Cerebras Systems Inc.
CBRS · Nasdaq
CBRS · Nasdaq
Consensus is -$0.13 EPS for Sep 2026 across 3 estimates, ranging -$0.21 to -$0.03.
Cerebras’ June quarter was a cloud-inference ramp and capacity-investment quarter, with the reported EPS result materially ahead of expectations but GAAP profitability moving sharply in the opposite direction. Reported EPS of -$0.04 beat the -$0.21 consensus estimate, while GAAP revenue rose 74% year over year to $180.1 million. Revenue was down from $193.4 million in Q1, reflecting the timing and mix of deployments, but core revenue reached $209.9 million, more than double the year-ago level. Cloud and other services were the main driver at $126.0 million, up 281% year over year, while hardware revenue fell 23% to $54.1 million.
The GAAP loss of $450.5 million, or $2.98 per diluted share, compared with net income of $309.5 million a year ago and a $14.0 million loss in Q1. The year-ago profit included a non-recurring $363.3 million gain, while this quarter included $377.0 million of stock-based compensation, largely triggered by the IPO. On the company’s core measures, gross margin rose to 41% from 31%, operating margin improved to -16% from -42%, and core net loss narrowed to $6.9 million. Management’s focus was on converting a $25.4 billion backlog into delivery capacity, supported by $8.6 billion of liquidity and more than 600 MW of contracted data-center capacity.
Cloud and other services became the center of gravity for the business. GAAP services revenue reached $126.0 million, up 281% from $33.0 million a year ago, and represented 70% of total revenue versus 32% in Q2 2025. The increase reflected higher customer consumption, the ramp of dedicated cloud capacity and revenue from existing customer arrangements. Hardware revenue declined to $54.1 million from $70.3 million, partly because $28.0 million of customer-warrant amortization reduced reported hardware revenue.
The quarter showed a meaningful improvement in the underlying economics of the business, even as GAAP results were overwhelmed by IPO-related accounting. Core gross profit was $85.2 million, or a 41% margin, up from $32.3 million and a 31% margin a year ago. Core operating loss narrowed to $33.6 million from $43.9 million, with core operating margin improving by approximately 2,600 basis points to -16%.
OpenAI remained the principal demand and financing anchor. Under the December 2025 master relationship agreement, OpenAI committed to purchase 750 MW of inference capacity and related services, with an option for another 1.25 GW. Cerebras recognized $56.8 million of Q2 revenue under the arrangement, net of $2.5 million of customer-warrant amortization.
Cerebras is using its post-IPO balance sheet to build the physical footprint needed for the cloud ramp. Capacity live or under contract for delivery by the end of 2027 exceeded 600 MW, while the company said its pipeline had expanded into the gigawatt range. Manufacturing lines were added at Flex, Sanmina and Rocket EMS, with manufacturing capacity expected to increase more than 10x during 2026.
The IPO materially changed Cerebras’ financial capacity. The company raised approximately $6.2 billion net in May and ended June with $7.4 billion of cash, cash equivalents and restricted cash, plus $1.2 billion of short-term investments. It also had an undrawn revolving credit facility of up to $850 million, intended in part to support data-center acquisitions and commitments.
The filing highlights that the growth plan is dependent on a small number of customers, large data-center commitments and rapid organizational scaling. Cerebras continued to report material weaknesses in internal control over financial reporting as of June 30, involving IT controls, segregation of duties and finance personnel, although management said remediation was underway.
