Cerebras Systems Stock Plunges 14% After Q2 GAAP Revenue Miss Despite Raised Full-Year Outlook

Cerebras Systems shares fell roughly 14% after the AI chip company reported second-quarter results that missed Wall Street expectations on a GAAP basis, even as its core metrics beat and it raised full-year guidance. GAAP revenue came in at $180.1 million, below the $194 million analyst estimate and up 74% year over year, while the company posted a GAAP loss per share of $2.98, steepening from a $1.91 loss in the same period a year ago. On a core basis, revenue reached $209.9 million, ahead of the $194 million estimate and up 103% year over year.

The miss was driven primarily by hardware revenue of $54.1 million, which fell well short of the $73.1 million expected, while cloud revenue of $126.0 million beat the $116.3 million estimate and surged 287% year over year. Core gross margin expanded 940 basis points to 41%, and core operating margin improved 2,600 basis points to negative 16%. For full-year 2026, the company raised its core revenue guidance to a range of $880 million to $890 million, above the prior consensus estimate of $868 million.

The stock's sharp drop reflects investor focus on the GAAP shortfall and widening per-share losses, despite the stronger cloud performance and improved outlook.