Cerebras unveils CS-4, lifts fiscal 2026 outlook

Cerebras Systems Inc. (NASDAQ: CBRS ) on Tuesday unveiled the CS-4, a rack-scale AI system powered by three of its Wafer Scale Engine-3 Turbo chips and designed to speed up response generation from AI models.

CEO Andrew Feldman said Cerebras expects to deliver 600 megawatts of computing capacity by the end of 2027.

He also expects performance to improve fourfold and throughput to increase 20 times by then.

Analyst View Following the news, Needham analyst Quinn Bolton reiterated a Buy rating and maintained a price forecast of $300.

The analyst noted that CS-4 also delivers a 10x improvement in throughput per watt compared with CS-3 and is powered by three WSE-3 Turbo chips, which provide twice the PFLOP performance of the existing WSE-3 chip.

CS-4 is expected to begin shipping this quarter, while CS-5 is planned for 2027, added the analyst.

Bolton wrote that the new "backpack" subsystem is designed to enable faster and more cost-efficient deployment at scale by separating the power supply from the compute system and allowing the power supply to attach vertically to the power array.

The analyst said that Cerebras redesigned its compute subsystem with a rear-mounted "backpack" that vertically connects to the power array.

The self-contained Wafer Scale Backpack integrated power conversion, direct liquid cooling, high-speed I/O and control electronics around the wafer.

By separating compute from the power supply, the design simplified manufacturing and, according to Cerebras, cut deployment time from days to hours.

It also used 50% fewer components and 60% more automated manufacturing than the prior-generation system, supporting lower-cost and more scalable production, added the analyst.

Recent Earnings Snapshot Cerebras reported a second-quarter adjusted loss of 4.5 cents per share, narrower than the analyst estimate for a loss of 17 cents per share.

Meanwhile, sales of $180.11 million fell short of the $194.20 million consensus estimate.

Core revenue reached a record $209.9 million, up 103% year over year and above the company’s guidance.

Core gross and operating margins also exceeded expectations.

For the third quarter of 2026, Cerebras expects core revenue of $214 million to $216 million, a gross margin of 38% to 40% and an operating margin of negative 25% to negative 23%.

Cerebras raised its fiscal 2026 outlook to revenue of $880 million to $890 million, a gross margin of 41% to 43% and an operating margin of negative 19% to negative 17%.

CBRS Stock Price Activity: Cerebras Systems shares were down 4.25% at $210.66 at the time of publication Wednesday.

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