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Industry · Jun 25, 2026

Cerebras stock falls nearly 20% after narrower margin guidance spooks investors

The AI chipmaker reported better-than-expected revenue and narrowed losses, but forecast a 38–41% full-year gross margin, down from 47% in Q1, citing temporary equipment rentals to a major customer.

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TL;DR
  • Cerebras Systems' stock dropped nearly 20% after the company forecast a narrower full-year gross margin of 38–41%, compared with 47% in Q1.
  • CEO Andrew Feldman attributed the margin outlook to temporary rentals of equipment back from a major customer while Cerebras builds out its own data center capacity.
  • The company reported Q1 revenue of $193 million, up 94% year-over-year, and a narrowed net loss of $14 million, down from $23.9 million a year earlier.

Cerebras Systems' shares fell nearly 20% on June 24, 2026, after the company reported first-quarter earnings and issued guidance that spooked investors. The AI chipmaker forecast a full-year gross margin of 38% to 41%, a decline from the 47% gross margin it reported in the first quarter. The stock hit a new low, approaching the company’s IPO price.

CEO Andrew Feldman told CNBC that investors had misinterpreted the company’s margin guidance. He explained that Cerebras would temporarily rent back some of its own equipment from one of its largest customers while it builds out and deploys its own data center capacity. This decision is expected to reduce profit margins in the near term.

Cerebras reported first-quarter revenue of $193 million, a 94% increase year-over-year. The company also narrowed its net loss to $14 million, down from a $23.9 million loss in the same period a year earlier.

Sources
  1. 01TechCrunch — AICerebras stock plunges after earnings as CEO says margin outlook was misunderstood
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