Cisco lifts revenue outlook as AI networking demand supports sales
First-quarter revenue and adjusted profit topped analyst estimates, while Cisco raised its hyperscaler AI infrastructure revenue forecast to $9 billion.
Cerebras lifts sales outlook and signs Microsoft cloud deal
The chip and cloud company's shares rose more than 17% in extended trading, while quarterly adjusted sales exceeded analysts' expectations.
Cerebras Systems on November 12 raised its adjusted revenue forecast for 2026, setting a range between $940 million and $960 million. The previous range was $880 million to $890 million. Its shares gained more than 17% in extended trading.
CEO Andrew Feldman said Microsoft had signed a cloud agreement with Cerebras, with further details to come next year. The company is also working to deliver computing capacity to OpenAI under an agreement underpinning its remaining performance obligations, which stood at $26.1 billion on September 30.
For the third quarter, Cerebras recorded $230.9 million in adjusted sales, up 70%, versus the $214.70 million average analyst estimate. Adjusted profit was $29.82 million; a year earlier, it recorded a $10.86 million adjusted loss. Analysts had anticipated a loss on an adjusted basis of $38.4 million, according to LSEG data.
Adjusted revenue from cloud and services reached $144.9 million, more than tripling. That revenue reflects the OpenAI agreement. Feldman said OpenAI's business with Cerebras had grown since the second quarter, although insufficient capacity prevented broad deployment of OpenAI's faster Ultrafast service tier.
Oracle has also added Cerebras offerings to its cloud AI chip agreements. Feldman said Oracle data centers would host Cerebras hardware, with an inference service expected to begin operating in summer 2027. He said limited data center availability continued to constrain the industry and changes to US policy could pose additional development challenges.