Cerebras Systems tumbles 14% on earnings, revenue miss

Investing.com -- Cerebras Systems Inc (NASDAQ: CBRS) shares fell 14% in after-hours trading Wednesday after the AI infrastructure company reported second quarter results that missed analyst expectations on both earnings and revenue.

The company posted an adjusted loss of $2.98 per share for the quarter ended June 30, significantly wider than the analyst estimate of a loss of $0.18 per share. Revenue came in at $180.1 million, below the $193.6 million consensus and down 7% from $193.6 million in the same quarter last year. However, core revenue, which excludes data center pass-through revenues, reached $209.9 million, up 103% YoY.

Cloud and other services revenue showed strong growth, with GAAP cloud revenue of $126.0 million, up 281% YoY, while core cloud revenue reached $127.7 million, up 287% YoY. Core gross margin improved to 41%, up approximately 940 basis points from the second quarter of 2025, while core operating margin improved to negative 16%, up approximately 2,600 basis points YoY.

"This was an outstanding quarter for Cerebras. Core revenue more than doubled to $210 million, and our cloud business nearly quadrupled year-over-year," said Andrew Feldman, Cerebras co-founder and CEO.

For the third quarter of 2026, Cerebras guided to core revenue of $214 million to $216 million, with the midpoint of $215 million. The company raised its full-year 2026 core revenue guidance to $880 million to $890 million, with core gross margin expected in the range of 41% to 43% and core operating margin between negative 19% and negative 17%.

The company reported $25.4 billion in remaining performance obligations as of June 30, 2026, and announced it has secured 600 MW of data center capacity under contract.

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