Cerebras raises full-year outlook to $890M, stock drops 14%

Cerebras Systems raised its full-year revenue forecast on August 12, 2026, but its stock fell about 14% in extended trading after the chipmaker reported second-quarter results. The company now expects core revenue of $880 million to $890 million for the year, up from a prior range of $855 million to $865 million.

For the current quarter, Cerebras projects core revenue between $214 million and $216 million, above the $212.6 million analysts expected, according to LSEG. Second-quarter core revenue was $210 million, while GAAP revenue was $180.1 million, excluding pass-through revenue. The company posted a net loss of $450.5 million, compared with a profit of $309.5 million, or $1.91 per share, a year earlier, largely due to $386.6 million in stock-compensation costs.

Cerebras is positioning itself as a challenger to Nvidia for AI tasks requiring low latency, which it calls "fast inference." CEO Andrew Feldman said AI demand is "through the roof" and that companies are paying a premium for its specialty inference chips. The company expects core gross margin to expand to between 38% and 40% this quarter, addressing investor concerns.

The company went public on the Nasdaq in May, pricing its offering at $185 and raising $6.4 billion. The stock closed at $262.06 on Wednesday, up 42% from its IPO, but has fallen since peaking in May. Cerebras reported $25.4 billion in remaining performance obligations, which it called a sign of "extraordinary future demand," and said it expects revenue to triple in the next fiscal year.

In recent weeks, Cerebras announced a partnership with AMD, with products going into production later this year, and said OpenAI can use its chips to serve its latest model, GPT 5.6-Sol. Its cloud business reported $126 million in revenue during the June quarter.