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Cerebras Posts Its First Adjusted Profit Since Going Public and Signs Microsoft as Its Third Hyperscaler

Business · By: AIReport Admin · 8 hours ago · 👁 14
Cerebras Posts Its First Adjusted Profit Since Going Public and Signs Microsoft as Its Third Hyperscaler

Cerebras reported third-quarter adjusted revenue of $230.9 million, up 70 percent year over year and above the $214.7 million estimate, with adjusted net income of $29.82 million, its first adjusted profit since its May IPO. It signed Microsoft as a third hyperscaler cloud customer after AWS and Oracle, raised its full-year outlook to $940 million to $960 million, and said OpenAI deliveries are constrained by land and power shortages.

Cerebras Systems gave the market two things it had been waiting for on Thursday: its first adjusted profit since going public, and a second named hyperscaler win beyond OpenAI. Shares jumped more than 17 percent in extended trading after the wafer-scale AI chipmaker reported third-quarter results that beat expectations on both revenue and profit.

The numbers, adjusted: revenue of $230.9 million, up 70 percent year over year and above the $214.7 million analysts expected; adjusted net income of $29.82 million, against an adjusted loss of $10.86 million a year earlier and far ahead of the $38.4 million adjusted loss Wall Street had modeled. On standard accounting, revenue rose 55 percent to $210.8 million. Adjusted cloud and services revenue more than doubled to $144.9 million, growth the company attributes largely to the OpenAI deal.

The new customer is Microsoft. Cerebras said it signed a cloud deal with Microsoft, its third hyperscaler customer after Amazon Web Services and Oracle, with revenue expected to start flowing in the first quarter of 2027 and more details due in the first half of next year. Financial terms were not disclosed.

Cerebras raised its full-year adjusted revenue outlook to $940 million to $960 million, from $880 million to $890 million, and guided fourth-quarter adjusted revenue to roughly $310 million to $330 million against a consensus near $271 million. It reiterated a plan to triple revenue in 2027 and said adjusted gross margin should climb from 41 percent in the third quarter to 47 to 49 percent in the fourth.

The OpenAI relationship remains the engine and the constraint at once. Remaining performance obligations tied to the multi-year deal stood at $26.1 billion as of September 30. CEO Andrew Feldman said delivery delays under the $20 billion agreement stem from industry-wide shortages of land and power, not from chip manufacturing, and acknowledged Cerebras still lacks the capacity to support a broad rollout of OpenAI's faster Ultrafast service tier even as OpenAI's business has grown since the second quarter.

Context matters for the stock: even after the after-hours pop, the shares had closed Thursday down 47.2 percent from their $185 May IPO price, and the company says it has 700 megawatts of data center capacity under contract. How fast that capacity goes live decides how quickly $26.1 billion of commitments converts into revenue.

The quarter is a proof point for the argument that AI inference demand can fund a second chip vendor, but the concentration question is only partially answered. Microsoft broadens the customer list to three hyperscalers, yet OpenAI still dominates remaining obligations, and Cerebras's path to sustained profitability now runs through data center construction schedules it does not fully control.

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