Cerebras jumps 18% on earnings beat and Microsoft deal
Cerebras shares jumped 18% in extended trading after quarterly revenue beat estimates and the AI chipmaker announced a new deal with Microsoft.
A beat, a deal, and an 18% jump
Cerebras Systems shares jumped 18% in extended trading on Thursday after the AI chipmaker reported quarterly revenue above Wall Street estimates and announced a new deal with Microsoft. Third-quarter core revenue rose 70% to $230.9 million, from $135.7 million a year earlier, beating the $214.7 million average estimate compiled by LSEG.
Revenue on a GAAP basis reached $210.8 million, up 55% from the same quarter last year. Microsoft signed the deal in October, and revenue from the agreement is set to begin in the first quarter of 2027, CNBC reported.
Cloud revenue more than triples
Core cloud and services revenue, which reflects a $20 billion multi-year agreement to provide computing power for OpenAI, more than tripled to $144.9 million for the quarter, Reuters reported. The deal underpins remaining performance obligations of $26.1 billion as of September 30.
Cerebras guided fourth-quarter revenue to between $310 million and $330 million, above the $271 million analysts expected. It also raised its full-year 2026 core revenue outlook to between $940 million and $960 million, from $880 million to $890 million.
- Third-quarter core revenue$230.9 million
- Year over yearUp 70%
- LSEG estimate$214.7 million
- Fourth-quarter guidance$310 million to $330 million
- 2027 revenueAbout $2.85 billion
Still losing money
The quarter was not all good news. The net loss widened to 67 cents per share, from 41 cents in the same quarter last year, as the company spent heavily to expand chip volumes and capture demand for AI computing capacity.
In July, Cerebras announced a partnership with AMD to combine AMD's Helios systems with its wafer-scale engine for inference. The company also announced a partnership with Oracle Cloud Infrastructure that takes effect in 2027, and disclosed a commercial win with Bilt in November 2026.
What to watch next
Chief executive Andrew Feldman said the company expects revenue to triple in 2027, to about $2.85 billion. The Microsoft deal gives Cerebras a third hyperscaler customer alongside Amazon and Oracle, at a moment when Nvidia's leadership shake-up has put the AI chip market in flux.
The test now is delivery. The Microsoft revenue starts in the first quarter of 2027, and the raised outlook assumes the company can keep expanding chip volumes fast enough to meet demand that, for now, keeps outrunning supply.
