Cerebras falls 10% after chipmaker forecasts shrinking margin in first earnings report since IPO
Cerebras Systems reported Q1 2026 revenue of $193.4 million, a 92% increase year-over-year. Despite beating estimates and securing a $20 billion deal with OpenAI, shares fell 10% in extended trading. Investors reacted negatively to a full-year gross margin forecast of 38% to 41%, which is lower than the 47% reported in the first quarter.
What changed
The company released its first financial results since its May IPO, showing strong revenue growth but shrinking margin projections.
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Cerebras Shares Drop 10% Following First Post-IPO Earnings Report
confidence 95%Cerebras Systems reported Q1 2026 revenue of $193.4 million, a 92% increase year-over-year. Despite beating estimates and securing a $20 billion deal with OpenAI, shares fell 10% in extended trading. Investors reacted negatively to a full-year gross margin forecast of 38% to 41%, which is lower than the 47% reported in the first quarter.
What's confirmed:
- Cerebras reported Q1 2026 revenue of $193.4 million, representing 92% year-over-year growth.
- The company went public on the Nasdaq in May.
- Cerebras shares fell 10% in extended trading on Tuesday.
- The company forecast full-year 2026 adjusted gross margins between 38% and 41%, down from 47% in the first quarter.
- Cerebras announced a $20 billion multi-year partnership with OpenAI.
Still unconfirmed:
- The company also landed a partnership with AWS as part of a $20 billion deal.
- The company projected full-year negative margins.