● Covered by 2 sources · 2 reportsMedium impact2 negative
Cerebras Stock Falls 14% After Q2 Revenue Miss, Despite Raised Full-Year Outlook
Key points
- Cerebras Q2 revenue was $180 million, below $194 million analyst estimate.
- Stock fell 14% in extended trading after the earnings report.
- Full-year core revenue outlook raised to $880-$890 million.
- AI cloud services revenue increased 281% year-over-year.
- Hardware sales decreased by 23% compared to the previous year.
Cerebras Reports Mixed Q2 Results
Cerebras Systems, a chipmaker, reported its second-quarter financial results, showing a revenue of $180 million, which fell short of the LSEG consensus estimate of $194 million. This revenue figure represents core revenue, with total revenue including "pass-through revenue" reaching $210 million.
Despite the revenue miss, the company's adjusted loss per share was 5 cents, better than the anticipated 17 cents. Following the announcement, Cerebras' stock experienced a decline of approximately 14% in extended trading.
Raised Full-Year Guidance
Cerebras raised its full-year core revenue outlook, now expecting between $880 million and $890 million, an increase from its prior range of $855 million to $865 million. For the current quarter, the company projects core revenue to be between $214 million and $216 million.
Shift in Revenue Streams
The financial results indicate a shift in Cerebras' business model, with AI cloud services revenue significantly increasing by 281% year-over-year to $125.99 million in Q2 2026, up from $33.03 million in Q2 2025. Conversely, hardware sales decreased by 23% year-over-year, falling to $54.12 million from $70.3 million in Q2 2025.
Cerebras CEO Andrew Feldman noted strong demand for AI, stating that companies are willing to pay for its specialty inference chips.
Increased Operating Expenses and Net Loss
Cerebras recorded a net loss of $450.5 million for the quarter, a significant change from a profit of $309.5 million in the same period a year prior. This loss is largely attributed to stock-compensation costs totaling $386.6 million, triggered by the company's IPO in May. Operating expenses rose to $502.79 million from $89.28 million a year ago, and the gross margin dropped to 14%.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Cerebras reported Q2 2026 earnings that missed analyst expectations, causing its shares to fall over 18%. While overall revenue increased, hardware sales decreased by 23% year-over-year, contrasting with a 281% rise in AI cloud services revenue, indicating a shift in its business model.
Cerebras Systems' stock fell 14% in extended trading after its second earnings report post-IPO, despite the company raising its full-year revenue outlook. The decline followed a Q2 revenue miss compared to analyst expectations, though loss per share was better than anticipated.