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Cerebras Systems, Inc. Class A
(NASDAQ:CBRS)
Select Model
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Rating:50Neutral
Price Target:
$203.00
▲(1.95% Upside)
Action:Reiterated
Date:06/26/26
CBRS scores as a high-growth but higher-risk setup: strong revenue acceleration and positive headline profitability are offset by a weak capital structure (negative equity, higher debt) and volatile cash generation. Technicals are currently bearish (below DMA20, negative MACD), and valuation is demanding (very high P/E with no dividend support). The earnings call improves the outlook via strong demand signals and major partnerships, but near-term margin pressure and guided operating losses temper the score.
Positive Factors
Rapid Revenue Growth
Sustained high top-line growth across hardware and cloud services indicates clear product-market fit and rapid commercial adoption. This scale supports operating leverage, improves bargaining power with partners, and provides a runway to invest in data centers and software over the coming months.
Negative Factors
Negative Equity & Rising Debt
A persistently negative equity base and a sizable increase in debt weaken capital structure and limit financial flexibility. This raises refinancing and covenant risk, constrains the company's ability to self-fund rapid data-center expansion, and remains a durable governance and liquidity constraint absent sustained profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Growth
Sustained high top-line growth across hardware and cloud services indicates clear product-market fit and rapid commercial adoption. This scale supports operating leverage, improves bargaining power with partners, and provides a runway to invest in data centers and software over the coming months.
Read all positive factors
Cerebras Systems, Inc. Class A (CBRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.09B
Dividend YieldN/A
Average Volume (3M)6.91M
Price to Earnings (P/E)198.7
Beta (1Y)5.70
Revenue Growth86.88%
EPS GrowthN/A
CountryUS
Employees784
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.22
Shares Outstanding92,130,190
10 Day Avg. Volume5,729,846
30 Day Avg. Volume6,914,346
Financial Highlights & Ratios
PEG Ratio-6.58
Price to Book (P/B)-115.70
Price to Sales (P/S)131.28
P/FCF Ratio-170.45
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue239.16
Enterprise Value/Gross Profit536.76
Enterprise Value/Ebitda14.74K
Forecast
1Y Price Target
$297.56Price Target Upside49.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)-0.94
Revenue Forecast (FY)$862.26M
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...
How the Company Makes Money
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Cerebras Systems, Inc. Class A Earnings Call Summary
Earnings Call Date:Jun 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operating and commercial picture: record revenue growth (92% YoY), rapid cloud expansion (167% YoY growth in cloud services), major strategic deals (OpenAI >$20B, AWS definitive agreement), a clear technology performance advantage (demonstrated ~13x speed vs GPUs) and a very strong balance sheet ($3.3B cash plus recent fundraising). Near-term challenges were emphasized but described as transitory: data center capacity is the principal bottleneck, requiring temporary rented capacity that will depress margins by an estimated 10–15 points for a period, and management guided to negative operating margins for the near term. On balance, the company showed accelerating commercial traction, improving operating leverage and ample liquidity to execute, while calling out short-term margin and execution risks tied to data center scaling.Positive Updates
Record Quarterly Revenue and Strong YoY Growth
Core total revenue of $191.3M in Q1 FY2026, up 92% year-over-year, driven by both hardware and cloud services.
Negative Updates
Near-Term Margin Pressure from Rented Capacity
To meet immediate demand (notably OpenAI), management is temporarily renting third-party data center capacity and expects this to depress core cloud & services margin by ~10–15 percentage points until own capacity ramps.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong YoY Growth
Core total revenue of $191.3M in Q1 FY2026, up 92% year-over-year, driven by both hardware and cloud services.
Read all positive updates
Company Guidance
Cerebras guided Q2 core revenue of about $194 million (≈88% YoY) with core gross margin of 36–38% and a core operating margin of −30% to −32%; for full‑year FY26 it projected core revenue of $855–865 million (≈69% YoY at the midpoint) with core gross margin of 38–41% and core operating margin of −28% to −32%. Management warned near‑term cloud margins will be temporarily depressed (by roughly 10–15 percentage points) due to renting third‑party capacity to meet demand, expects hardware revenue to decline over the next few quarters as mix shifts to cloud and hardware margin to normalize to the low‑30s, and reiterated long‑term targets of ~60% gross margin and ~40% operating margin while ending Q1 with $3.3 billion of cash to support the planned data‑center and capacity buildout.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 | 193.41M | 509.99M | 290.25M | 78.74M | 24.62M |
| Gross Profit | 86.18M | 199.07M | 122.74M | 26.36M | 2.89M |
| EBITDA | 3.14M | 279.34M | -468.14M | -116.44M | -165.57M |
| Net Income | -14.01M | 237.83M | -481.60M | -127.16M | -177.72M |
Balance Sheet | |||||
| Total Assets | 4.95B | 2.33B | 1.11B | 225.50M | 281.49M |
| Cash, Cash Equivalents and Short-Term Investments | 3.26B | 1.11B | 337.15M | 152.39M | 225.33M |
| Total Debt | 1.36B | 261.82M | 40.67M | 560.00K | 1.30M |
| Total Liabilities | 2.20B | 2.90B | 2.08B | 784.46M | 747.83M |
| Stockholders Equity | 2.75B | -578.65M | -966.79M | -558.96M | -466.33M |
Cash Flow | |||||
| Free Cash Flow | -119.64M | -392.79M | 428.54M | -85.57M | -174.87M |
| Operating Cash Flow | 12.34M | -10.05M | 451.98M | -78.98M | -164.40M |
| Investing Cash Flow | -236.62M | -667.58M | -16.79M | 81.70M | 137.39M |
| Financing Cash Flow | 2.04B | 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.86T | 30.60 | 111.66% | 0.14% | 70.68% | 109.57% | |
78 Outperform | $776.41B | 154.59 | 8.08% | ― | 34.97% | 123.87% | |
73 Outperform | $255.99B | 247.10 | 11.86% | ― | 25.12% | 48.03% | |
69 Neutral | $154.99B | 16.81 | 37.33% | 2.15% | 1.87% | -16.70% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | $454.97B | -42.75 | -10.76% | ― | 7.47% | 55.56% | |
50 Neutral | $55.09B | 198.71 | 12.06% | ― | 86.88% | ― |
* General Sector Average
CBRS
Cerebras Systems, Inc. Class A
219.97
-91.10
-29.29%
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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.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.