average session volume of 8,262,584. The delayed quote showed the stock at $108.72, up 11.22%. The gains, if they hold, would add over $3 billion to the company's market value. As of Thursday's close the stock was down 47.2% from its May IPO price of $185.
The print was not without caveats. A report said Cerebras delayed delivery of AI capacity for OpenAI because of data-center buildout delays, and a law firm announced an investor-claims investigation. Analysts were split: Freedom Capital upgraded the stock to strong-buy, Jefferies raised it to outperform, Weiss Ratings cut it to sell (d-), UBS lowered its price target to $155 while keeping a buy rating, and Mizuho cut its target to $240 with an outperform rating. The consensus rating is Moderate Buy with an average price target of $237.80, well above the current price. Insiders sold 1,874,452 shares worth $383.7 million over the past three months, while institutional flows were net positive.
Delivery and demand remain open questions
Cerebras is due to report fourth-quarter results after the holiday season, and the Microsoft cloud deal details are expected next year. Whether the company can convert its $20 billion OpenAI commitment into delivered capacity amid land and power shortages remains the open question.