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Jul 31
C3.ai Q1 2026 Earnings Report
C3 AI reported a disappointing first quarter with declining revenue and a larger net loss, though it initiated major leadership changes to drive a turnaround.
Key Takeaways
C3 AI posted a weak Q1 FY26 with a drop in both revenue and gross profit. Net loss widened, and the company responded with a major reorganization and new CEO appointment.
Total revenue fell to $70.3 million, with subscription revenue making up 86% of it.
C3 AI reported a GAAP net loss of $116.8 million and a non-GAAP EPS of $(0.37).
The company appointed Stephen Ehikian as CEO and completed a restructuring of its sales organization.
Free cash flow was negative at -$34.3 million, reflecting operational challenges.
C3.ai
C3.ai
C3.ai Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
C3 AI guided Q2 FY26 revenue between $72 million and $80 million and withdrew its full-year guidance citing executive transition and organizational restructuring.
Positive Outlook
- Q2 FY26 revenue guidance range of $72M to $80M
- New CEO Stephen Ehikian appointed to lead growth
- Sales and services organization fully restructured
- Continued strong cash balance of over $711M
- Momentum in generative AI and strategic partnerships
Challenges Ahead
- Full-year FY26 guidance withdrawn
- Ongoing high net losses
- Disruption from sales organization changes impacted Q1 performance
- Heavy reliance on stock-based compensation
- Free cash flow remains negative amid restructuring
Revenue & Expenses
Visualization of income flow from segment revenue to net income