C3.ai, Inc. (AI): Results of Operations and Financial Condition
C3.ai, Inc. (AI) filed an SEC Form 8-K — Results of Operations and Financial Condition. C3 AI Announces Fiscal First Quarter 2027 Results Turnaround on track Bookings increase 73% quarter over quarter REDWOOD CITY, Calif . — September 2, 2026 — C3.ai, Inc. (“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI application software company, today announced f
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue, cash flow, and bookings, marking the first public disclosure of these numbers.
Market read
First‑time earnings disclosure with modest improvement; may trigger short‑term trading interest.
What to watch
Potential cash burn from continued restructuring and reliance on a few large contracts may limit upside.
C3 AI Announces Fiscal First Quarter 2027 Results Turnaround on track Bookings increase 73% quarter over quarter
The Company reported positive operating cash flow and free cash flow, a narrower non-GAAP loss from operations quarter over quarter, and cash, cash equivalents, and marketable securities of $651.1 million. Total revenue, subscription revenue, gross profit, and net loss comparisons with the prior-year quarter were unfavorable, while second-quarter and full-year guidance continued to call for non-GAAP losses from operations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $52,375 | – | – |
| Subscription revenueGAAP | $49,169 | – | – |
| Professional services revenueGAAP | $3,206 | – | – |
| Prioritized engineering services revenueother | $1,760 | – | – |
| Service fees revenueother | $1,446 | – | – |
| Subscription revenue as a percentage of total revenueother | 94% | – | – |
| Total cost of revenueGAAP | $35,706 | – | – |
| Gross profitGAAP | $16,669 | – | – |
| Gross marginGAAP | 32% | – | – |
| Gross profitnon-GAAP | $26,092 | – | – |
| Gross marginnon-GAAP | 50% | – | – |
| Sales and marketing expenseGAAP | $41,611 | – | – |
| Research and development expenseGAAP | $46,549 | – | – |
| General and administrative expenseGAAP | $26,079 | – | – |
| Restructuring expenseGAAP | $698 | – | – |
| Total operating expensesGAAP | $114,937 | – | – |
| GAAP expensesGAAP | $150,643 | – | – |
| Non-GAAP expensesnon-GAAP | $88,534 | – | – |
| Loss from operationsGAAP | $(98,268) | – | – |
| Loss from operationsnon-GAAP | $(36,159) | 33% improvement QoQ | – |
| Interest incomeGAAP | $5,957 | – | – |
| Other (expense) income, netGAAP | $(338) | – | – |
| Loss before provision for income taxesGAAP | $(92,649) | – | – |
| Provision for income taxesGAAP | $163 | – | – |
| Net lossGAAP | $(92,812) | – | – |
| Net lossnon-GAAP | $(30,703) | – | – |
| Net loss per share attributable to Class A and Class B common stockholders, basic and dilutedGAAP | $(0.60) | – | – |
| Net loss per share attributable to Class A and Class B common shareholders, basic and dilutednon-GAAP | $(0.20) | – | – |
| Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and dilutedGAAP | 154,999 | – | – |
| Net cash provided by operating activitiesGAAP | $2,072 | – | – |
| Free cash flownon-GAAP | $2,064 | – | – |
| Stock-based compensation expenseother | $59,233 | – | – |
| Employer payroll tax expense related to employee stock-based compensationother | $2,178 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SubscriptionSubscription revenue constituted 94% of total revenue. | $49,169 | – | – |
| Professional servicesProfessional services revenue includes service fees and prioritized engineering services. | $3,206 | – | – |
Second Quarter Fiscal 2027 and Full Year Fiscal 2027 outlook
- Revenue$51.0 - $55.0 (Second Quarter Fiscal 2027); $210.0 - $240.0 (Full Year Fiscal 2027)
- NoteNon-GAAP loss from operations $(34.5) - $(42.5) (Second Quarter Fiscal 2027)
- NoteNon-GAAP loss from operations $(123.0) - $(155.0) (Full Year Fiscal 2027)
What drove it
- Bookings increased 73% QoQ.
- The Company closed 22 agreements including with Heidelberg Materials, Ford Motor Company, Johnson & Johnson, Holcim, Seaspan, the U.S. Department of Agriculture, the Defense Logistics Agency, the U.S. Department of War and the U.S. Marine Corps, among others.
- The Company stated that it restructured Sales, aligned cash outflows with cash inflows, instituted rigorous expense control, installed experienced leadership, and implemented management discipline across every line of business.
- Non-GAAP loss from operations excluded stock-based compensation expense-related charges, employer payroll tax expense related to employee stock-based compensation, and restructuring expenses.
- Approximately $0.7 million of pre-tax restructuring charges primarily consisted of vendor consolidation costs.
Concerns
- Total revenue was $52,375 compared with $70,261 in the prior-year quarter.
- Subscription revenue was $49,169 compared with $60,301 in the prior-year quarter, while professional services revenue was $3,206 compared with $9,960.
- GAAP gross margin was 32% compared with 38%, and non-GAAP gross margin was 50% compared with 52%.
- The Company reported a GAAP net loss of $(92,812) and a non-GAAP net loss of $(30,703).
- Second-quarter fiscal 2027 guidance calls for non-GAAP loss from operations of $(34.5) - $(42.5), and full-year fiscal 2027 guidance calls for non-GAAP loss from operations of $(123.0) - $(155.0).
- The Company identified risks including its history of losses, dependence on a limited number of existing customers, customer retention, sales and services productivity, sales-cycle length and unpredictability, and the time and expense required for sales efforts.
What to watch
- Second Quarter Fiscal 2027 total revenue guidance of $51.0 - $55.0.
- Full Year Fiscal 2027 total revenue guidance of $210.0 - $240.0.
- Second Quarter Fiscal 2027 non-GAAP loss from operations guidance of $(34.5) - $(42.5).
- Full Year Fiscal 2027 non-GAAP loss from operations guidance of $(123.0) - $(155.0).
- Bookings, which increased 73% QoQ in the fiscal first quarter.
- The productivity of the restructured global sales and services organization and the Company’s stated ability to grow revenue, generate cash, attain non-GAAP profitability, maintain technology leadership, and increase customer satisfaction.
Balance sheet and cash flow
- Cash and cash equivalents were $136,435 as of July 31, 2026, compared with $66,197 as of April 30, 2026.
- Marketable securities were $514,634 as of July 31, 2026, compared with $509,252 as of April 30, 2026.
- Cash, cash equivalents, and marketable securities was $651.1 million.
- Total assets were $874,804 as of July 31, 2026, compared with $816,273 as of April 30, 2026.
- Total liabilities were $179,908 as of July 31, 2026, compared with $162,522 as of April 30, 2026.
- Total stockholders’ equity was $694,896 as of July 31, 2026, compared with $653,751 as of April 30, 2026.
- Deferred revenue, current was $52,568 as of July 31, 2026, compared with $34,861 as of April 30, 2026.
- Deferred revenue, non-current was $1,106 as of July 31, 2026, compared with $1,560 as of April 30, 2026.
- Purchases of property and equipment were $(8), compared with $(760).
- Net cash used in investing activities was $(4,646), compared with $(51,171).
- Proceeds from exercise of Class A common stock options were $72,812, compared with $1,289.
- Net cash provided by financing activities was $72,812, compared with $1,289.
- Net increase (decrease) in cash, cash equivalents and restricted cash was $70,238, compared with $(83,417).
- Cash, cash equivalents and restricted cash at end of period was $149,001, compared with $93,507.
Analysis
C3.ai reported fiscal first-quarter 2027 total revenue of $52,375, compared with $70,261 in the prior-year quarter. Subscription revenue was $49,169, compared with $60,301, and represented 94% of total revenue. Professional services revenue was $3,206, compared with $9,960, including prioritized engineering services revenue of $1,760 compared with $8,663 and service fees of $1,446 compared with $1,297. Management highlighted bookings growth of 73% QoQ and 22 closed agreements.
Gross profit was $16,669 on a GAAP basis and $26,092 on a non-GAAP basis, compared with $26,444 and $36,320, respectively, in the prior-year quarter. GAAP gross margin was 32%, compared with 38%, while non-GAAP gross margin was 50%, compared with 52%. Total operating expenses were $114,937, compared with $151,263, and non-GAAP expenses were $88,534, compared with $128,085. The expense base included $59,233 of stock-based compensation expense, $2,178 of employer payroll tax expense related to employee stock-based compensation, and $698 of restructuring expense.
GAAP loss from operations was $(98,268), compared with $(124,819), while non-GAAP loss from operations was $(36,159), compared with $(57,824). The Company characterized the non-GAAP operating loss as a 33% improvement QoQ. GAAP net loss was $(92,812), or $(0.60) per basic and diluted share, compared with $(116,769), or $(0.86) per share. Non-GAAP net loss was $(30,703), or $(0.20) per share, compared with $(49,774), or $(0.37) per share.
Cash generation turned positive in the quarter. Net cash provided by operating activities was $2,072, compared with net cash used in operating activities of $(33,535), and free cash flow was $2,064, compared with $(34,295). Cash and cash equivalents were $136,435 and marketable securities were $514,634 as of July 31, 2026. The balance of cash, cash equivalents, and marketable securities was $651.1 million. Proceeds from exercise of Class A common stock options were $72,812, and net cash provided by financing activities was $72,812.
For the second quarter of fiscal 2027, C3.ai guided total revenue to $51.0 - $55.0 and non-GAAP loss from operations to $(34.5) - $(42.5). Full-year fiscal 2027 guidance calls for total revenue of $210.0 - $240.0 and non-GAAP loss from operations of $(123.0) - $(155.0). The release did not provide forward guidance for gross margin, operating expenses, or tax rate, and stated that a reconciliation of forward-looking non-GAAP guidance to corresponding GAAP measures is unavailable without unreasonable effort.
Management, verbatim
Revenue was $52.4 million, on plan. Free cash flow was positive $2.1 million. Non-GAAP operating loss was $36.2 million, a 33% improvement QoQ. Bookings increased 73% QoQ. Cash balance was $651.1 million, up $76 million QoQ. The Company has done exactly what a disciplined, focused turnaround should do. We restructured Sales. We aligned cash outflows with cash inflows. We instituted rigorous expense control. We installed experienced leadership across the board, and we implemented rigorous management discipline across every line of business. Revenue has stabilized, free cash flow is positive, operating loss has narrowed, and Forrester Research named C3 AI a leader in Enterprise AI. The plan is working, we are on track with laser-like management discipline to grow revenue, generate cash, attain non-GAAP profitability, maintain technology leadership, and increase customer satisfaction.
Thomas M. Siebel, Chairman and Chief Executive Officer, C3 AI
Not in the filing
stated, not guessed- Previous-period outlook was not provided.
- Capital return information, including share repurchases and dividends, was not reported.
- Debt balances were not reported.
- Second-quarter fiscal 2027 and full-year fiscal 2027 guidance for gross margin, operating expenses, and tax rate was not reported.
- Prior-quarter total revenue, subscription revenue, professional services revenue, GAAP gross profit, GAAP gross margin, non-GAAP gross profit, non-GAAP gross margin, GAAP loss from operations, net loss, and EPS were not reported on their respective line items.
- Percentage year-over-year changes were not reported for revenue, segment revenue, gross profit, operating expenses, operating loss, net loss, EPS, operating cash flow, or free cash flow.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
C3.ai filed an SEC Form 8‑K reporting its Q1 FY2027 earnings and outlook.
Ticker impact
C3.ai disclosed its fiscal Q1 2027 results, reporting $52.4M revenue, positive free cash flow and 73% QoQ bookings growth, and provided guidance for Q2 and full year.
Potential modest upside of 3‑5% as investors price the turnaround narrative.
Guidance is modest but shows improvement; the market may reward the turnaround, though the company remains small and volatile.
Market effects
Positive signal for the enterprise AI software sector, suggesting demand recovery.
Limited to U.S. tech investors; no broader regional effect.
Minor, as C3.ai is a niche player with limited global market weight.
Counterpoint
The guidance remains modest and the company is still loss‑making; a pull‑back could occur if growth stalls.
Key entities
- companyC3.ai, Inc.
Enterprise AI application software provider.
- executiveThomas M. Siebel
Chairman and CEO of C3.ai.
