Earnings live updates: Cisco and Cerebras earnings point to strong AI demand, but their stocks are falling anyway

August 12, 2026 - 21:50

The second quarter earnings season is beginning to wind down, with nearly 90% of S&P 500 companies having already reported. But the final stretch is proving that even good news can get punished. On Wednesday evening, both Cisco Systems and Cerebras Systems posted results that showed robust demand for artificial intelligence infrastructure, yet their stocks fell in after-hours trading.

Cisco, the networking giant, beat analyst expectations on both revenue and profit, driven largely by a surge in orders for its AI-focused data center switches and security products. Management also raised its full-year guidance, citing a strong pipeline of enterprise deals. Cerebras, the AI chip startup that competes with Nvidia, reported a sharp jump in revenue, with its wafer-scale processors seeing increased adoption by cloud providers and research institutions. The company also announced a major new customer win, which it said would contribute meaningfully to next year's sales.

So why the negative reaction? In both cases, investors appeared to focus on the fine print. Cisco's guidance for the current quarter came in slightly below the most optimistic Wall Street forecasts, even though it was above the consensus. Cerebras, meanwhile, posted wider losses than expected, as it ramps up spending on manufacturing and software development. The market has become unforgiving for any perceived shortfall, even when the underlying business looks healthy.

The broader takeaway is that AI demand remains strong, but the bar for earnings beats has been set extremely high. Companies that merely meet expectations or offer cautious outlooks are seeing their shares sold off, regardless of the fundamental strength. For Cisco, the challenge is proving it can sustain its AI momentum beyond the initial wave of infrastructure buildout. For Cerebras, the question is whether it can turn its technical wins into durable profitability while competing against a dominant rival.

Both companies tried to reassure investors on their conference calls, emphasizing long-term contracts and expanding customer bases. But for now, the market is sending a clear message: good is not good enough.