Q1 2026 revenue jumped 94% year-over-year to $193.4 million, but margin outlook spooks investors.
Cerebras Systems posted Q1 2026 revenue of $193.4 million, a 94% increase from the same period last year, as demand for its AI hardware accelerated. Net loss narrowed to $14 million, or 22 cents per share, from $23.9 million a year earlier.
The company’s core gross margin hit 46.5% in Q1 but is expected to decline to 36%-38% in Q2 and stabilize at 38%-41% for the full year. CFO Bob Komin attributed the margin compression to a temporary leaseback of data center capacity, which will weigh on cloud and services margins by 10 to 15 percentage points through 2026.
Cerebras guided Q2 core revenue to $194 million, an 88% year-over-year increase, and projected full-year revenue between $855 million and $865 million. Shares fell 11% in after-hours trading following the margin warning.