Cerebras surges 17% after beating on quarterly revenue and announcing Microsoft deal

Cerebras Systems beat analysts’ expectations for quarterly results and its fourth-quarter outlook, while announcing a new deal with Microsoft. Its shares rose 17% in extended trading, as the company seeks to capitalise on demand for AI chips and challenge Nvidia.

Core revenue grew 70% from $135.7 million, slower than the 103% growth reported in the previous quarter. Cerebras forecasts fourth-quarter revenue of $310 million to $330 million and a core gross margin of 47% to 49%, both above analyst estimates; it also expects revenue to triple in 2027, implying about $2.85 billion. The Microsoft agreement was signed in October, with revenue expected to begin in the first quarter of 2027, and Cerebras is assessing financing options to meet rising demand.