Published • loading... • Updated
Cerebras stock plunges 14% after second earnings report following IPO
Cloud revenue nearly quadrupled to $126 million, but hardware sales fell and adjusted gross margin dropped to 40.6%, prompting analyst concern.
- Cerebras Systems shares fell roughly 14% on Thursday after fiscal Q2 2026 results missed revenue consensus by 7%, despite the company's cloud business nearly quadrupling year over year.
- Investors punished GAAP optics distorted by $377.0 million in stock-based compensation and $44.3 million in customer warrant amortization, even though core revenue more than doubled year over year.
- Quarterly hardware sales declined to $54.1 million from $70.3 million, prompting Morgan Stanley analysts to warn that "Execution remains the key debate given the scale and speed of the capacity build required to support the ramp."
- Management raised full-year 2026 core revenue guidance to $880–$890 million and disclosed $25.4 billion in remaining performance obligations, with plans to more than triple revenue in 2027.
- The broader AI hardware complex rallied Thursday, with Super Micro gaining 11% following blowout fiscal 2027 guidance and Lenovo reporting an AI server pipeline that surged to $54 billion, up 157% sequentially.
Insights by Ground AI
Podcasts & Opinions
21 Articles
21 Articles
Cerebras Plummets 13% After Earnings. But Intel & AMD Barrel Ahead with Strong Gains.
Cerebras is getting crushed after earnings while nearly every other AI chip and infrastructure name surges to fresh highs. What one company's bad day reveals about where this trade is actually headed matters more than the headline loss.
·Lakewood, United States
Read Full Article
Cerebras stock tanks after earnings. Time to worry about the AI chipmaker?
Shares of Cerebras Systems (Nasdaq: CBRS) are down more than 17% in premarket trading this morning. The fall follows the company’s second quarter earnings report, its second since a blockbuster IPO in May. While Cerebras saw its Core revenue rise 103%, it wasn’t enough to satisfy Wall Street’s high expectations. In quarter two, the AI chipmaker made $180.1 million in total revenue, about $14 million short of analysts’ predicted $194 million, acc…
·New York, United States
Read Full Article
Cerebras Systems Reports Solid Earnings. The Stock Is Plunging.
·New York, United States
Read Full Article
Coverage Details
Total News Sources21
Leaning Left3Leaning Right2Center8Last UpdatedBias Distribution62% Center
Bias Distribution
- 62% of the sources are Center
62% Center
L 23%
C 62%
15%
Factuality
To view factuality data please Upgrade to Premium
