Key facts
- Cerebras Systems raised its annual revenue and gross margin forecasts.
- The company expects 2026 adjusted revenue between $880 million and $890 million.
- Annual adjusted gross margin is forecast at 41% to 43%.
- Second-quarter sales increased by 74.3% to $180.11 million.
- Cerebras is working to expand chip volumes to support a $20 billion multi-year agreement with OpenAI.
Cerebras Systems has raised its annual revenue and gross margin forecasts, driven by strong demand for its AI chips as companies expand data-center capacity. The company is positioning its flagship wafer-scale engine (WSE) as a more efficient alternative to connecting thousands of smaller graphics processors, aiming to challenge Nvidia's dominance in the AI processor market.
The WSE, a single large chip with trillions of transistors, is designed to accelerate inference and reduce data transfer delays by placing memory directly on the chip. This design is crucial for handling the data crunching required by AI services like chatbots.
Cerebras' finance chief, Bob Komin, stated that the company has made rapid progress in key areas to deliver exceptional growth against its remaining performance obligations of $25.4 billion and plans to more than triple revenue by 2027. For 2026, Cerebras now expects adjusted revenue between $880 million and $890 million, an increase from its previous forecast of $855 million to $865 million. The annual adjusted gross margin is projected to be between 41% and 43%, up from the earlier estimate of 38% to 41%. Analysts, on average, anticipate a gross margin of 35.89%.
In the second quarter, Cerebras' sales surged by 74.3% to $180.11 million, with an adjusted loss of $6.91 million, a narrower deficit compared to the $40.5 million loss reported a year ago. The company is actively working to increase chip production volumes to fulfill a $20 billion multi-year agreement to provide AI compute power to OpenAI, a deal considered vital for validating its valuation. Revenue from cloud and services, reflecting the OpenAI ramp-up, nearly quadrupled to $127.73 million in the second quarter.