Why Is CEREBRAS SYS INC Class A (CBRS) Stock Up Today?

Cerebras Systems (CBRS) shares rose 13.03% to $110.49, driven by record third-quarter revenue and a new cloud agreement with Microsoft. The stock extended a rebound that began after hitting all-time lows approximately one week ago.

What Happened

Cerebras reported record Q3 revenue and raised its full-year guidance, with 2026 core revenue now projected between $940M and $960M. CEO Andrew Feldman confirmed on the earnings call that the company signed an important cloud deal with Microsoft. Management indicated that 2027 revenue is expected to triple as the CS-4 chip ramps and Microsoft deployments expand. The company also noted it expects to end 2026 with more than 10x its manufacturing capacity compared to the start of the year. While Feldman stated the company is behind schedule on data center builds, analysts noted that Cerebras avoids the high-bandwidth memory shortage squeezing rivals, reducing its exposure to memory price volatility.

What The Data Shows

The stock opened at $114.00, a 16.6% gap up from the prior close of $97.75. It hit a session high of $120.44 at 9:30 AM ET before settling near $110.40. Volume reached 20.9M shares, which is 2.6x the 3-month daily average. The company has a market cap of $24.0B and remains unprofitable with a trailing twelve-month EPS of -6.33. Revenue grew 90.8% over the same period, though the net margin stands at -75.3%. The 52-week range is $77.84 to $386.34. In the last 90 days, insiders executed 16 sells totaling $394.6M, including recent sales by CTO Lie Sean, CFO Robert Patrick Jr., and COO Dhiraj Mallick. Unusual options activity included $1.2M in call premium with no put premium, with the largest single print at $913K.

What To Watch

Analysts have adjusted their outlooks following the financial update. Mizuho maintains an Outperform rating with a $240 price target, while UBS maintains a Buy rating with a $155 target. Craig-Hallum cut its price target citing lower market multiples. Investors will monitor the pace of the Microsoft deployment and the company’s progress on data center construction schedules.