On August 12, 2026, both Cisco and Cerebras Systems reported quarterly earnings that exceeded analyst expectations, yet both companies saw their stock prices decline in extended trading following the announcements [1][2]. Cisco reported adjusted earnings per share of $1.22, surpassing the expected $1.17, and revenue of $17.25 billion, above the $16.82 billion consensus estimate. The company also issued a revenue forecast for the upcoming quarter of $18 billion to $18.2 billion, significantly higher than the $16.8 billion average analyst estimate, and provided strong full-year guidance [1]. Despite these positive results, Cisco shares dropped after the report. The company highlighted that hyperscalers placed $4 billion in infrastructure orders during the quarter, bringing the fiscal year total to $9.3 billion, and expects this figure to nearly double to $7.5 billion in fiscal 2027. Revenue increased 18% year-over-year, and net income rose 51% to $3.9 billion [1].
Similarly, Cerebras Systems, in its second earnings report since its May IPO, raised its full-year guidance but saw its stock fall about 14% in after-hours trading [2]. The company reported second-quarter core revenue of $210 million and a loss per share of $2.89. Cerebras now expects core revenue of $214 to $216 million for the current quarter, above the $212.6 million analyst estimate, and raised its full-year core revenue outlook to $880-$890 million from a prior range of $855-$865 million [2]. Despite a net loss of $450.5 million, largely due to $386.6 million in stock-compensation costs, CEO Andrew Feldman emphasized strong AI demand and projected that core gross margin would expand to 38%-40% in the current quarter. Cerebras also reported $25.4 billion in remaining performance obligations and expects revenue to triple in the next fiscal year [2].
Both companies are positioning themselves to benefit from the ongoing AI boom. Cisco noted that its numbers suggest it is starting to play a bigger role in AI infrastructure, with hyperscaler orders and revenue expected to grow significantly [1]. Cerebras, meanwhile, is challenging Nvidia in the AI chip market, particularly for low-latency inference tasks, and has announced partnerships with AMD and OpenAI, with new products and cloud offerings in the pipeline [2].
Despite the strong financial results and optimistic forward guidance from both Cisco and Cerebras, the market reaction was negative, with both stocks declining after their respective earnings reports [1][2].
CONCLUSION
Both Cisco and Cerebras delivered earnings and guidance that exceeded analyst expectations, highlighting strong demand in the AI sector. However, investor reactions were negative, with both stocks falling in extended trading despite the upbeat outlooks. The results underscore high market expectations and the volatility surrounding AI hardware stocks.