Earnings · $CBRS
Cerebras Jumps After Raising 2026 Revenue Guidance to $940 Million-$960 Million and Reporting a Surprise Adjusted Profit
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The AI chipmaker's shares rose in early Friday trading after third-quarter results beat estimates and it disclosed new hyperscaler deals.
By Emma Cruz ·
Shares of Cerebras Systems (CBRS) rose sharply in early trading on Friday, Nov. 13, after the AI chipmaker reported third-quarter results that beat expectations and raised its full-year outlook. Reuters said the stock gained more than 14% early in the session, which would add over $3 billion to its market value if sustained [1]. TheStreet reported an 11.4% gain in premarket trading as of 8:07 a.m. ET [2].
In its own release on Nov. 12, Cerebras said third-quarter GAAP revenue was $210.8 million, up 55% from a year earlier, while core revenue, which excludes certain items, was $230.9 million, up 70% [3]. Core cloud revenue rose 272% to $144.9 million [3]. The company reported a GAAP net loss of $161.2 million but core net income of $29.8 million [3]. Reuters said analysts had expected an adjusted loss of $38.4 million, so the profit was a surprise [1].
The guidance change drew the most attention. Cerebras now expects 2026 core revenue of $940 million to $960 million, up from a prior range of $880 million to $890 million, Reuters reported, versus an average analyst estimate of $887.04 million from LSEG data [1][3]. For the fourth quarter the company guided to core revenue of $310 million to $330 million and a core gross margin of 47% to 49% [3]. Management also reiterated that it expects to "triple revenue in 2027," according to the release [3].
Business updates in the release pointed to demand from large cloud providers. Cerebras said it signed a cloud deal with a top-three hyperscaler and added two other hyperscalers as customers, and that Oracle plans to bring its inference technology to Oracle Cloud Infrastructure in 2027 [3]. Reuters reported separately that Cerebras signed a cloud deal with Microsoft, with details to be shared next year [1]. Remaining performance obligations, a measure of contracted future revenue, stood at $26.1 billion, and the company held $7.8 billion in cash and short-term investments [3].
The report also addressed a known concern. Reuters said Chief Executive Andrew Feldman attributed delays under the company's $20 billion multi-year OpenAI agreement to industry-wide shortages of land and power rather than constraints on chip manufacturing [1]. The company said it has secured 700 gross megawatts of data center capacity for delivery by the end of 2027 [3].
Why it matters: Reuters framed the results as a counterweight to worries about heavy AI spending and the uncertainty around Nvidia after its chief executive resigned on Thursday [1]. The shares closed Thursday about 47.2% below the $185 price at which they were sold in the company's May initial public offering, so the move comes from a depressed base [1]. Profitability remains thin: the GAAP operating margin was negative 106% in the quarter, even as the core operating margin was negative 14% [3].
What to watch next: whether the early gain holds through the session, how much detail Cerebras provides on the Microsoft arrangement next year, and whether the capacity it has secured turns into recognized revenue on the timeline implied by its fourth-quarter guidance [1][3].
Sources:
[1] Reuters (via Investing.com), "Cerebras shares surge as profit surprise, forecast raise ease AI spending worries", November 13, 2026. https://www.investing.com/news/stock-market-news/cerebras-shares-surge-as-profit-surprise-forecast-raise-ease-ai-spending-worries-5024960
[2] TheStreet, "Stock Market Today (Nov. 13, 2026)", November 13, 2026. https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-nov-13-2026
[3] Cerebras Systems, "Cerebras Systems Delivers Record Revenue in Third Quarter 2026, Raises Full-Year Outlook", November 12, 2026. https://www.sec.gov/Archives/edgar/data/0002021728/000162828026073366/cbrsannouncesfinancialresu.htm
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.