Cerebras Lifts Outlook as Cloud Revenue Soars 272%

Cerebras Systems has raised its full-year 2026 outlook after posting record core revenue for the third quarter, driven by a surge in its cloud business, the AI chipmaker announced on Thursday. Core revenue rose 70% year on year to US$230.9 million in the three months to September 30.

The Sunnyvale, California-based company’s shares jumped 19.2% to US$116.54 in premarket trading on Friday, Yahoo Finance reported, even as the wider market came under pressure from a sell-off in chip stocks.

Cloud business drives growth

Core cloud and other services revenue climbed 272% to US$144.9 million, according to the company’s results statement. On a GAAP basis, total revenue grew 55% to US$210.8 million, while hardware revenue fell to US$68.9 million from US$96.8 million a year earlier.

Cerebras reported a GAAP net loss of US$161.2 million, or 67 cents a share, compared with a loss of US$22.2 million a year earlier. Its core gross margin came in at 41%, which the company said was higher both sequentially and year on year. Yahoo Finance said core revenue beat analysts’ consensus of about US$215 million and that the company recorded roughly US$30 million in core net income, its first positive quarter on that measure.

Chief financial officer Bob Komin said the company had beaten its guidance across the board for a third straight quarter. Chief executive Andrew Feldman said Cerebras continues to “expect to triple revenue in 2027.”

New customers and capacity

The company said Oracle will integrate Cerebras inference into Oracle Cloud Infrastructure, with availability in 2027, and that it had signed a cloud deal with an unnamed top-three hyperscaler. Yahoo Finance reported that Microsoft signed a cloud inference agreement with Cerebras in October, adding to existing partnerships with AWS and Oracle; the financial value was not disclosed.

Cerebras said it had secured 700 gross megawatts of data centre capacity for delivery by the end of 2027, including contracts in Norway and Finland. It reported US$26.1 billion in remaining performance obligations and US$7.8 billion in cash, restricted cash and short-term investments as of September 30.

Morgan Stanley reiterated its Overweight rating and US$178 price target, according to Yahoo Finance, while flagging delays in deliveries under Cerebras’ agreement with OpenAI linked to data centre construction.

What’s next

For the fourth quarter, Cerebras guided core revenue of US$310 million to US$330 million, with a core gross margin of 47% to 49%. Yahoo Finance said the revenue forecast was about 18% above analysts’ consensus. For the full year, the company now expects core revenue of US$940 million to US$960 million. Cerebras said it will appear at the Barclays Global Technology Conference on December 9.

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