Cerebras Systems (NASDAQ:CBRS) Shares Gap Down Following Weak Earnings

Key Points

• Cerebras shares plunged after the company reported a quarterly loss of $2.98 per share, far worse than the expected $0.21 loss. The stock opened at $220, down from its $262.06 prior close, despite revenue rising 74.3% year over year to $209.9 million.
• Management raised its 2026 revenue forecast to $880 million-$890 million and projected third-quarter revenue above analyst expectations, supported by strong growth in its fast-inference cloud business.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $301.90, but the earnings miss has raised concerns about profitability and Cerebras’s ability to compete with Nvidia.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $262.06, but opened at $220.00. Cerebras Systems shares last traded at $230.0010, with a volume of 5,378,187 shares.

The company reported ($2.98) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The company had revenue of $209.87 million during the quarter. The firm's quarterly revenue was up 74.3% compared to the same quarter last year.

More Cerebras Systems News

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Cerebras reported second-quarter revenue of $209.9 million, up 74.3% year over year. Its fast-inference cloud business grew 287% to $127.7 million, highlighting continued demand for its AI systems. Cerebras raises annual targets on strong AI chip demand
• Positive Sentiment: The company raised its 2026 revenue forecast to $880 million-$890 million, above the $864.6 million analyst consensus, and projected third-quarter revenue of $214 million-$216 million versus expectations of $211 million.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating with a $300 price target, while Mizuho maintained an “outperform” rating and set a $300 target after lowering its previous target from $310. Both targets imply approximately 14.5% potential upside from the referenced price. Analyst ratings and price targets
• Positive Sentiment: A planned Minnesota AI data-center campus with CleanCore Solutions, which is rebranding as Zone Frontier, represents approximately $800 million of contracted value over an initial 10-year term and could exceed $3 billion if extended. CleanCore Minnesota AI data-center update
• Negative Sentiment: Adjusted earnings were a loss of $2.98 per share, far below the expected loss of $0.21. The sharp bottom-line miss overshadowed the revenue growth and raised concerns about profitability and execution.
• Negative Sentiment: Investors also questioned whether Cerebras can effectively challenge Nvidia in AI chips. The results have therefore weakened the near-term growth narrative, even though management raised its revenue and gross-margin outlook. Cerebras slumps as mixed quarterly results test AI growth narrative

Analyst Ratings Changes

CBRS has been the topic of several recent analyst reports. Mizuho cut their price objective on shares of Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating on the stock in a report on Thursday. Craig Hallum initiated coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They set a "buy" rating and a $325.00 target price for the company. Citigroup reiterated a "buy" rating on shares of Cerebras Systems in a research report on Thursday. Zacks Research raised Cerebras Systems to a "hold" rating in a research note on Tuesday, June 9th. Finally, Barclays started coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They issued an "overweight" rating and a $280.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $301.90.

Insiders Place Their Bets

In other Cerebras Systems news, CTO Sean Lie sold 10,033 shares of Cerebras Systems stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $170.07, for a total transaction of $1,706,312.31. Following the transaction, the chief technology officer owned 10,033 shares of the company's stock, valued at $1,706,312.31. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Yagnesh Patel sold 3,954 shares of Cerebras Systems stock in a transaction on Friday, June 26th. The shares were sold at an average price of $174.03, for a total transaction of $688,114.62. Following the completion of the transaction, the chief accounting officer owned 3,954 shares in the company, valued at approximately $688,114.62. This represents a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 117,547 shares of company stock valued at $20,676,799 over the last quarter.

Institutional Investors Weigh In On Cerebras Systems

A hedge fund recently bought a new stake in Cerebras Systems stock. Bank of New York Mellon Corp acquired a new position in shares of Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 27,682 shares of the company's stock, valued at approximately $6,118,000.

Cerebras Systems Trading Down 10.9%

The business's 50-day moving average price is $208.55.

About Cerebras Systems

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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