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Cerebras surges after raising full-year outlook and announcing Microsoft deal

Cerebras shares jumped roughly 15% in after-hours trading following third-quarter core revenue of $230.9 million, raised guidance for fiscal 2026, and the announcement of a deal with Microsoft.

A 5-minute candlestick chart for Cerebras (CBRS) showing a sharp after-hours surge of over 14% to nearly $112.
Image: @TrendSpider

Cerebras reported third-quarter core revenue of $230.9 million, representing a 70% increase year over year and topping analyst expectations of $215 million, according to financial market update account Wall St Engine. Total GAAP revenue rose 55% to $210.8 million, driven by a 265% surge in Cloud & Other Services revenue to $141.9 million. In contrast, hardware revenue declined 29% year over year to $68.9 million. The company concluded the quarter with remaining performance obligations of $26.1 billion and $7.8 billion in liquidity.[1][2][5]

Profitability remained mixed for the quarter. Cerebras delivered a core gross margin of 41%, up 30 basis points from a year earlier, alongside a GAAP gross margin of 20% and a core operating margin of -14%. TrendSpider reported that adjusted earnings per share came in at $(0.67), missing the consensus expectation of $(0.14), while GAAP sales of $210.8 million also missed an estimated $214.7 million.[1][2][6][7]

Buoyed by strong AI cloud demand, Cerebras raised its fiscal 2026 core revenue forecast to between $940 million and $960 million, comfortably ahead of the $887 million consensus estimate. Fourth-quarter core revenue is projected to reach $310 million to $330 million, beating expectations of $271 million. Alongside earnings, the company disclosed a partnership deal with Microsoft, CNBC reported, pushing Cerebras shares up roughly 15% in extended trading from a regular-session close of $97.75.[1][2][3][4][7]

Key facts

  • Cerebras posted Q3 core revenue of $230.9 million, up 70% year over year, while GAAP revenue rose 55% to $210.8 million.
  • Cloud & Other Services revenue jumped 265% year over year to $141.9 million, while hardware sales dropped 29% to $68.9 million.
  • Remaining performance obligations reached $26.1 billion, and liquidity stood at $7.8 billion.
  • TrendSpider reported Q3 adjusted EPS was $(0.67), missing the consensus estimate of $(0.14).
  • Cerebras increased its fiscal 2026 core revenue guidance to $940 million to $960 million, above the $887 million consensus estimate.
  • The company forecast Q4 core revenue of roughly $310 million to $330 million against expectations of $271 million.
  • Cerebras announced a deal with Microsoft alongside its quarterly results.
  • Shares of CBRS surged about 15% in after-hours trading following the announcements.

Sources · 5 sources

  1. SB

    Shay Boloor@StockSavvyShayPost on X ·

    $CBRS CRUSHED THEIR Q3 EARNINGS • Revenue $231M vs Est. $215M • Gross Margin 41% vs. Est. 39% • Cloud Services: $142M (+265% YoY) • RPO $26.1B FY26 Guidance • Revenue $950M vs Est. $887M • Gross Margin 43% vs. Est. 42% https://t.co/xWgG5Rx6dF

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  2. WS

    Wall St Engine@wallstenginePost on X ·

    CEREBRAS $CBRS Q3’26 EARNINGS HIGHLIGHTS 🔹 Core Revenue: $230.9M (Est. $215M) 🟢; +70% YoY 🔹 GAAP Revenue: $210.8M; +55% YoY 🔹 Core Gross Margin: 41%; +30 bps YoY 🔹 GAAP Gross Margin: 20% Raises FY26 Guide: 🔹 Core Revenue: $940M-$960M (Est. $887M) 🟢 🔹 Core Gross Margin: 42%-44% 🔹 Core Operating Margin: -10% to -8% Q4 Guide: 🔹 Core Revenue: ~$310M-$330M (Est. $271M) 🟢 🔹 Core Gross Margin: 47%-49% 🔹 Core Operating Margin: -1% to 1% Segment Revenue: 🔹 Cloud & Other Services: $141.9M; +265% YoY 🔹 Hardware: $68,881K; -29% YoY Announcements: 🔹 Data Center Capacity: 700 MW under contract for delivery by end-2027 🔹 CS-4: Up to 30x faster inference; soon in full production 🔹 CS-5: Up to 10,000 tokens per second per user; targeted for early Summer 2027 🔹 Bilt: Serving eight million consumers and 50,000 businesses Other Q3 Metrics: 🔹 Remaining Performance Obligations: $26.1B 🔹 Core Operating Margin: -14% 🔹 GAAP EPS: -$0.67 🔹 Liquidity: $7.8B; Debt Capacity: $850M Comments: 🔸 “We’re giving customers more ways to access our technology and scale with us be it through direct system sales, Cerebras Cloud or third-party cloud providers.”

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  3. CB

    Crypto BriefingArticle ·

    Cerebras beats revenue expectations and lands Microsoft deal Cerebras' growth and strategic partnerships highlight its potential to significantly impact the AI infrastructure market despite current losses. The post Cerebras beats revenue expectations and lands Microsoft deal appeared first on Crypto Briefing .

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  4. CN

    CNBC@CNBCPost on X ·

    Cerebras surges 15% after beating on quarterly revenue and announcing Microsoft deal https://t.co/VkpuXnCzRh

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  5. CB

    Crypto BriefingArticle ·

    Cerebras revenue jumps 55% to $211M as AI cloud demand surges Cerebras Systems' robust revenue growth signals potential market disruption, but profitability challenges and customer reliance pose significant risks. The post Cerebras revenue jumps 55% to $211M as AI cloud demand surges appeared first on Crypto Briefing .

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  6. CB

    Crypto BriefingArticle ·

    Cerebras revenue climbs 55% in Q3 2026 but lands below Wall Street estimates Cerebras' revenue growth highlights strong cloud demand, yet missing estimates may pressure future performance and investor confidence. The post Cerebras revenue climbs 55% in Q3 2026 but lands below Wall Street estimates appeared first on Crypto Briefing .

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  7. TR

    TrendSpider@TrendSpiderPost on X ·

    $CBRS RIPPING ON EARNINGS Q3 Adj EPS: $(0.67) vs $(0.14) est ❌ Q3 Sales: $210.8M vs $214.7M est ❌ Raised Q4 Sales Guidance ✅ 🟩 +15% in after-hours https://t.co/I0iJkxzGQF

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