Cerebras reported third-quarter core revenue above analyst expectations and announced a new deal with Microsoft. Its shares rose in extended trading, though they have slumped about 47% since their May debut.
Cerebras Systems jumped 18% in extended trading on Thursday after the AI chipmaker beat revenue expectations and touted a new deal with Microsoft. The company also issued guidance that came in above analyst estimates for the fourth quarter.
Core revenue tops estimates
Core revenue reached $230.9 million, against $214.7 million expected by analysts polled by LSEG. Loss per share was 67 cents, and CNBC said it was not immediately clear how that compared with the loss of 14 cents analysts expected.
The company's core revenue grew 70% from $135.7 million, compared with 103% growth in the second quarter, according to the company's statement.
Microsoft deal joins Amazon and Oracle agreements
Next came the Microsoft agreement. Executives planned to announce the new relationship on an analyst call, and CEO Andrew Feldman said Microsoft signed the deal in October. He added that Cerebras expects revenue from it to begin showing up in Q1 2027.
Cerebras has also landed deals with Amazon and Oracle. Feldman said the company is evaluating its financing options to meet ramping demand. He also told CNBC that long lead times and higher costs for GPUs create an opportunity for Cerebras, particularly in hardware sales.
Fourth-quarter outlook sits above consensus
For the fourth quarter, Cerebras expects revenue of $310 million to $330 million, compared with the $271 million analysts expected. It also forecast a core gross margin of 47% to 49%, against the 42.1% margin analysts projected.
Looking further out, Cerebras said it expects revenue to triple in 2027. That implies about $2.85 billion, while analysts surveyed by LSEG were looking for $2.92 billion.
Despite the jump, Cerebras shares have slumped by about 47% since the company debuted on Nasdaq in May.
Source: CNBC
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