CBRS Stock Tumbles 9% After-Hours Following Mixed First-Quarter Print and Margin Warning

• First-quarter revenue increase of 94% year-over-year to $193.4 million. 
• The company forecast a significant near-term drop in its core gross margin to between 36% and 38% for the second quarter. 
• Cerebras expects 2026 revenue to come in between $855 to 865 million, beating expectations of $828 million.

Cerebras Systems Inc. (CBRS) shares fell more than 9% in after-hours trading on Tuesday after the newly public AI chipmaker delivered a mixed first-quarter report, with strong revenue growth overshadowed by an earnings miss and margin pressure concerns.

The earnings release marks the company’s first financial report since its highly publicized initial public offering in May 2026, billed as the largest semiconductor IPO in history and Nvidia’s rival.

For the three months ended March 2026, Cerebras posted GAAP revenue of $193.4 million, beating analyst estimates of $180.8 million, as per data from Koyfin. Hardware sales drove the majority of the top line at $110.6 million, while cloud and other services generated $82.8 million.

However, the chipmaker's bottom line failed to match consensus expectations. Cerebras reported a non-GAAP adjusted net loss of $0.22 per share, wider than the $0.16 per-share loss that analysts had projected. The company’s quarterly GAAP net loss landed at $14.0 million, though its non-GAAP core net loss narrowed to $2.5 million.

"This was an outstanding start to 2026 for Cerebras," Chief Executive Officer Andrew Feldman said in a statement. He emphasized that AI infrastructure demands have evolved past novelties into high-productivity enterprise tools, asserting that the company's proprietary wafer-scale technology delivers the fastest computing processing speeds currently available.

Cerebras closed the initial quarter with an accumulation of $3.3 billion in total liquid capital, which includes cash, equivalents, restricted cash, and short-term investments.

CBRS Q2 And Full-Year 2026 Outlook

For the second quarter, Cerebras projects core non-GAAP revenue of approximately $194.0 million, above Koyfin's $177.7 million estimate. 

However, CBRS expects Q2 gross margins to land between 36% and 38%, marking a notable decline from the 47% core gross margin recorded in the first quarter.

For the full fiscal year 2026, the company anticipates revenue to range between $855 million and $ 865 million, representing a 69% year-over-year growth rate at the midpoint and well above analyst expectations of $828 million.

CBRS Stock: Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘extremely high’ message volumes. Retail chatter on the stock has gained 80% over the past week and about 280% over the past month. 

One user highlighted strong demand for its products. 

https://stocktwits.com/wallstreet63/message/657246798

CBRS stock has jumped 22.5% year-to-date. 

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