Cerebras Systems Inc (CBRS.O): Lifting Full Year Outlook; Maintain Buy w/$340 PT

Research evidence excerpt

Cerebras Systems Inc (CBRS.O): Lifting Full Year Outlook; Maintain Buy w/$340 PT

Cerebras Systems Inc (CBRS.O)

23 June 2026 Citi Research

Mar-Q Earnings Review

March-Q Results: CBRS reported its first earnings as a public company, and the

results showed strong top-line. GAAP revenue came in at $193.4M, up 94% yoy

and 13% qoq, while core revenue was $191.3M, up 92% yoy. Within that, core

hardware revenue was $111.6M, up 60% yoy and represented 58% of sales while

core cloud and inference services revenue was $79.8M, representing a rapid 167%

yoy growth as the services side of the business is scaling quickly off a smaller base.

Core gross margin for the quarter was 47%, and the company posted a core net loss

of $2.5M vs Citi’s -37M expectations.

Guide: Cerebras guided full-year 2026 core revenue to a range of $855M to

$865M, implying about 69% growth at the midpoint. While the company also

guided core gross margin down sharply to a range of 38% to 41% and core

operating margin to a range of negative 28% to negative 32%, both came above Citi

expectations of ~30% GM and -44% OM. The margin step-down reflects the costs

of standing up capacity for its large new infrastructure commitments as the

company initially leverages one of its clients’ Cerebras servers to fulfill the near-

term demand. Near term, Cerebras guided the Jun-Q core sales of ~194M (7%

above Citi’s $181M).

Figure 1. Cloud Sales & GM Estimates

© 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.

Source: Citi Research, Company Reports

On the demand side, the company disclosed a contracted backlog, or remaining

performance obligations, of $24.6B. Cerebras also announced a new multi-year

partnership with Amazon Web Services to deploy Cerebras inference hardware