Cerebras beats revenue expectations and lands Microsoft deal
Cerebras Systems reported quarterly revenue that exceeded Wall Street expectations and announced a new partnership with Microsoft, causing its stock to jump 12% in extended trading.
Despite posting a loss of 67 cents per share, investors focused on the revenue beat, sending shares up 12% in after-hours trading.
Strong Growth and Raised Outlook
Cerebras also reported core revenue of $230.9 million, with cloud revenue reaching $144.9 million—a staggering 272% year-over-year increase. Management raised its full-year 2026 core revenue guidance to between $940 million and $960 million, indicating sustained growth momentum.
Major Partnerships and Backlog
The announcement of a partnership with Microsoft, one of the hyperscalers that buy computing capacity in enormous volumes, drew significant attention. Cerebras also revealed a future partnership with Oracle Cloud Infrastructure beginning in 2027 and a recent commercial win with Bilt.
The figure that may matter most over the long run is remaining performance obligations. As of September 30, 2026, that number stood at $26.1 billion.
Technology and Future Outlook
Cerebras specializes in wafer-scale AI inference, building processors on entire silicon wafers rather than cutting them into smaller chips. The company's data-center capacity under contract has grown to 700 megawatts, though converting the $26.1 billion backlog into actual revenue remains a key challenge.
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