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Cerebras Systems, Inc. Class A
(NASDAQ:CBRS)
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Rating:54Neutral
Price Target:
$185.00
▼(-11.93% Downside)
Action:Reiterated
Date:10/06/26
CBRS earns a mid-range score primarily because financial risk and inconsistency (negative equity, rising debt, and volatile cash flow despite strong revenue growth) and weak technical momentum weigh heavily. The latest earnings call provides a meaningful offset with upgraded guidance, strong YoY execution, and substantial RPO/liquidity, but valuation support is limited by a negative P/E and no dividend yield.
Positive Factors
Rapid revenue growth and raised guidance
Revenue more than doubled year over year and management raised 2026 guidance, indicating strong demand and execution momentum. If sustained, this scale can improve fixed-cost absorption, expand customer reach, and create a larger base for cloud and services growth over the next several quarters.
Negative Factors
Negative equity and rising debt
Persistently negative equity, despite improvement from about -$967M to -$579M, and debt rising to about $262M from $41M weaken the capital structure. This can constrain financial flexibility and make the company more exposed to funding, leverage, and execution pressures while it expands.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth and raised guidance
Revenue more than doubled year over year and management raised 2026 guidance, indicating strong demand and execution momentum. If sustained, this scale can improve fixed-cost absorption, expand customer reach, and create a larger base for cloud and services growth over the next several quarters.
Read all positive factors
Cerebras Systems, Inc. Class A (CBRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.75B
Dividend YieldN/A
Average Volume (3M)7.01M
Price to Earnings (P/E)―
Beta (1Y)5.32
Revenue Growth90.83%
EPS Growth-275.74%
CountryUS
Employees708
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)-3.04
Shares Outstanding112,247,110
10 Day Avg. Volume9,920,212
30 Day Avg. Volume7,011,123
Financial Highlights & Ratios
PEG Ratio-6.42
Price to Book (P/B)-115.70
Price to Sales (P/S)131.28
P/FCF Ratio-170.45
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue115.96
Enterprise Value/Gross Profit387.65
Enterprise Value/Ebitda-102.46
Forecast
1Y Price Target
$288.67Price Target Upside37.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)-0.5
Revenue Forecast (FY)$863.39M
Cerebras Systems, Inc. Class A Business Overview & Revenue Model
Company Description
Cerebras Systems Inc. is a leading innovator in artificial intelligence infrastructure. The company develops and manufactures an advanced AI compute platform, integrating proprietary hardware systems and software. This platform is delivered in rac...
Cerebras Systems, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 29, 2027
Earnings Call Sentiment Positive
The call emphasized strong execution and rapid revenue and margin improvement year-over-year, driven by outsized cloud growth, strategic partnerships (OpenAI, AWS, AMD), large RPO ($25.4B), healthy liquidity (~$8.6B) and secured supply/manufacturing expansion. Short-term pressure on sequential gross margin from rented capacity, an ongoing operating loss, dependence on data center build-out speed, and customer concentration present execution and timing risks. Overall, the positives — record growth, margin expansion YoY, large backlog, and clear roadmap/partnership traction — outweigh the near-term challenges.Positive Updates
Record Core Revenue and Upgraded Guidance
Core revenue of $209.9M in Q2, up 103% year-over-year. Company raised full-year 2026 core revenue guidance to $880M–$890M and expects to more than triple core revenues in 2027.
Negative Updates
Sequential Gross Margin Pressure from Rented Capacity
Core gross margin fell sequentially from 46.5% in Q1 2026 to 40.6% in Q2 2026 due to temporarily renting systems back from cloud customers to meet demand. Management said margins would be ~500 basis points higher this quarter absent that rented capacity.
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Q2-2026 Updates
Positive
Negative
Record Core Revenue and Upgraded Guidance
Core revenue of $209.9M in Q2, up 103% year-over-year. Company raised full-year 2026 core revenue guidance to $880M–$890M and expects to more than triple core revenues in 2027.
Read all positive updates
Company Guidance
Management guided Q3 core revenue of $214–216M with core gross margin of 38–40% and core operating margin of −25% to −23%, and raised full‑year 2026 guidance to core revenue of $880–890M, core gross margin of 41–43% and core operating margin of −19% to −17%. In Q2 they reported core revenue of $209.9M (+103% YoY) — core cloud & services $127.7M (+287% YoY) and core hardware $82.1M (+17% YoY) — with Q2 core gross margin 40.6% (+940 bps YoY), core cloud gross margin 41.8% (+1,600 bps), core hardware gross margin 38.8% (+510 bps), and a core operating loss of $33.6M (core operating margin −16%, a ~2,600 bps improvement YoY). They closed the quarter with $8.6B+ in cash and equivalents, $25.4B of RPO, >600 MW of data‑center capacity secured for delivery by end‑2027, manufacturing capacity on track to increase >10x in 2026 (with facilities contracted 3–4x for 2027), a 5x throughput boost via disaggregation, plans to increase throughput >20x and double system speed each year (CS5 targeted H2’27), and a long‑term core gross‑margin target of 60%+.Cerebras Systems, Inc. Class A Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
34
Negative
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 373.52M | 509.99M | 290.25M | 78.74M | 24.62M |
| Gross Profit | 111.73M | 199.07M | 122.74M | 26.36M | 2.89M |
| EBITDA | -422.74M | 279.34M | -468.14M | -116.44M | -165.57M |
| Net Income | -464.53M | 237.83M | -481.60M | -127.16M | -177.72M |
Balance Sheet | |||||
| Total Assets | 11.63B | 2.33B | 1.11B | 225.50M | 281.49M |
| Cash, Cash Equivalents and Short-Term Investments | 8.61B | 1.11B | 337.15M | 152.39M | 225.33M |
| Total Debt | 1.49B | 261.82M | 40.67M | 560.00K | 1.30M |
| Total Liabilities | 2.47B | 2.90B | 2.08B | 784.46M | 747.83M |
| Stockholders Equity | 9.15B | -578.65M | -966.79M | -558.96M | -466.33M |
Cash Flow | |||||
| Free Cash Flow | -596.36M | -392.79M | 428.54M | -85.57M | -174.87M |
| Operating Cash Flow | -47.49M | -10.05M | 451.98M | -78.98M | -164.40M |
| Investing Cash Flow | -1.31B | -667.58M | -16.79M | 81.70M | 137.39M |
| Financing Cash Flow | 7.85B | 1.03B | 112.30M | 5.93M | 9.10M |
Cerebras Systems, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
88 Outperform | $5.53T | 28.84 | 110.11% | 0.23% | 83.38% | 124.42% | |
79 Outperform | $992.71B | 154.34 | 10.07% | ― | 39.54% | 125.82% | |
76 Outperform | $187.41B | 19.99 | 37.33% | 2.06% | 1.87% | -16.70% | |
75 Outperform | $284.39B | 274.52 | 13.00% | ― | 25.12% | 48.03% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $553.46B | -49.62 | -10.76% | 2.63% | 7.47% | 55.56% | |
54 Neutral | $36.75B | -50.33 | -11.59% | ― | 90.83% | -275.74% |
* General Sector Average
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Cerebras Systems, Inc. Class A
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-47.22%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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