Overview
Cerebras Systems Inc (NASDAQ:CBRS) saw its shares surge more than 16% in after‑hours trading on Thursday after the AI‑infrastructure firm raised its full‑year revenue guidance and delivered third‑quarter results that beat expectations.
Financial Results
The company posted third‑quarter revenue of $210.8 million, representing a 55% year‑over‑year increase. Adjusted earnings per share were a loss of $0.67. Excluding data‑center pass‑through revenues and other items, core revenue reached $230.9 million, up 70% YoY. Core cloud and other services revenue climbed to $144.9 million, a 272% YoY rise.
Guidance
For the fourth quarter, Cerebras issued revenue guidance of $310 million to $330 million, with a midpoint of $320 million, substantially above the analyst consensus of $274.9 million. The full‑year 2026 revenue outlook was raised to a range of $940 million to $960 million, midpoint $950 million, well ahead of the consensus estimate of $887.5 million.
New Contracts and Customer Wins
Cerebras announced commercial wins with two new hyperscalers, one of which is Oracle, which will integrate Cerebras’ inference technology into Oracle Cloud Infrastructure in 2027. The company also disclosed a cloud deal with a top‑three hyperscaler, with further details to be shared next year.
Operational Metrics
The firm now has 700 megawatts of data‑center capacity under contract for delivery by the end of 2027. Core gross margin improved to 41%, showing sequential and year‑over‑year improvement.
Executive Commentary
Chief Financial Officer Bob Komin said the company “exceeded our guidance across the board for the third quarter in a row and delivered sequential improvements on all core financial metrics,” adding that the pipeline for high‑speed AI inference increased by more than 10× in the quarter. Chief Executive Officer Andrew Feldman projected that revenue would triple in 2027 as Cerebras expands customer access through direct system sales, Cerebras Cloud, and third‑party cloud providers.