File photo: Cerebras’ building in Sunnyvale, California, July 7, 2024. Photo: Coolcaesar / Wikimedia Commons / CC BY 4.0. Cropped and resized; contained on a neutral background.
Cerebras Systems raised its full-year revenue outlook Thursday after reporting sharply higher cloud sales and announcing a new deal with one of the world’s three largest cloud providers. Its shares jumped 17.6% in after-hours trading.
The AI infrastructure company projected 2026 core revenue of $940 million to $960 million in its third-quarter results. For the fourth quarter, it expects core revenue of $310 million to $330 million and a core operating margin between a 1% loss and a 1% profit.
Cerebras shares traded at $114.9058, up $17.1558, or 17.55%, in Nasdaq’s after-hours quote stamped 7:37 p.m. Eastern on November 12. The stock had closed regular trading at $97.75, down 3.29%. The extended-hours price is a timed snapshot, not a guaranteed price for the next session.
Cloud growth lifts sales, but GAAP loss widens
Third-quarter revenue under generally accepted accounting principles rose 55% to $210.8 million. Core revenue, the company’s adjusted measure, increased 70% to $230.9 million.
The company reported a GAAP net loss of $161.2 million, or 67 cents per share, compared with a $22.2 million loss a year earlier. Its GAAP operating loss widened to $224.1 million from $26.5 million.
GAAP cloud and other services revenue grew 265% to $141.9 million. Core cloud and other services revenue rose 272% to $144.9 million. By contrast, GAAP hardware revenue fell to $68.9 million from $96.8 million a year earlier.
The distinction between core and GAAP figures matters. Cerebras’ core measures exclude items including non-cash customer-warrant amortization, stock-based compensation and data-center pass-through revenue and costs. They supplement, rather than replace, the GAAP results.
New cloud customer and more capacity
Cerebras said it had signed an important cloud agreement with a top-three hyperscaler, with more details to be shared next year. The earnings release did not name that customer.
The company also said Oracle plans to make its fast-inference technology available through Oracle Cloud Infrastructure in 2027. Separately, Cerebras said it had secured 700 gross megawatts of data-center capacity for delivery by the end of 2027, including additional capacity in Norway and Finland.
Remaining performance obligations totaled $26.1 billion as of September 30. That measure represents contracted future business, not revenue already earned in the quarter.
Chief Executive Andrew Feldman said Cerebras expects revenue to triple in 2027. That is a company forecast, not a completed result. The company said its outlook is subject to risks including customer concentration, capital needs, data-center availability and its ability to deliver new technology.
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