Cerebras Systems — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP total revenue reached a record $210.8 million, up 55% year-over-year.
• GAAP cloud and other services revenue hit a record $141.9 million, up 265% year-over-year.
• Core (Non-GAAP) total revenue was $230.9 million, up 70% year-over-year.
• Core cloud and other services revenue was $144.9 million, up 272% year-over-year.
• GAAP gross margin was 20%, up sequentially; Core gross margin was 41%, up both sequentially and year-over-year.
• GAAP operating margin was (106%); Core operating margin was (14%).
• GAAP net loss was $161.2 million for the quarter; Core net income was $29.8 million.
• Nine-month GAAP total revenue was $584.3 million; Core total revenue was $632.1 million.
• Nine-month GAAP net loss was $625.8 million; Core net income was $20.4 million.
• Liquidity stood at $7.8 billion in cash, cash equivalents, restricted cash, and short-term investments.
• Debt capacity was $850 million.
• Remaining performance obligations were $26.1 billion as of September 30, 2026.
• Deferred revenue increased to $234.3 million (current) and $453.3 million (non-current) from $131.0 million and $35.8 million, respectively, at the end of 2025.

Guidance and Future Outlook:

• Q4 2026 Core revenue is expected to be $310 million to $330 million.
• Q4 2026 Core gross margin is projected between 47% and 49%.
• Q4 2026 Core operating margin is projected between (1%) and 1%.
• Full Year 2026 Core revenue is expected to be $940 million to $960 million.
• Full Year 2026 Core gross margin is projected between 42% and 44%.
• Full Year 2026 Core operating margin is projected between (10%) and (8%).
• Management expects to triple revenue in 2027.
• The pipeline for high-speed AI inference increased by more than 10x in the quarter.

Business Segments and Product Lines:

• Cerebras is the first to deliver production-scale heterogeneous disaggregated inference, expected to become a default offering in major clouds.
• CS-4, the world's fastest AI accelerator, was introduced at Supernova 2026, delivering up to 30x faster inference, with full production expected soon.
• CS-5 system was previewed at Hot Chips 2026, targeted for early Summer 2027, designed to deliver up to 10,000 tokens per second per user.
• The Wafer Scale Engine 5 processor for CS-5 has completed bring-up and is in system testing, moving from tape-out to system test in less than 5 months.
• Cerebras was a day-zero launch partner for Moonshot AI's 2.8 trillion-parameter Kimi K3.1 model, which runs up to 2,000 tokens per second on Cerebras infrastructure.
• Oracle will integrate Cerebras fast inference into Oracle Cloud Infrastructure in 2027.
• Cerebras announced a cloud deal with a top three hyperscaler, with further details to be shared next year.
• Cerebras will power the Bilt Neighborhood OS platform and Bilt Concierge AI assistant, serving eight million consumers and 50,000 businesses.
• Manufacturing capacity with partners Flex and Sanmina is expected to exit 2026 with more than 10x capacity versus the beginning of the year.

Market and Competitive Landscape:

• Cerebras Cloud is now among the largest non-hyperscaler AI clouds.
• The company secured 700 gross megawatts of data center capacity for delivery by the end of 2027, increasing the pipeline toward gigawatt scale.
• New contracts were signed for capacity in Norway and Finland to expand European capacity.
• Disaggregated inference technology increases data center capacity by up to 5x the number of tokens delivered, resulting in more profit per MW for cloud owners and lower cost per token for users.
• Commercial wins included two new hyperscalers, neoclouds, and large enterprises.

Risks and Challenges:

• Forward-looking statements note risks including the ability to sustain growth, access capital, and manage net losses.
• Risks include dependence on a limited number of significant customers and potential demand reductions.
• Challenges involve the timing of data center capacity, capital deployment, and the early-stage nature of the cloud-based AI infrastructure market.
• The market is described as rapidly evolving and competitive.

Management Commentary and Tone:

• CEO Andrew Feldman stated Cerebras' technology remains the "undisputed champion of speed" and expressed confidence in tripling revenue in 2027.
• CFO Bob Komin noted the company exceeded guidance across the board for the third quarter in a row and delivered sequential improvements on all core financial metrics.
• Management highlighted winning new marquee customers and a 10x increase in the high-speed AI inference pipeline.

Other Key Points:

• Cerebras Systems is listed on NASDAQ under the ticker CBRS.
• The company completed an initial public offering, generating $6.2 billion in proceeds net of underwriting discounts.
• Proceeds from the sale of Series H redeemable convertible preferred stock were $1.0 billion.
• Proceeds from a Working Capital Loan were $1.0 billion.
• The company will host an earnings webcast and conference call on November 12, 2026, at 2 p.m. PT.
• Upcoming investor events include the TomorrowX Summit on November 17, 2026, and the Barclays Global Technology Conference on December 9, 2026.