Cerebras Systems (NASDAQ:CBRS) Announces Quarterly Earnings Results, Misses Expectations 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 business had revenue of $209.87 million for the quarter. The firm’s quarterly 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 Down 5.8%

NASDAQ:CBRS traded down $13.37 during mid-day trading on Friday, reaching $217.65. 8,245,713 shares of the stock were exchanged, compared to its average volume of 6,950,342. The business’s fifty day moving average price is $208.86. Cerebras Systems has a 1-year low of $160.81 and a 1-year high of $386.34.

Key Stories Impacting Cerebras Systems

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

• Positive Sentiment: Cerebras announced that it will livestream its 2026 SUPERNOVA event, which will feature product announcements, keynotes and demonstrations of ultra-fast AI inference applications. The event could provide a near-term catalyst if the company unveils commercially meaningful products or partnerships. Cerebras to Host Livestream of 2026 SUPERNOVA Event
• Positive Sentiment: The company’s cloud-services revenue surged 287% year over year, while core revenue increased 103%, highlighting strong demand for fast AI inference. Cerebras also raised its 2026 revenue outlook to $880 million-$890 million, above the roughly $865 million consensus, and guided for third-quarter revenue of $214 million-$216 million. CBRS Q2 Earnings Beat Estimates as Cloud Revenues Surge 287%
• Positive Sentiment: Cerebras said it is powering an “Ultrafast” service tier for OpenAI’s GPT-5.6 Sol API, strengthening its relationship with a major AI customer and supporting the company’s inference-growth narrative. Cerebras Powers Ultrafast Mode for OpenAI’s GPT-5.6 Sol
• Positive Sentiment: Analysts remain broadly constructive: Wedbush raised its target to $290, while Rosenblatt reaffirmed a $300 target and “buy” rating. Morgan Stanley also cited additional upside from capacity expansion and AI demand.
• Neutral Sentiment: Cerebras plans to expand data-center and manufacturing capacity to support anticipated 2027 growth. The investment may enable future sales but could also increase execution and capital requirements. CBRS Q2 Earnings Call Focuses on Capacity for 2027 Growth
• Negative Sentiment: Second-quarter revenue missed Wall Street expectations, and the company reported a much larger-than-expected loss under the reported EPS measure. The disappointing results overshadowed the guidance increase and raised concerns about profitability, execution and whether Cerebras can challenge Nvidia effectively. Cerebras slumps as mixed quarterly results test AI growth narrative

Analyst Ratings Changes

CBRS has been the subject of a number of recent analyst reports. Barclays began coverage on Cerebras Systems in a report on Monday, June 8th. They issued an “overweight” rating and a $280.00 price objective for the company. Wall Street Zen raised Cerebras Systems from a “strong sell” rating to a “sell” rating in a report on Sunday, June 21st. Mizuho cut 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 note on Thursday. Craig Hallum began coverage on shares of Cerebras Systems in a report on Monday, June 8th. They issued a “buy” rating and a $325.00 price objective for the company. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $299.90.

Insider Buying and Selling at Cerebras Systems

In other news, CAO Yagnesh Patel sold 6,079 shares of Cerebras Systems stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $171.53, for a total value of $1,042,730.87. Following the transaction, the chief accounting officer owned 4,000 shares of the company’s stock, valued at $686,120. The trade was a 60.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Dhiraj Mallick sold 36,131 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $169.28, for a total transaction of $6,116,255.68. Following the sale, the chief operating officer directly owned 33,314 shares of the company’s stock, valued at approximately $5,639,393.92. This represents a 52.03% 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. In the last quarter, insiders have sold 117,547 shares of company stock worth $20,676,799.

About Cerebras Systems

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.