Wafer-scale chip designer Cerebras Systems has seen its stock price fall by around 20 percent after posting its first earnings report since floating on the stock market just over a month ago.In its debut earnings report, Cerebras downgraded its full-year 2026 earnings gross margin to between 38 – 41 percent, below the 47 percent it reported in its first quarter, with the company forecasting a gross margin in the range of 36 – 38 percent for the second quarter.For the first quarter, the company reported total revenue was $191.3 million, up 92 percent Year-on-Year (YoY), with net losses narrowing from $23.9 million to $14 million. Speaking on the company’s earnings call after the results were published, CFO Bob Komin added that when looking at revenue by type, core cloud and other services revenue reached $79.8 million and grew 167 percent YoY.On the same call, Cerebras CEO Andrew Feldman commented on some of the wider market factors, noting that while memory, CoWaS, and 3nm were major constraints for other chip companies, Cerebras is able to avoid all three. However, he did acknowledge that data center capacity is “at a premium,” describing the situation as a “dog fight.”“Despite this, we've added data centers around the world. We've added data centers across the US and Canada, Europe, including France and the Nordics, and we're in early discussions for data centers in Israel, the UAE, Australia, Singapore, India, and Indonesia.“Feldman added: "We're trying to add data center space as fast as we can. We're engaged with builders throughout North America, data center operators in Europe, and in the Middle East. We have new data centers coming on board in Q3, Q4, and Q1, Q2, Q3, and Q4 of next year, and are adding more. We're in discussions with literally dozens of different data center owner operators."In order to manage some of these constraints, Feldman said that for the rest of 2026, Cerebras has decided to temporarily rent some of its own systems back from an “existing customer” while the company works to “aggressively build out and deploy our own data center capacity.”“The additional cost of renting third-party capacity will depress core cloud and other services margin temporarily from current levels,” he said.Cerebras filed to go public on April 18, 2026, having reported $87.9m in net income on $510m in revenue during 2025. Revenue was up 76 percent from 2024, with the company reporting a $485m net loss at the time.Cerebras went public on May 15, 2026, raising $5.55 billion from the sale of 30 million shares, resulting in the largest IPO for a US tech company since 2019.The company, which had initially priced its shares at $185 – a figure that was already above the expected range – opened at $350 a share. The price then rose to $386, before eventually closing at $311 on May 14, giving it a market cap of about $95 billion.At time of writing, Cerebras’ share price is $182.41.