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 delivered solid top-line growth in Q3 2025, underpinned by a rapidly expanding partner ecosystem and meaningful momentum in Generative AI and Agentic AI deployments. Total revenue rose 26% year over year to $98.8 million, with subscription revenue up 22% to $85.7 million and representing 87% of total revenue. Non-GAAP gross margins improved to 69% as the mix shifted toward high-margin software and away from lower-margin pilots, while non-GAAP operating loss narrowed to $23.1 million, reflecting disciplined expense management and targeted investments in sales force and partnerships. GAAP metrics remained negative, with operating income of approximately -$87.6 million and net income of about -$80.2 million, underscoring the company’s ongoing transition to scale and profitability. Management emphasizes the acceleration of growth through strategic alliances (Microsoft, AWS, McKinsey QuantumBlack), a expanding pipeline, and rapid deployment capabilities across industries, while guiding to Q4 revenue of $103.6–$113.6 million and a full-year non-GAAP loss from operations in a $87–$97 million range. This suggests a near-term profitability path contingent on continued ecosystem leverage, higher pilot-to-subscription conversion, and macro stability.
Key Performance Indicators
Revenue
98.78M
QoQ: 4.71% | YoY:26.00%
Gross Profit
58.35M
59.07% margin
QoQ: 0.88% | YoY:28.84%
Operating Income
-87.59M
QoQ: -16.33% | YoY:-6.10%
Net Income
-80.20M
QoQ: -21.57% | YoY:-10.42%
EPS
-0.62
QoQ: -19.23% | YoY:-3.33%
Revenue Trend
Margin Analysis
Key Insights
Revenue and mix: Q3 2025 total revenue $98.8M, up 26% YoY; subscription revenue $85.7M, up 22% YoY, comprising 87% of total revenue. Demonstration licenses revenue $28.6M in the quarter. GAAP gross profit $58.35M (gross margin 59.1%), non-GAAP gross profit $68.2M (gross margin ~69%). Operating: GAAP operating loss $87.6M; non-GAAP operating loss $23.1M. Net income: GAAP net loss ~$80.2M; non-GAAP net loss per share $0.12. Cash flow and liquidity: net cash provided by/used in operating activities...