Observed Signal · Jun 24, 2026 · Earnings Report · Source: techcrunch · Impact: 4/5 · Sentiment: Neutral
Cerebras Shares Plunge After Q1 Earnings, Margin Guidance Cut
Cerebras Systems shares fell about 20% after its first earnings report since going public, despite beating expectations for the quarter. The AI chipmaker reported $193 million in revenue (up 94% YoY) and a narrowed net loss of $14 million, but guided to a lower full-year gross margin of 38%–41% versus the 47% reported in Q1. CEO Andrew Feldman told CNBC investors misunderstood the margin outlook, explaining the company will temporarily rent back systems from a large customer to make capacity available sooner, a move that will depress margins this year.
Quarterly earnings and forward margin guidance from an AI infrastructure vendor affect investor sentiment and signal near-term capacity and margin dynamics in the AI hardware supply chain, which can influence enterprise AI deployment economics.
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Key Takeaways & Evidence Grounding
- Cerebras Systems reported quarterly revenue of $193 million, up 94% year-over-year.
- Net loss for the quarter narrowed to $14 million from $23.9 million a year earlier.
- The company guided full-year gross margin of 38%–41%, down from the 47% reported in Q1.
- Shares of Cerebras Systems dropped almost 20% the day after the earnings report.
- CEO Andrew Feldman said Cerebras will temporarily rent back systems from a large customer, which will reduce margins this year.
Connected Companies & Entities
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“Cerebras CEO Andrew Feldman told CNBC that investors had misunderstood the company’s margin guidance, noting that Cerebras will need to rent...”
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Cerebras shares fall 14% after Q2 earnings
Cerebras Systems shares dropped about 14% in after-hours trading after the company reported second-quarter results following its May IPO. The chipmaker reported core revenue of $180 million (below LSEG consensus of $194 million) and an adjusted loss per share of $0.05 versus $0.17 expected, while total revenue was $210 million including pass-through items. Cerebras raised full-year core revenue guidance to $880–$890 million and said it expects core revenue of $214–$216 million this quarter. The company recorded a net loss of $450.5 million, driven largely by $386.6 million of stock-compensation costs. CEO Andrew Feldman said AI demand is "through the roof," and the company cited partnerships with AMD and usage of its chips by OpenAI for GPT 5.6 Sol.
Cerebras Falls After Earnings, Forecasts Shrinking Margin
Cerebras reported its first quarterly results since its May 2026 IPO, posting $193.4 million in revenue (up 92% year‑over‑year) and a loss per share of $0.22. The company narrowed its net loss to $14 million from $23.9 million a year earlier, but shares fell about 10% in after‑hours trading and are down roughly 28% since the IPO. Management forecast a contraction in core gross margin to 36–38% in Q2 (from 46.5% in Q1) and provided forward revenue guidance — core revenue of $914 million (88% growth) and full‑year core revenue of $855.5–$865 million (≈69% growth at the midpoint). Cerebras also noted expansion of customer deployments (chips in Amazon Web Services data centers) and a previously announced multi‑billion dollar supply relationship with OpenAI.
Cerebras stock hits post-IPO low amid Nvidia pressure
Cerebras Systems' stock dropped nearly 20% this week to $166.43, its lowest since the May IPO, after a report that Nvidia would power OpenAI's "Ultrafast" mode for GPT-6.1 Sol, taking a key inference workload away from Cerebras. The stock is down more than 50% from its opening price. Insider selling, including CEO Andrew Feldman and CTO Sean Lie selling over $240 million in shares, exacerbated the decline as lockup restrictions expired. OpenAI CEO Sam Altman responded to speculation, calling Cerebras a "close partner," which helped stock recover almost 3% in after-hours trading. Cerebras' market cap has fallen from $95 billion at IPO to about $39 billion.
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