Cerebras Stock Declines 14% Despite Raised Full-Year Guidance

Cerebras Systems experienced a stock decline of approximately 14% in extended trading after releasing its second earnings report since its initial public offering. The company, which specializes in chips for artificial intelligence, raised its full-year revenue forecast. However, this positive outlook was overshadowed by its second-quarter financial results and a significant net loss.

What Happened

In its second quarter, Cerebras reported core revenue of $210 million, falling short of analyst expectations of $212.6 million. The company also posted a GAAP revenue of $180.1 million, excluding pass-through revenue. Cerebras recorded a net loss of $450.5 million, a sharp contrast to the profit of $309.5 million ($1.91 per share) reported in the same period the previous year. The majority of this loss, $386.6 million, is attributed to stock-compensation expenses.

Despite the quarterly loss, Cerebras increased its full-year core revenue projection to between $880 million and $890 million, an upward revision from its earlier guidance of $855 million to $865 million. The company anticipates its core gross margin will improve to between 38% and 40% in the current quarter.

Key Facts

• Cerebras stock fell approximately 14% in extended trading.
• The company's second-quarter core revenue was $210 million.
• A net loss of $450.5 million was reported for the second quarter.
• Stock-compensation costs accounted for $386.6 million of the net loss.
• Full-year core revenue guidance was raised to $880-$890 million.
• The company expects core gross margin to be between 38% and 40% in the current quarter.
• Cerebras Systems went public on the Nasdaq on May 14, 2026, at $185 per share, raising $6.4 billion.
• The stock closed at $262.06 on Wednesday, up 42% from its IPO price.
• Remaining performance obligations stand at $25.4 billion.
• Cerebras expects revenue to triple in the next fiscal year.
• The company announced a partnership with Advanced Micro Devices and that OpenAI can use its chips for its GPT 5.6-Sol model.
• Revenue from Cerebras's cloud offerings was $126 million in the June quarter.

Background

Cerebras Systems, co-founded and led by CEO Andrew Feldman, aims to compete with AI chip leaders like Nvidia. The company focuses on specialty inference chips designed for tasks requiring low latency, which it terms "fast inference." Cerebras's IPO in May aimed to capitalize on investor enthusiasm for AI semiconductor technology. The company's stock has seen fluctuations since its debut, though it remained significantly above its IPO price prior to the latest earnings report.