AI
C3ai Inc
Q1 2026 Report
C3.ai Inc (AI) QQ1 2026 Results – Strategic Reset Under New Leadership with a Large Enterprise AI Opportunity...
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Executive Summary
C3.ai reported QQ1 2025 total revenue of $87.2 million, up 21% year over year, with subscription revenue of $73.5 million (84% of total) rising 20% YoY. Non-GAAP gross profit was $60.9 million, for a gross margin of 70%, while GAAP operating loss totaled $72.6 million and non-GAAP operating loss was $16.6 million, underscoring near-term profitability headwinds from growth investments and pilot-driven revenue mix. Management reiterated a strategic pathway to profitability driven by scale: expected revenue growth to outpace expense growth over time, with free cash flow positive in Q4 FY25 and the full year FY25. The quarter featured robust bookings and a diversified partner strategy, including 40 Google Cloud deals and 51 new partner agreements, with public sector (federal and state/local) bookings signaling material addressable market expansion. The company also emphasized the differentiated C3 AI platform and pre-built generative AI applications, which underpin rapid deployment and measurable enterprise value. Looking ahead, C3.ai maintained FY25 revenue guidance of $370–$395 million and Q2 revenue guidance of $88.6–$93.6 million, signaling confidence in continued demand across enterprise AI use cases, including public sector, energy, manufacturing, and financial services.
Key Performance Indicators
Revenue
87.21M
QoQ: 0.72% | YoY:20.52%
Gross Profit
52.17M
59.81% margin
QoQ: 1.08% | YoY:28.65%
Operating Income
-72.59M
QoQ: 11.81% | YoY:2.03%
Net Income
-62.83M
QoQ: 13.85% | YoY:2.38%
EPS
-0.50
QoQ: 15.25% | YoY:10.71%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $87.2 million in QQ1 2025, up 21% YoY; QoQ growth ~0.7% (from prior quarter). Gross profit: $60.9 million; gross margin 70%. Operating loss: GAAP -$72.6 million; non-GAAP operating loss -$16.6 million. Net income: GAAP net loss -$62.8 million; net income margin -72.0%. EPS (diluted): -$0.50. Weighted average shares: 124.979 million. Subscription revenue: $73.5 million, up 20% YoY (84% of total revenue). Professional services: $13.7 million (16% of revenue). Cash and equivalents/marketab...