Cerebras Systems released third-quarter earnings results that exceeded consensus expectations and guided for stronger fourth-quarter performance. The company’s core revenue reached $135.7 million, representing 70% growth compared to the prior year, though this marked a deceleration from the 103% growth rate achieved in the second quarter.
Executives announced a significant partnership with Microsoft during an analyst conference call, with CEO Andrew Feldman indicating that revenue from the relationship is expected to begin appearing in the first quarter of 2027. The deal was signed in October. Feldman attributed the opportunity partly to long lead times and elevated costs for GPU hardware, positioning Cerebras favorably against competitors. The company has previously secured partnerships with other major cloud infrastructure providers Amazon and Oracle.
For the upcoming quarter, Cerebras provided guidance of $310 million to $330 million in revenue, paired with a projected core gross margin between 47% and 49%. These projections exceeded analyst consensus expectations, which had anticipated $271 million in revenue and a 42.1% margin. Management also outlined expectations for 2027, forecasting revenue to triple year-over-year to approximately $2.85 billion, marginally below analyst surveys calling for $2.92 billion.
CerebrAs noted it is evaluating financing options to meet anticipated demand growth. The company is competing directly with Nvidia in the artificial intelligence semiconductor market. Despite the positive earnings announcement and stock price movement on Friday, Cerebras shares have declined approximately 47% since the company’s Nasdaq debut in May.
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