Cerebras Systems, a prominent AI chipmaker, witnessed its stock price surge by 17% in extended trading following an impressive earnings report on Thursday. The company not only surpassed third-quarter revenue expectations and issued robust guidance but also announced a significant new partnership with tech giant Microsoft.
Andrew Feldman, co-founder and CEO of Cerebras Systems, speaks at the TechCrunch Disrupt conference in San Francisco on Oct. 13, 2026.
David Paul Morris | Bloomberg | Getty Images
The company's financial performance outshone LSEG consensus estimates, reporting an adjusted earnings per share of 12 cents against an expected loss of 14 cents. Core revenue reached $230.9 million, comfortably exceeding the $214.7 million forecast. This represents a substantial 70% growth from the previous year's $135.7 million.
Cerebras CEO Andrew Feldman highlighted the current market opportunity, telling CNBC, "I think there is opportunity created by, particularly on the hardware side, the sale of hardware, where long lead times in GPUs and more expense creates opportunity for us," referring to graphics processing units. This positions Cerebras as a potential challenger to market leader Nvidia.
A key driver of optimism is the newly inked deal with Microsoft, one of the world's leading cloud providers. Feldman confirmed that Microsoft signed the agreement in October, with revenue expected to materialize in Q1 2027. Cerebras has also secured partnerships with other major cloud providers, including Amazon and Oracle, indicating a growing foothold in the hyperscaler market.
Despite the recent surge, Cerebras shares have faced a challenging period since its May IPO, having lost approximately 47% of their value. However, the strong performance and strategic partnerships suggest a potential turnaround. The company is actively exploring financing options to support the escalating demand for its AI chips.
Looking ahead to the fourth quarter, Cerebras anticipates a core gross margin of 47% to 49% and revenue between $310 million and $330 million, significantly higher than analysts' expectations of a 42.1% margin and $271 million in revenue. Furthermore, the company projects revenue to triple in 2027, implying around $2.85 billion, slightly below LSEG's $2.92 billion forecast but still indicating aggressive growth.
