Cerebras Shares Plunge 17% as CEO Defends 38%-41% Margin Forecast
Updated
Updated · CNBC · Jun 24
Cerebras Shares Plunge 17% as CEO Defends 38%-41% Margin Forecast
3 articles · Updated · CNBC · Jun 24
Summary
Cerebras fell 17% after its first post-IPO earnings report, with CEO Andrew Feldman saying investors misread the company's full-year margin outlook.
The company guided core gross margin to 38%-41% for 2026, down from 47% in the first quarter, excluding customer warrants and data-center pass-through revenue.
Feldman said the path will not be linear because Cerebras must rent back some equipment from a major client, while about 28 million Class A shares become eligible for trading after the earnings release.
Mizuho and Wedbush still raised estimates after the call, but Cerebras also faces pressure to expand data centers as permitting delays and local opposition slow buildouts.