GoKawiilCerebras stock jumps 18% on strong revenue beat and new Microsoft deal
Cerebras Systems reported third-quarter core revenue of $230.9 million, up 70% year-over-year and above the $214.7 million analysts expected, though its loss per share came in wider than forecast at 67 cents. CEO Andrew Feldman said Microsoft signed a new agreement in October, with revenue from that deal expected to appear in the first quarter of 2027, adding to existing partnerships with Amazon and Oracle. Cerebras also guided fourth-quarter revenue of $310-330 million with gross margins of 47-49%, both above Street estimates, sending shares up 18% in extended trading.
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The results suggest Cerebras is finding traction in selling AI chips to major cloud providers at a time when Nvidia GPU shortages and high prices are pushing some customers to seek alternatives, according to Feldman. Winning Microsoft as a customer could lend Cerebras credibility as a viable Nvidia challenger, though the company is still posting losses and says it is evaluating financing options to keep up with demand, indicating capital needs remain significant. The timing also coincides with Nvidia founder Jensen Huang's resignation, adding uncertainty to the competitive landscape Cerebras is targeting.
- Cerebras' core revenue rose 70% year-over-year to $230.9 million, beating consensus estimates of $214.7 million.
- A new Microsoft deal signed in October is expected to start generating revenue in Q1 2027, joining existing Amazon and Oracle partnerships.
- Q4 guidance of $310-330 million in revenue and 47-49% gross margin exceeded analyst expectations, though the company still posted a wider-than-usual loss.
Source: cnbc.com — Jordan Novet, 2026-11-12
Published there as: “Cerebras surges 18% after beating on quarterly revenue and announcing Microsoft deal”
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