Cerebras Systems (NASDAQ:CBRS) Shares Gap Down After Earnings Miss

Cerebras Systems Inc. (NASDAQ:CBRS)’s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $262.06, but opened at $220.00. Cerebras Systems shares last traded at $230.0010, with a volume of 5,378,187 shares trading hands.

The company reported ($2.98) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The business had revenue of $209.87 million for the quarter. The company’s revenue for the quarter was up 74.3% on a year-over-year basis.

Key Stories Impacting Cerebras Systems

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Cerebras reported second-quarter revenue of $209.9 million, up 74.3% year over year. Its fast-inference cloud business grew 287% to $127.7 million, highlighting continued demand for its AI systems. Cerebras raises annual targets on strong AI chip demand
• Positive Sentiment: The company raised its 2026 revenue forecast to $880 million-$890 million, above the $864.6 million analyst consensus, and projected third-quarter revenue of $214 million-$216 million versus expectations of $211 million.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating with a $300 price target, while Mizuho maintained an “outperform” rating and set a $300 target after lowering its previous target from $310. Both targets imply approximately 14.5% potential upside from the referenced price. Analyst ratings and price targets
• Positive Sentiment: A planned Minnesota AI data-center campus with CleanCore Solutions, which is rebranding as Zone Frontier, represents approximately $800 million of contracted value over an initial 10-year term and could exceed $3 billion if extended. CleanCore Minnesota AI data-center update
• Negative Sentiment: Adjusted earnings were a loss of $2.98 per share, far below the expected loss of $0.21. The sharp bottom-line miss overshadowed the revenue growth and raised concerns about profitability and execution.
• Negative Sentiment: Investors also questioned whether Cerebras can effectively challenge Nvidia in AI chips. The results have therefore weakened the near-term growth narrative, even though management raised its revenue and gross-margin outlook. Cerebras slumps as mixed quarterly results test AI growth narrative

Analyst Ratings Changes

A number of equities analysts have recently weighed in on CBRS shares. Zacks Research raised Cerebras Systems to a “hold” rating in a report on Tuesday, June 9th. Craig Hallum assumed coverage on Cerebras Systems in a research report on Monday, June 8th. They set a “buy” rating and a $325.00 price objective for the company. Barclays started coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They issued an “overweight” rating and a $280.00 target price for the company. UBS Group restated a “buy” rating and issued a $330.00 target price on shares of Cerebras Systems in a report on Thursday. Finally, Citigroup reaffirmed a “buy” rating on shares of Cerebras Systems in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $301.90.

Insiders Place Their Bets

In other news, COO Dhiraj Mallick sold 10,000 shares of the firm’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $206.51, for a total transaction of $2,065,100.00. Following the sale, the chief operating officer owned 10,000 shares in the company, valued at $2,065,100. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Andrew D. Feldman sold 17,990 shares of Cerebras Systems stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $173.06, for a total value of $3,113,349.40. Following the completion of the sale, the chief executive officer directly owned 17,990 shares of the company’s stock, valued at approximately $3,113,349.40. This represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 117,547 shares of company stock worth $20,676,799 over the last ninety days.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Cerebras Systems stock. Bank of New York Mellon Corp acquired a new position in shares of Cerebras Systems Inc. (NASDAQ:CBRS) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 27,682 shares of the company’s stock, valued at approximately $6,118,000.

Cerebras Systems Trading Down 10.9%

The firm has a 50-day moving average of $208.55.

Cerebras Systems Company Profile

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.