C3.ai (AI) AI Q4 Financial Results Summary
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C3 AI (AI) Q4 2026: Revenue Decline Continues — Disappointing Quarter for Shareholders
C3 AI, Inc. (NYSE: AI) reported its fiscal fourth quarter results for 2026, revealing a significant decline in revenue compared to the previous year. Total revenue for the quarter was $51.6 million, down $57.1 million or -52.5% from $108.7 million in Q4 2025. This decline reflects ongoing challenges in sales performance, as highlighted by CEO Thomas M. Siebel, who described the recent sales performance as "entirely unacceptable."
Key Financial Metrics
- Total Revenue: $51.6 million (down $57.1 million or -52.5% YoY)
- Subscription Revenue: $48.4 million (down from $87.3 million in Q4 2025)
- GAAP Gross Profit: $11.3 million (down from $67.5 million in Q4 2025)
- GAAP Net Loss per Share: $(0.79) (compared to $(0.60) in Q4 2025)
- Cash, Cash Equivalents, and Marketable Securities: $575.4 million as of April 30, 2026
Analyst Opinion
This quarter is disappointing for shareholders, primarily due to the substantial revenue decline and the continued net losses. The drop in subscription revenue, which constitutes 94% of total revenue, raises concerns about the company's ability to retain and attract customers in a competitive market. The reported GAAP net loss per share of $(0.79) further underscores the financial difficulties C3 AI is facing.
Additional Highlights
- Non-GAAP Gross Profit: $19.3 million, representing a 37% non-GAAP gross margin.
- Full Fiscal Year 2026 Total Revenue: $250.3 million, down from $389.1 million in FY 2025.
- Full Fiscal Year GAAP Net Loss per Share: $(3.35), compared to $(2.24) in FY 2025.
- Cash Balance: Increased to $673 million following the purchase of 6.17 million shares by CEO Thomas Siebel at $11.16 per share.
Guidance and Future Outlook
For the first quarter of fiscal 2027, C3 AI has provided guidance for total revenue between $50.0 million and $54.0 million, indicating a continued struggle to regain momentum. The full-year guidance for fiscal 2027 projects total revenue between $210.0 million and $240.0 million, which suggests a modest recovery but still reflects a significant decline from previous years.
Forward Catalyst
Investors should closely monitor the company's restructuring efforts and the impact of new executive leadership under Thomas Siebel. The effectiveness of these strategies in reversing the current sales trajectory will be critical in the upcoming quarters. Additionally, the market's response to the company's guidance for fiscal 2027 will be a key indicator of investor sentiment moving forward.
In summary, C3 AI's Q4 2026 results reflect ongoing challenges that have led to a disappointing quarter for shareholders. The focus on restructuring and leadership changes may provide a path forward, but the company must demonstrate tangible improvements in revenue and profitability to regain investor confidence.
C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Note: All amounts are in thousands.
| Three Months Ended April 30, | Fiscal Year Ended April 30, | ||||
|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | ||
| Revenue | Subscription | $48,384 | $87,333 | $227,090 | $327,630 |
| Professional services | $3,216 | $21,390 | $23,178 | $61,426 | |
| Total revenue | $51,600 | $108,723 | $250,268 | $389,056 | |
| Cost of revenue | Subscription | $39,162 | $37,712 | $166,291 | $143,841 |
| Professional services | $1,115 | $3,501 | $6,595 | $9,352 | |
| Total cost of revenue | $40,277 | $41,213 | $172,886 | $153,193 | |
| Gross profit | $11,323 | $67,510 | $77,382 | $235,863 | |
| Operating expenses | Sales and marketing | $49,342 | $70,690 | $237,369 | $239,659 |
| Research and development | $47,261 | $58,393 | $229,087 | $226,391 | |
| General and administration | $25,050 | $27,392 | $98,596 | $94,237 | |
| Restructuring | $10,828 | — | $10,828 | — | |
| Total operating expenses | $132,481 | $156,475 | $575,880 | $560,287 | |
| Loss from operations | -$121,158 | -$88,965 | -$498,498 | -$324,424 | |
| Interest income | $5,989 | $7,949 | $28,447 | $36,189 | |
| Other (expense) income, net | -$290 | $1,425 | $504 | $509 | |
| Loss before provision for income taxes | -$115,459 | -$79,591 | -$469,547 | -$287,726 | |
| Provision for income taxes | $111 | $111 | $822 | $976 | |
| Net loss | -$115,570 | -$79,702 | -$470,369 | -$288,702 | |
| Net loss per share attributable to Class A and Class B common stockholders basic and diluted | -$0.79 | -$0.60 | -$3.35 | -$2.24 | |
| Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders basic and diluted | 146,224 | 133,233 | 140,513 | 129,089 |
C3.AI, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
Note: All amounts are in thousands.
| April 30, 2026 | April 30, 2025 | ||
|---|---|---|---|
| Assets | Current assets | Cash and cash equivalents $66,197 | $164,358 |
| Marketable securities | $509,252 | $578,330 | |
| Accounts receivable, net of allowance of $1,065 and $877 as of April 30, 2026 and April 30, 2025, respectively | $100,548 | $137,226 | |
| Prepaid expenses and other current assets | $31,965 | $24,338 | |
| Total current assets | $707,962 | $904,252 | |
| Property and equipment, net | $66,904 | $79,298 | |
| Goodwill | $625 | $625 | |
| Other assets, non-current | $40,782 | $41,707 | |
| Total assets | $816,273 | $1,025,882 | |
| Liabilities and stockholders’ equity | Current liabilities | Accounts payable $5,509 | $15,160 |
| Accrued compensation and employee benefits | $48,560 | $53,868 | |
| Deferred revenue, current | $34,861 | $36,561 | |
| Accrued and other current liabilities | $17,641 | $26,295 | |
| Total current liabilities | $106,571 | $131,884 | |
| Deferred revenue, non-current | $1,560 | — | |
| Other long-term liabilities | $54,391 | $55,695 | |
| Total liabilities | $162,522 | $187,579 | |
| Commitments and contingencies | Stockholders’ equity | Class A common stock $145 | $130 |
| Class B common stock | $3 | $3 | |
| Additional paid-in capital | $2,502,657 | $2,216,284 | |
| Accumulated other comprehensive (loss) income | -$50 | $521 | |
| Accumulated deficit | -$1,849,004 | -$1,378,635 | |
| Total stockholders’ equity | $653,751 | $838,303 | |
| Total liabilities and stockholders’ equity | $816,273 | $1,025,882 |
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