Cerebras Systems Inc.

Strong quarter + beats across core metrics (good) - Q2 core revenue $209.9M, +103% YoY (record). - Core cloud & other services revenue $127.7M, +287% YoY (nearly 4x). - Core gross margin 40.6%, +940 bps YoY; core operating margin -16% vs -42% prior year (≈+2,600 bps improvement). - Full-quarter narrative: improving product/services demand for fast inference, plus operating leverage despite investments.

2026 guidance raised; Q3 seen as margin trough (good + somewhat bad) - Q3 2026 outlook: core revenue $214M–$216M; core gross margin 38%–40%; core operating margin -25% to -23%. - Management says Q3 is the low point for core gross margin. - Full-year 2026 outlook raised: core revenue $880M–$890M; core gross margin 41%–43%; core operating margin -19% to -17%. - Key reason for short-term margin pressure: “rented back” systems to meet fast-inference demand sooner (higher near-term cost).

Huge demand visibility and capacity build plan to support rapid growth (opportunity) - Remaining performance obligations (RPO) at June 30, 2026: $25.4B—framed as high visibility into future revenue. - Management expects to more than triple core revenues in 2027 and continue at multiples afterward. - Capacity progress: - Secured 600+ MW of data center capacity live or under contract for delivery by end of 2027; pipeline expanding into gigawatts. - Manufacturing: expects >10x manufacturing capacity in 2026, with additional 2027 contracted facilities (3x–4x more mentioned). - Liquidity: $8.6B cash/cash equivalents/restricted cash/marketable securities; unused revolver up to $850M.