Cerebras Shares Plunge on Disappointing Margin Forecast After First Earnings Since IPO
Cerebras Systems, an AI chipmaker that went public on the Nasdaq in May 2026, saw its stock drop over 14% after reporting its first quarterly earnings. While Q1 revenue hit $193.4 million (up 92% year-over-year) and net loss narrowed to $14 million, the company forecast full-year adjusted gross margins of 38%-41%—far below rivals like Nvidia (mid-70%) and AMD (mid-50%). The margin pressure stemmed from manufacturing challenges and a leaseback arrangement. Despite a $20 billion deal with OpenAI and a partnership with Amazon Web Services, investor sentiment soured.
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Cerebras stock plunges nearly 20% after earnings as CEO says margin outlook was misunderstood
Cerebras Systems shares dropped nearly 20% on Wednesday, hitting a new low near its IPO price, despite reporting better-than-expected first-quarter earnings. The AI chipmaker reported revenue of $193 million, up 94% year-over-year, and a narrowed net loss of $14 million. However, investors reacted negatively to the company's full-year gross margin guidance of 38% to 41%, a significant decline from the 47% reported in Q1. CEO Andrew Feldman told CNBC that the margin outlook was misunderstood. He explained that Cerebras would temporarily rent back some equipment from one of its largest customers to make more capacity available sooner while building out its own data center capacity, which will cut into profit margins this year. The stock selloff reflected investor concern over the margin compression.
Yahoo FinanceCerebras CEO Says Margin Forecast 'Misunderstood' as Stock Plummets After First Earnings Report
AI chipmaker Cerebras Systems saw its stock drop 17% after releasing its first earnings report as a public company, which included a forecast for narrowing core gross margins from 47% in Q1 to 38-41% for the full year 2026. CEO Andrew Feldman stated on CNBC that investors 'misunderstood' the guidance, emphasizing the company is beating its IPO plan. He explained that Cerebras will need to rent back equipment from a major client, impacting margins. Additionally, a staggered lock-up expiration allows approximately 28 million Class A shares held by directors, officers, and non-employee shareholders to become tradable this week. Feldman noted Cerebras does not face the same supply chain constraints as rivals like Nvidia regarding high-bandwidth memory and advanced manufacturing, but it is challenged by the slow pace of data center development. Analysts at Mizuho and Wedbush raised their estimates following the earnings call.
US Top News and AnalysisCerebras Systems Stock Crashes After Q1 Earnings Miss and Weak Margin Guidance
Cerebras Systems (NASDAQ: CBRS) stock crashed 16.2% on June 24, 2026, following its first earnings report as a public company. The AI chip startup reported a Q1 2027 loss of $0.22 per share, worse than the $0.16 loss analysts expected, despite revenue of $193.4 million beating estimates of $180.8 million. Revenue grew 92% year-over-year, and the company highlighted a $20 billion deal with OpenAI and a record $6.4 billion IPO. However, investors were spooked by guidance that core gross margins would drop from 47% in Q1 to 36%-38% in Q2 and average 38%-41% for the year, suggesting losses may grow. The stock is now down 45% from its IPO opening price, illustrating risks of investing in hot IPOs.
Yahoo FinanceCerebras Systems Stock Crashes After First Earnings Report Misses Estimates and Margin Outlook Disappoints
Cerebras Systems (NASDAQ: CBRS), an AI chip startup that recently went public via the largest semiconductor IPO of all time, saw its stock crash over 16% on June 24, 2026, following its first earnings report as a public company. The company reported a Q1 fiscal 2027 loss of $0.22 per share, worse than analyst forecasts of a $0.16 loss, although revenue beat expectations at $193.4 million (up 92% year-over-year). While the company highlighted a $20 billion deal with OpenAI to supply AI chips over several years and $6.4 billion raised in its IPO, investor sentiment soured due to a disappointing margin outlook. Cerebras noted its core gross margin of 47% in Q1 is expected to drop to 36%-38% in Q2 and average 38%-41% for the full year, signaling potential earnings deterioration. The stock is now down 45% from its IPO opening price.
Yahoo FinanceCerebras Systems beats Q1 revenue estimates, shares fall on margin concerns
Cerebras Systems (NASDAQ: CBRS) reported first-quarter GAAP revenue of $193.4 million and core revenue of $191.3 million, beating Wall Street expectations of $181 million. Core revenue rose 92% year-over-year. The company posted a narrower non-GAAP net loss of $0.04 per share versus the expected $0.16 loss. Despite the beat and a raised full-year revenue forecast of $855–865 million (above consensus of $828 million), shares fell 14% to around $194 after the company forecast a sharp decline in gross margins to 36-38% in Q2, down from 47% in Q1. The margin compression is tied to revenue ramp from a multi-year, $20 billion+ inference capacity deal with OpenAI and a new partnership with Amazon Web Services. CEO Andrew Feldman highlighted growing demand for faster AI infrastructure. Wedbush analysts maintained an Outperform rating and raised the price target to $280, noting hardware sales exceeded expectations and margin decline appeared less severe than previously modeled. Potential catalysts include the WSE-4 processor and additional data center capacity.
Yahoo FinanceCerebras Q1 2026 Earnings: Stock Falls on Margin Warning
Cerebras Systems reported first-quarter 2026 revenue of $193.4 million, up 94% year-over-year, but its stock fell 11% in after-hours trading after warning of declining profit margins. The company's core gross margin reached 46.5% but is projected to fall to 36%-38% in the current quarter and 38%-41% for the full year. CFO Bob Komin attributed the compression to a data center leaseback arrangement with an existing client that will depress cloud services margins by 10-15 percentage points through 2026. Net loss narrowed to $14 million from $23.9 million a year earlier. Cerebras also disclosed a multi-year OpenAI agreement worth over $20 billion and began an AWS partnership. The company's full-year gross margin outlook of 38%-41% lags behind competitors Nvidia (mid-70s) and AMD (mid-50s). The stock, which went public in May at $185 per share, closed regular trading at $226.72.
Yahoo FinanceCerebras shares drop 14% on disappointing full-year margin forecast
Cerebras shares fell about 14% in pre-market trading on Wednesday after the chip designer issued a full-year adjusted gross margin forecast of 38% to 41% for 2026, well below its first-quarter margin of 47%. The disappointing outlook, despite beating analyst estimates of 29.58%, triggered a potential loss of over $6 billion in market value, bringing the stock to its lowest since its IPO. The forecast lags behind rivals like Nvidia (mid-70% range) and AMD (mid-50%). Analysts cited pressure from manufacturing larger chips and renting back systems to meet demand. However, Morgan Stanley raised its price target to $273, and TD Cowen highlighted key deals with Amazon and OpenAI, including OpenAI's $20 billion multi-year deal and ChatGPT running on Cerebras chips. CEO Andrew Feldman also confirmed Amazon Web Services will begin using Cerebras chips within the next year.
Yahoo FinanceCerebras Shares Fall 14% After Disappointing Full-Year Margin Forecast
Cerebras shares dropped approximately 14% to $195.75 on June 24, 2026, following the chip designer's first earnings report since its IPO, which forecast adjusted gross margins of 38% to 41% for 2026, significantly below the 47% reported for Q1. The decline wiped out over $6 billion in market value. Despite the margin disappointment, analysts remained positive on the company's long-term prospects due to key deals with OpenAI, including running GPT 5.4, and an upcoming partnership with Amazon Web Services. CEO Andrew Feldman highlighted that demand exceeds supply with no major bottlenecks. The stock remains 37% below its IPO peak amid cooling AI enthusiasm, but brokerages like Wedbush and Morgan Stanley raised price targets, citing potential upside as the company scales data center capacity.
Yahoo FinanceCerebras Reports 92% Revenue Growth in First Earnings Since IPO
Cerebras Systems, an AI chipmaker that went public on the Nasdaq in May 2026, reported its first quarterly earnings as a public company. Revenue reached $193.4 million, a 92% year-over-year increase, while net loss narrowed to $14 million from $23.9 million. Despite a strong IPO debut with shares opening at $350, the stock has since dropped 28% to $226.72, and fell 5% in extended trading after the earnings release. The company raised nearly $6 billion in its IPO, the largest for a U.S. tech firm since Uber in 2019. Cerebras is challenging Nvidia in the AI chip market and announced a deal worth over $20 billion to supply OpenAI with computing power. It also secured a partnership to place its chips inside Amazon Web Services data centers. Analysts highlight Cerebras' performance advantage due to its large SRAM memory capacity compared to competitors like Google and Groq.
US Top News and AnalysisCerebras shares sink on earnings debut, with margins below AI chip rivals
Cerebras Systems shares dropped over 14% in premarket trading after its first public earnings report forecast full-year adjusted gross margins of 38% to 41%, down from 47% in Q1. Despite beating revenue estimates with $193.4 million in Q1, its margins significantly trail competitors like Nvidia (mid-70%) and AMD (mid-50%). The chip designer, which raised $5.55 billion in its IPO, is focused on AI inference and has a $20 billion deal with OpenAI. CFO Bob Komin attributed margin pressure to the difficulty of manufacturing large chips and the temporary cost of renting back systems from a client to meet demand. Cerebras aims for long-term gross margins of 60% and is in early discussions for data centers in Israel, UAE, Australia, Singapore, India, and Indonesia.
Yahoo FinanceCerebras shares sink on earnings debut, with margins below AI chip rivals
Cerebras Systems shares fell over 14% in premarket trading after its first earnings report as a public company disappointed investors. The AI chip designer forecast full-year adjusted gross margins of 38% to 41%, down from 47% in Q1 and far below rivals like Nvidia (mid-70%) and AMD (mid-50%). The company, which raised $5.55 billion in its IPO last month, reported Q1 revenue of $193.4 million, nearly double the prior year, and a narrower adjusted net loss of $2.5 million. However, the margin outlook and the disclosure that Cerebras is temporarily renting back its own systems from a client to meet demand weighed on sentiment. CEO Andrew Feldman noted early discussions for data centers in Israel, UAE, Australia, Singapore, India, and Indonesia, while CFO Bob Komin reiterated a long-term gross margin target of 60%.
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