Cerebras Systems raised its 2026 revenue and margin outlook, but its shares fell about 16% after hours after quarterly sales missed estimates. In the latest quarter, revenue rose 74% to $180.11 million, below analysts’ $194.23 million estimate. Cloud revenue roughly quadrupled to $126 million, while hardware revenue slipped to $54.1 million. Management lifted its 2026 adjusted revenue outlook to $880-$890 million and guided to a 41%-43% adjusted gross margin, above the 35.89% analyst average compiled by LSEG, while saying supply constraints are easing. CEO Andrew Feldman told Reuters its wafer-scale design puts memory on the chip, reducing the impact of high-bandwidth memory price increases, and that using TSMC’s 5-nanometer process avoids bottlenecks at newer manufacturing nodes. The $180.11 million result versus the $194.23 million estimate drew more attention than the higher 2026 outlook, raising stakes for upcoming quarters. Cerebras has a $20 billion multiyear deal to provide AI compute to OpenAI and $25.4 billion in remaining performance obligations, so investors are likely to treat each report as a real-time check on the ramp.