TLDR
- Cerebras reported Q2 core revenue of $209.9 million, up 103% year over year
- GAAP cloud revenue jumped 281% to $126 million in the quarter
- The company signed a multiyear OpenAI deal worth more than $20 billion
- Full-year core revenue guidance raised to $880 million to $890 million
- Wall Street holds a Moderate Buy consensus with an average price target of $299.90 vs. a recent price around $191
Cerebras Systems posted Q2 core revenue of $209.9 million, a 103% increase from the same period last year. Cloud and services revenue was the standout, with GAAP cloud revenue rising 281% to $126 million.
The company is shifting from hardware sales toward recurring cloud access, which generally makes revenue more predictable. That transition appears to be gaining traction.
Management lifted full-year core revenue guidance to between $880 million and $890 million. The company also said it expects revenue to more than triple in 2027.
Remaining performance obligations finished the quarter at $25.4 billion, which provides a clearer picture of future revenue if those commitments hold.
The OpenAI Agreement
The headline deal is a multiyear agreement with OpenAI valued at more than $20 billion. Under the terms, OpenAI will deploy 750 megawatts of Cerebras computing capacity.
Cerebras is already powering an ultrafast tier of OpenAI’s GPT-5.6 Sol model. That puts its technology into active production rather than just pilot programs.
The deal carries real concentration risk. If OpenAI changes course or pulls back on infrastructure spending, Cerebras would feel it sharply.
New Hardware and Expanding Customers
Cerebras recently introduced its next-generation CS-4 system. The company says it can deliver more than 4,400 tokens per second per user on one large-model benchmark and run up to 30 times faster than GPU-based setups in certain configurations.
The CS-4 also offers better throughput per watt compared to its predecessor. Cerebras says its systems avoid the high-bandwidth memory and advanced packaging constraints slowing other parts of the AI chip industry.
Manufacturing capacity is expected to grow more than tenfold during 2026.
Beyond OpenAI, Cerebras is working with Amazon and AMD on inference infrastructure. Its customer list includes CrowdStrike, Figma, Block, Cognition, Lovable, AlphaSense and GSK.
That customer growth matters. The long-term case for CBRS depends on proving its speed advantage is useful across a wide range of companies, not just one or two large ones.
Valuation and Analyst Views
Thirteen analysts cover CBRS, with a Moderate Buy consensus. The breakdown is one Strong Buy, nine Buys, two Holds and one Sell.
The average 12-month price target sits at $299.90. The stock was recently trading around $191, which implies roughly 57% upside if analysts are right.
Cerebras carries a market cap of around $45 billion. Against 2026 revenue guidance, the stock trades at roughly 50 times projected annual revenue.
The company is not yet profitable. Investors are pricing in successful execution of the OpenAI contract, continued cloud growth and a larger role in the AI infrastructure market.
The average 12-month price target from Wall Street currently stands at $299.90 against a recent trading price of around $191.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
