Key Takeaways:
- Q1 revenue hit $193.4M, beating the $181.4M consensus estimate.
- Full-year guidance of $855M-$865M topped analyst expectations of $824.8M.
- Q2 revenue forecast of ~$194M also exceeded the $173.3M consensus.
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Cerebras beats Q1 estimates with $193.4M revenue, raises full-year outlook
Cerebras Systems reported Q1 revenue of $193.4M, beating estimates by $12M, as the AI chipmaker raised its full-year outlook.
"This quarter demonstrates accelerating demand for our AI infrastructure as enterprises move beyond GPU-only architectures," Chief Executive Officer Andrew Feldman said.
Hardware revenue reached $110.6M while cloud services contributed $82.8M. The company forecast Q2 revenue of approximately $194M, above the $173.3M analyst estimate. For the full year, Cerebras expects revenue of $855M to $865M, compared with the $824.8M consensus.
The results come as CBRS shares have fallen about 30% year to date, weighed down by valuation concerns. The stock trades at roughly 91 times sales, far above Nvidia's 23 times multiple, even as the company remains unprofitable. Analysts project an adjusted per-share loss of 14 cents to 16 cents for the quarter.
Cerebras went public in May at $185 per share, briefly surging above $380 before settling into a volatile trading pattern. The stock closed Monday at $224.43, down from its post-IPO peak but still above the offer price.
The company's $20 billion multi-year cloud services agreement with OpenAI underpins much of its growth narrative. OpenAI uses Cerebras infrastructure to power Codex-Spark, a specialized coding model. Cerebras ended 2025 with a $24.6 billion backlog, dominated by the OpenAI commitment, and expects to convert $3.7 billion of that into recognized revenue through 2027.
A near-term risk arrives Thursday when a lock-up restriction expires, releasing approximately 13% of IPO shares for sale by early backers and insiders. The increased float could pressure the stock, which has already lost roughly a third of its value since the start of the year.
Wall Street remains bullish despite the valuation gap. Eleven analysts cover CBRS with a consensus Buy rating and an average price target of $294, implying about 31% upside from Monday's close. Firms including Wedbush ($270), UBS ($300) and Morgan Stanley ($250) all recommend buying.
The guidance raise signals management expects AI infrastructure demand to sustain its momentum. Investors will watch the Q2 earnings call for updates on customer diversification beyond OpenAI and progress toward profitability.
This article is for informational purposes only and does not constitute investment advice.
[1] Cerebras Systems first fiscal quarter revenue $193.4 million, analysts expected $181.4 million. First fiscal quarter hardware revenue $110.6 million, cloud revenue $82.8 million. Expected full-year revenue $855-$865 million, analysts expected $824.8 million. Expected second fiscal quarter revenue approximately $194 million, analysts expected $173.3 million.[2] Cerebras stock: options pricing suggests Q1 earnings won't salvage it[3] Cerebras (CBRS) Stock: What to Expect from Tuesday’s Debut Earnings Report[4] Cerebras: Can it turn AI hype to repeatable revenue?[5] Wedbush gives a thumbs up to Cerebras ahead of its first quarterly earnings. What this means for CBRS stock investors.
