Cerebras raises revenue outlook as Microsoft joins cloud customers

Cerebras expects annual core revenue between US$940 million and US$960 million, increasing its outlook after third-quarter earnings exceeded analyst forecasts, Reuters reported. Separately, chief executive Andrew Feldman identified Microsoft as the AI chipmaker’s latest cloud customer in an interview with CNBC.

The revenue projection replaces an August estimate of US$880 million to US$890 million. Shares gained about 17% in Thursday’s extended trading. Cerebras uses an adjusted core revenue measure that excludes stock-based compensation and certain data center costs while adding back customer share-warrant value.

For the quarter ended September 30, Cerebras reported US$230.9 million in core revenue, a 70% increase. That compared with a US$214.7 million analyst estimate in LSEG data cited by CNBC. Cloud and services revenue reached US$141.9 million, rising 265%, but hardware sales dropped from US$96.8 million to US$68.9 million.

Adjusted profit totaled US$29.8 million, rather than the US$38.4 million loss analysts anticipated, Reuters reported. The GAAP figures showed a different picture: net losses grew from US$22.2 million to US$161.2 million. Stock-based compensation of US$155.1 million explained most of the gap between the accounting measures.

Feldman told CNBC that Microsoft signed the agreement in October, with revenue expected to begin during the first quarter of 2027. Cerebras had initially identified the customer as one of the three largest hyperscalers without naming it. Amazon and Oracle are also customers.

Feldman said insufficient capacity prevented a broad rollout of OpenAI’s Ultrafast tier. Cerebras has contracted for 700 megawatts of data center capacity, including locations in Norway and Finland, with delivery scheduled by the end of 2027. He told CNBC that financing options were under consideration as the company sought to meet demand.