Cerebras’s core gross margin fell to 40.6% in Q2 2026 from 46.5%, while GAAP gross margin collapsed to 14.45% from 44.56% the prior quarter. Free cash flow burn widened to negative $476.7 million in the quarter ended June 30, 2026 from negative $119.6 million in Q1, as Cerebras builds data center capacity for OpenAI and other customers. Core cloud and other services revenue grew 287% year over year to $127.7 million in Q2, pushing total core revenue up 103% to $209.9 million, ahead of the $194.2 million analysts expected, though GAAP reported sales were lower at $180.1 million. CEO Andrew Feldman and CTO Sean Lie sold roughly $200 million combined in Class A shares between August 20 and September 4, cutting Feldman’s direct stake to 16,853 shares. Wall Street’s mean price target rose slightly to $291.64 from $291.09 even as shares fell about 10% since June, still implying 147% upside from the September 18 close. Cerebras ended the quarter with $8.6 billion in cash and an unused $850 million credit facility, and its $25.4 billion backlog is anchored by a $20 billion, 750 megawatt OpenAI agreement.