Cerebras shares fall about 14% on full-year gross margin outlook of 38-41%

Cerebras shares fell about 14% after the first-quarter report, as investors focused on the gross margin outlook rather than revenue growth. The company guided to full-year 2026 adjusted gross margin of 38-41%, below the 47% it reported in Q1. Morgan Stanley raised its price target to $273 from $250, and TD Cowen said the Amazon and OpenAI agreements remain key to the long-term growth case.

• Shares fell about 14% on June 24, per Reuters
• Full-year 2026 adjusted gross margin guided to 38-41%; Q1 was 47%
• Morgan Stanley raised price target to $273 from $250
• TD Cowen: gross margins will be pressured as Cerebras ramps; Amazon and OpenAI deals key