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Oct 31
C3.ai Q2 2026 Earnings Report
C3 AI reported Q2 FY26 results with modest revenue growth and continued momentum in federal bookings, despite a net loss.
Key Takeaways
C3 AI delivered a solid Q2 FY26 with strong federal deal activity driving 49% QoQ bookings growth. However, the company continued to operate at a loss while maintaining a healthy cash position.
Total revenue reached $75,147,000, primarily driven by subscription services.
Federal, defense, and aerospace bookings increased 89% YoY, contributing 45% of total bookings.
GAAP net loss was $104,668,000, with a non-GAAP EPS of $(0.25).
The company ended the quarter with $675,034,000 in cash, equivalents, and marketable securities.
C3.ai
C3.ai
C3.ai Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
C3 AI expects Q3 FY26 revenue between $72M and $80M, and full-year revenue between $289.5M and $309.5M, while continuing to operate at a non-GAAP loss.
Positive Outlook
- Strong federal bookings with 89% YoY growth.
- 45% of total bookings came from federal, defense, and aerospace.
- Partner-driven deals accounted for 89% of bookings.
- Microsoft and AWS partnerships drove triple-digit YoY pipeline growth.
- Expanded adoption of C3 Generative AI and Agentic AI solutions across commercial and government clients.
Challenges Ahead
- GAAP net loss remained high at over $100M for the quarter.
- Non-GAAP loss from operations expected between $44M and $52M in Q3.
- Full-year non-GAAP operating loss guidance between $180.5M and $210.5M.
- Revenue declined YoY from $94.3M to $75.1M.
- High stock-based compensation continues to weigh on profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income