Cerebras raised its 2026 revenue outlook after cloud services demand pushed its third-quarter results higher, and the company has signed Microsoft as a new cloud customer. The revised full-year forecast is $940 million to $960 million in Cerebras’s adjusted “Core” revenue, up from $880 million to $890 million. But the quarter was not growth across every business line: hardware revenue fell year over year, and Cerebras reported a $161 million GAAP net loss.

The company’s Nov. 12 results show how AI infrastructure suppliers are trying to turn demand for faster inference into recurring cloud sales, while continuing to invest heavily in systems and capacity.

What changed in the forecast?

Cerebras raised its full-year 2026 Core revenue outlook to $940 million–$960 million in its Nov. 12 results. Its prior forecast was $880 million–$890 million in the company’s August results. The current guidance also calls for a 42%–44% Core gross margin. These are company forecasts, not completed results.

For the quarter ended Sept. 30, Cerebras reported $210.8 million in GAAP revenue, up 55% from a year earlier. The company’s non-GAAP Core revenue was $230.9 million, up 70%. Cerebras uses “Core” for an adjusted measure that excludes items such as stock-based compensation, non-cash customer-warrant amortization, data-center pass-through revenue and costs, and certain other items. It should not be confused with GAAP revenue or treated as a substitute for it; the company says non-GAAP figures should be considered alongside GAAP results.

Cloud sales drove the growth, while hardware revenue declined

According to the company’s filing, GAAP cloud and other services revenue rose 265% year over year to $141.9 million. By contrast, hardware revenue was $68.9 million, compared with $96.8 million in the same quarter last year. The Wall Street Journal likewise noted that direct chip sales fell while cloud demand lifted the outlook. The quarter’s growth was being led by services rather than by higher direct hardware sales.

The GAAP income statement also reported a net loss of $161.2 million, compared with a $22.2 million loss a year earlier. Cerebras says its non-GAAP measures are supplemental, and that investors should consider them alongside—not instead of—its GAAP results.

What the Microsoft deal adds

Cerebras CEO Andrew Feldman told CNBC that Microsoft signed a cloud deal in October and that revenue from the agreement is expected to begin in the first quarter of 2027. Reuters also reported the new Microsoft customer relationship and said further details were expected next year. Neither report provided the contract’s financial terms.

Cerebras’s formal earnings release refers to commercial wins with two new hyperscalers but does not name them. It separately says 700 megawatts of data-center capacity are under contract. That is a company-reported capacity figure, not a measure of capacity already operating.

The arrangement broadens Cerebras’s path to market beyond selling systems directly: customers can access its computing through Cerebras Cloud or third-party cloud providers, the company says. But the timing of Microsoft revenue and the undisclosed deal terms leave open how much the new relationship will contribute to results.

What remains uncertain?

Cerebras’s forecast depends on delivering additional computing capacity and turning customer agreements into usage and revenue. The company says it is evaluating financing options to support demand, according to CNBC. The gap between its adjusted Core metrics and GAAP results also matters when judging profitability. Cerebras reported a GAAP operating loss of $224.1 million in the third quarter.

For now, the results point to strong growth in cloud and services, alongside weaker hardware revenue and substantial GAAP losses. The Microsoft deal is a notable customer win, but its commercial impact will become clearer only after Cerebras reports results from the expected 2027 revenue start.

Frequently asked questions

What is Cerebras’s new 2026 revenue forecast?

Cerebras expects $940 million to $960 million in Core non-GAAP revenue for 2026, up from its previous $880 million to $890 million range.

How much did Cerebras’s cloud revenue grow?

Its GAAP cloud and other services revenue was $141.9 million in the third quarter, up 265% from a year earlier. The company’s adjusted Core cloud and services figure was $144.9 million, up 272%.

When will the Microsoft agreement start producing revenue?

CEO Andrew Feldman told CNBC that Cerebras expects revenue to begin in the first quarter of 2027. The companies have not publicly disclosed the financial terms in the sources reviewed.

Was Cerebras profitable in the third quarter?

No. Cerebras reported a GAAP net loss of $161.2 million. Its “Core” revenue and margin figures are non-GAAP measures and should be considered alongside the company’s GAAP results.