Cerebras raises 2026 forecast as Q3 sales jump 70%
Cerebras Systems has raised its annual revenue forecast after third-quarter sales jumped 70% year on year, beating analysts' expectations, in the latest sign that demand for AI computing capacity remains strong.
The AI chipmaker said on Thursday 12 November 2026 that it now expects 2026 adjusted revenue of $940 million to $960 million, up from its previous forecast of $880 million to $890 million. Shares rose 11% in extended trading after the results were released.
Third-quarter sales beat forecasts
Third-quarter adjusted sales rose 70% to $230.9 million, ahead of the $214.70 million average estimate compiled by LSEG. The company had guided to $214 million to $216 million for the quarter, so the result also came in above its own expectations.
Cerebras is a challenger to Nvidia in AI processors, building wafer-scale chips designed for training and running large AI models. It went public earlier this year and Thursday's was its third earnings report as a listed company.
OpenAI deal drives cloud growth
Core cloud and services revenue, which reflects the company's deal with OpenAI, more than tripled to $144.9 million in the quarter. The OpenAI agreement accounts for the bulk of Cerebras' $25.4 billion backlog of signed customer contracts, with more than $20 billion of that total tied to the ChatGPT maker.
That concentration is also the main question hanging over the company. OpenAI accounted for 32% of revenue in the June quarter, and investors want evidence that Cerebras can broaden its customer base beyond a single large buyer.
Losses widen despite the sales jump
The sales growth has not yet translated into profit. Cerebras' net loss widened to 67 cents per share, from 41 cents in the same quarter last year, as the company continued to spend heavily on building out its computing capacity.
Shares had fallen 3.3% to $97.75 in the regular session on Thursday, caught in the wider sell-off in chip stocks, before recovering after the results. The stock has fallen by about a third over the past month, after dropping sharply following its August results, despite the raised forecasts.
What to watch next
Investors will be watching whether the raised full-year forecast is followed by new customer wins and by improving margins. Management has said margins should improve in the current quarter, and the fourth quarter, which the company had previously implied would bring roughly $270 million of core revenue, will be the next test.
The results landed on the same day as record figures from Applied Materials, the chip equipment maker, which reported quarterly revenue up 53% to $10.41 billion. Together, the two reports suggest spending on AI hardware is still growing, even as the market frets about the cost of building it.
