Cerebras Systems Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Cerebras Systems Q2 FY2026 Earnings Summary

Overall Context: Strong quarter with successful IPO completion. Record core revenue and beat on all guidance metrics (core revenue, gross margin, operating margin). 2026 positioned as foundation year for >3x core revenue growth in 2027 and continued multiples thereafter, supported by $25.4B remaining performance obligations (RPO). Focus on fast inference demand, capacity expansion, and new markets like security.

Financial Performance (vs. Q2 FY2025 unless noted)

  • Core Revenue: $209.9M (+103% YoY). Core cloud/services: $127.7M (+287% YoY). Core hardware: $82.1M (+17% YoY).
  • Core Gross Margin: 40.6% (+940 bps YoY). Core cloud GM: 41.8% (+1,600 bps). Core hardware GM: 38.8% (+510 bps). Sequential dip due to temporary system rentals; expected low point in Q3 before recovery.
  • Core Operating Margin: -16% (improved ~2,600 bps from -42% YoY) despite revenue doubling and higher investments.
  • Balance Sheet: >$8.6B in cash, equivalents, restricted cash, and securities; $850M unused revolver. Strong liquidity post-IPO.
  • Other: Manufacturing capacity up 4x vs. H1 2025; targeting >10x for full 2026.

Key Operational Progress

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Operator: Good afternoon, and welcome to the Cerebras Systems Second Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] Please note that today's call is being recorded. I will now turn the call over to Sean Dorsey, Head of Investor Relations. Please go ahead. Sean Dorsey: Thank you, operator. Good afternoon, everyone, and welcome to Cerebras Systems Q2 2026 Earnings Call. Earlier today, we issued our press release and posted our supplemental earnings presentation to the Investor Relations section of our website. A replay of this webcast will also be available on our Investor Relations website following the call. Joining me today are Andrew Feldman, our Co-Founder, Chief Executive Officer and President; and Bob Komin, our Chief Financial Officer. Before we begin, I would like to remind everyone that today's discussion will include forward-looking statements under the safe harbor of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding our future financial performance, business strategy, market opportunity, customer demand, product road map, technology leadership, supply chain, operating model and outlook for Q3 and full year 2026. Forward-looking statements are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks are described in our SEC filings, i

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