Cerebras Systems reported third-quarter revenue of $135.7 million, up 70% from the prior year, beating analyst expectations. The company also announced a new deal with Microsoft and guided for fourth-quarter revenue between $310 million and $330 million, above the $271 million consensus forecast. The stock jumped 17% in extended trading.
For the fourth quarter, Cerebras expects a core gross margin of 47% to 49%, compared with analyst expectations of 42.1%. CEO Andrew Feldman said revenue from the Microsoft deal, signed in October, should begin appearing in the first quarter of 2027.
Cerebras expects revenue to triple in 2027 to approximately $2.85 billion. Analysts surveyed by LSEG were modeling $2.92 billion for that year.
Feldman told CNBC that GPU supply constraints and high costs create an opportunity for Cerebras in the hardware market. The company, which competes with Nvidia in AI chips, has also landed deals with Amazon and Oracle. Feldman said Cerebras is evaluating financing options to handle rising demand.
Cerebras shares have fallen about 47% since the company went public on Nasdaq in May.