Cerebras Systems reported third quarter core revenue of $230.9 million, up 70 percent year on year and ahead of the $214.7 million LSEG consensus, with a loss per share of 67 cents, and guided fourth quarter revenue to $310 million to $330 million against $271 million expected, at a core gross margin of 47 to 49 percent. Chief executive Andrew Feldman told CNBC that Microsoft signed a deal with the company in October, that revenue from it should begin to show up in the first quarter of 2027, and that Cerebras is evaluating financing options to meet ramping demand. The company expects revenue to roughly triple in 2027 to about $2.85 billion, and the shares rose 18 percent in extended trading, though they remain about 47 percent below their level at the May Nasdaq debut.
Management added detail on the earnings call reported by The Next Platform on November 14. Cerebras ended the third quarter with 7.36 billion dollars in cash and equivalents and a revenue backlog of 26.1 billion dollars, mostly from the OpenAI deal, and Feldman said the company expected to triple its sales in 2027. The next generation Wafer Scale Engine 5 taped out on June 15, is back from the fab ahead of schedule and is already running models in system testing; the CS-5 system built on it will more than double the speed of the CS-4 and enter production in early summer 2027, built on TSMC’s 5 nanometer node. The Microsoft cloud deal named in the original report makes Microsoft the fourth named cloud customer alongside OpenAI, Amazon Web Services and Oracle Cloud.