Cerebras stock drops after earnings despite higher 2026 outlook

Cerebras stock drops after earnings reflected investors’ response to a reported revenue miss and lower sequential gross margin, even as the AI chipmaker lifted its full-year outlook. Shares fell about 14% to 16% in extended trading on Aug. 12 after closing the regular session up 11.6%, according to CNBC and Reuters.

For the quarter ended June 30, Cerebras reported $180.1 million in GAAP revenue, up 74% from a year earlier but below the $194.23 million LSEG consensus cited by Reuters. Its adjusted loss was 5 cents per share, narrower than the 17-cent loss expected by analysts, CNBC reported.

The company’s headline growth figure uses a separate, non-GAAP measure. Cerebras reported $209.9 million in “core” revenue, up 103% year over year, in its quarterly results release. Core results adjust for customer-warrant amortization, stock-based compensation, data-center pass-through revenue and costs, and certain other items. They are supplemental measures rather than a replacement for reported GAAP results.

Why did Cerebras stock drop after earnings?

Reuters characterized the selloff as a sign that investors remain focused on whether Cerebras can scale profitably, particularly after a revenue shortfall. The company’s adjusted gross margin was 40.6% in the second quarter, down from 46.5% in the prior quarter, Reuters reported. Cerebras’ GAAP gross margin was 14%.

Revenue trends also varied by business line. Cloud and other-services revenue reached $126 million, up 281% from a year earlier, according to the company. Reuters reported that hardware revenue declined to $54.1 million from $70.3 million a year earlier. Cerebras posted a GAAP net loss of $450.5 million, CNBC reported, with stock-based compensation accounting for most of the loss.

Guidance rose, but it remains a forecast

Cerebras increased its 2026 core-revenue forecast to $880 million to $890 million, from a prior range of $855 million to $865 million. It also raised projected full-year core gross margin to 41% to 43%, from 38% to 41%. For the third quarter, the company projected core revenue of $214 million to $216 million and core gross margin of 38% to 40%.

The company reported $25.4 billion in remaining performance obligations as of June 30 and said it plans to more than triple revenue in 2027. Those plans, along with expected manufacturing and data-center-capacity expansion, are forward-looking company statements rather than completed results.

This was Cerebras’ second quarterly report since its May initial public offering. Reuters reported that the shares had gained more than 41% from their IPO price before the after-hours decline, leaving the newly public chipmaker under pressure to convert rapid growth and contracted demand into sustained margins.

This story draws on original reporting from SiliconANGLE.