Cerebras Lands Microsoft Deal as Profit Test Nears Moz Farooque ACCA Fri, November 13, 2026 at 12:34 PM EST 2 min read CBRS +12.18% MSFT +0.26% Trade MSFT on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Cerebras Systems (NASDAQ:CBRS) signed Microsoft (NASDAQ:MSFT) as a cloud customer and raised its full-year revenue outlook, sending shares up more than 17% in Thursday's after-hours trading, according to Reuters. The deal gives Cerebras another source of demand beyond OpenAI. For shareholders, the next test is whether a broader customer base helps turn rapid cloud growth into operating profit.
Warning! GuruFocus has detected 3 Warning Signs with CBRS.
Is CBRS fairly valued? Test your thesis with our free DCF calculator.
Cerebras designs AI processors built on an entire silicon wafer. It sells systems directly and rents computing capacity through its cloud business. Its specialty is fast inference, the work AI models do when generating answers or carrying out tasks.
Cerebras didn't disclose financial terms for the Microsoft deal. Reuters reported that much of the company's $26.1 billion in remaining performance obligations was tied to OpenAI at the end of September. Rosenblatt kept its Buy rating and $170 price target, citing demand from large cloud providers, while flagging data center expansion as a constraint.
Third-quarter GAAP revenue rose 55% to $210.8 million, and the company posted a $161.2 million net loss. On its adjusted basis, cloud and services revenue jumped 272% to $144.9 million. Cerebras raised its 2026 adjusted revenue forecast to $940 million$960 million from $880 million$890 million.
Cerebras expects adjusted gross margin to rise from 41% in the third quarter to 47%49% in the fourth, with adjusted operating margin between negative 1% and positive 1%. The next earnings report will show whether the company can reach that range as deployments expand.
Cerebras has 700 megawatts of data center capacity under contract. The timing of when that capacity goes live will affect how quickly customer commitments become revenue. Faster deployments and a smaller share of sales tied to OpenAI would strengthen the case for sustained growth. Delays could leave that concentration in place longer.
