Cerebras Stock Dips 14% Following Second Earnings Report After IPO, Despite Guidance Boost

Andrew Feldman, co-founder and CEO of Cerebras Systems, addressed the market following the company’s initial public offering at the Nasdaq MarketSite in New York on May 14, 2026.

Cerebras Systems disclosed its second-quarter results following its May initial public offering, reporting revenue that fell short of estimates but raising its full-year outlook.

For the second quarter, the company generated $180 million in core revenue, compared with $194 million expected by LSEG analysts. Adjusted loss per share narrowed to 5 cents, versus an expected 17-cent loss.

The company now expects core revenue between $214 million and $216 million for the current quarter, and raised its full-year core revenue forecast to a range of $880 million to $890 million, up from the prior estimate of $855 million to $865 million.

Total revenue for the quarter, including pass-through items, reached $210 million.

Cerebras recorded a net loss of $450.5 million, compared with a profit of $309.5 million, or $1.91 per share, in the year-earlier period. The majority of the loss, $386.6 million, is tied to stock-compensation costs.

CEO Andrew Feldman said AI demand remains “through the roof,” with companies paying a premium for Cerebras’s specialty inference chips designed for low-latency performance.

Cerebras competes with Nvidia on AI tasks requiring quick responses, a category the company labels “fast inference.” Feldman indicated that core gross margins will expand to between 38% and 40% in the current quarter, reflecting premium pricing for fast inference.

“Gross margins are in a good spot and growing,” Feldman said, adding that Cerebras has increased the AI output of its systems.

Cerebras went public in May, pricing its offering at $185 and raising $6.4 billion. The stock peaked after the offering but closed at $262.06 on Wednesday, up 42% from its IPO price.

The company holds $25.4 billion in remaining performance obligations, which Feldman said signals “extraordinary future demand.” He added that as Cerebras scales, it will benefit from larger-scale manufacturing, better component pricing, and amortized overhead.

Cerebras also projected revenue to triple in the next fiscal year.

In recent developments, Cerebras announced a partnership with Advanced Micro Devices, with products expected to go into production later this year. The company also stated that OpenAI can use its chips to serve its latest model, GPT 5.6-Sol.

Cerebras’s cloud service reported $126 million in revenue during the June quarter.

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