Cerebras drops 14% despite earnings beat, raised guidance
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- Cerebras stock tumbled about 14% in extended trading after Q2 core revenue of $180 million missed the $194 million LSEG consensus, though its adjusted loss per share of 5 cents beat the 17-cent estimate.
- Cerebras raised full-year core revenue guidance to $880–$890 million from a prior $855–$865 million range and projected Q3 core revenue of $214–$216 million.
- Cerebras posted a $450.5 million net loss — driven primarily by $386.6 million in stock-compensation costs — reversing a $309.5 million profit a year earlier.
- CEO Andrew Feldman told investors AI demand is "through the roof" and said Cerebras will expand core gross margins to 38–40% this quarter as its "fast inference" chips command premium pricing over standard GPUs.
- Cerebras disclosed $25.4 billion in remaining performance obligations and expects revenue to roughly triple next fiscal year, citing manufacturing scale and better component pricing.
- Cerebras went public on the Nasdaq in May at $185, raising $6.4 billion; shares closed Wednesday at $262.06 — up 42% from the IPO but well below their May peak.
Why it matters: Cerebras beat the bottom line and lifted its full-year outlook, yet a $14 million revenue shortfall and a $450.5 million net loss (driven by stock-compensation charges) were enough to send shares down 14% after hours — suggesting public-market investors are still weighing the order-book strength ($25.4 billion in remaining performance obligations) and gross-margin trajectory against near-term headline misses.
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