CBRS Shares Drop 9% After-Hours on Mixed Q1 Earnings and Margin Guidance

On Tuesday after-hours, Cerebras Systems (CBRS) shares fell more than 9% following the chipmaker's first earnings report since its May 2026 IPO, marked by strong revenue growth offset by an earnings miss and margin pressure.

CBRS reported Q1 revenue of $193.4 million, beating analyst expectations of $180.8 million, with 94% year-over-year growth. Hardware sales accounted for $110.6 million while cloud services generated $82.8 million. However, the company posted a non-GAAP adjusted net loss of $0.22 per share, wider than the projected $0.16 loss. For Q2, Cerebras guided gross margins to 36-38%, a sharp decline from Q1's 47% core gross margin. Full-year 2026 revenue guidance of $855-865 million exceeded analyst expectations of $828 million.