Key Notes
- Cerebras shares jumped 17% in November 12 extended trading after a revenue beat and Microsoft deal.
- Core revenue reached $230.9 million while GAAP revenue was $210.8 million.
- Fourth-quarter core revenue guidance of $310 million to $330 million topped analyst expectations.
Cerebras Systems (Nasdaq: CBRS) shares jumped 17% in extended trading on November 12 after the AI chipmaker beat quarterly revenue expectations and disclosed a new contract with Microsoft (Nasdaq: MSFT).
The third-quarter results topped LSEG consensus on both headline adjusted measures:
- Core revenue: $230.9 million, up 70% from a year earlier, versus $214.7 million expected.
- Adjusted earnings per share: $0.12, versus an expected loss of $0.14.
Core Growth Comes With a Wider GAAP Loss
The company’s financial statements show GAAP revenue of $210.8 million, up 55%, and a net loss of $161.2 million, compared with $22.2 million a year earlier.
Core revenue removes pass-through data-center billings and adds back customer-warrant amortization recorded as a reduction in sales. Adjusted earnings also exclude stock-based compensation. Those adjustments explain why the revenue and profit figures differ from the GAAP results.
Microsoft Revenue Expected in Early 2027
CEO Andrew Feldman told CNBC that Microsoft signed the deal in October and that he expects revenue to begin in the first quarter of 2027.
OpenAI reaffirmed its existing Cerebras partnership in October. The Microsoft contract adds another major cloud customer to the chipmaker’s push to sell high-speed AI inference.
Fourth-Quarter Forecast Points to Faster Growth
Cerebras expects fourth-quarter core revenue of $310 million to $330 million, above the $271 million LSEG estimate. The $320 million midpoint implies roughly 39% growth from the third quarter. Management forecasts a core gross margin of 47% to 49%.
The company raised its full-year core revenue outlook to $940 million to $960 million. Management also expects revenue to triple in 2027, implying about $2.85 billion against the $2.92 billion analysts expected.
Delivering that growth requires more computing capacity. Cerebras says it has contracted 700 megawatts for delivery by the end of 2027, while Feldman said the company is evaluating financing options to meet demand.
