10-K · June 23, 2026
C3.ai reported a significant decline in revenue for the fiscal year ended April 30, 2026, with total revenue at $250.3 million, a 35.7% decrease from the previous year. The drop was largely driven by a substantial fall…
Earnings analysis · 10-Q
AI earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
The quarter showed modest positive signals, including a $52.375 million revenue beat, positive free cash flow of $2.064 million, improved gross margin of 21.9%, and a year-over-year reduction in net loss to $92.8…
Read full summary
The quarter showed modest positive signals, including a $52.375 million revenue beat, positive free cash flow of $2.064 million, improved gross margin of 21.9%, and a year-over-year reduction in net loss to $92.8 million. However, revenue remained approximately $52 million and GAAP EPS was $(0.60), while operating margin was negative 234.8%, indicating severe ongoing operating pressure. Liquidity improved to $651.1 million, but the company continues to expect losses, faces restructuring and customer-renewal execution risks, and has increasing regulatory and international exposure.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.6
What stood out
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Revenue beat, but GAAP loss remained substantial
Revenue was $52.375 million, approximately 0.8% above the $51.963 million consensus estimate, but declined from approximately $53 million in the prior quarter. GAAP EPS was $(0.60), versus the $(0.33) estimate.
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Free cash flow turned positive
Free cash flow was positive at $2.064 million, a meaningful improvement from the negative $55 million shown for the prior period in the supplied quarterly history.
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Sequential margin improvement
Gross margin improved to 21.9% from 17.3% in the preceding quarter, a 4.6 percentage-point increase, while operating margin improved to negative 234.8% from negative 263.6%.
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Net loss narrowed year over year
The company reported a net loss of $92.8 million for the three months ended July 31, 2026, compared with $116.8 million in the prior-year quarter, an improvement of $24.0 million or approximately 20.5%.
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Liquidity increased during the quarter
Cash, cash equivalents, and marketable securities increased to $651.1 million as of July 31, 2026, from $575.4 million as of April 30, 2026, an increase of $75.7 million.
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No reported control deficiencies
Management reported that disclosure controls and procedures were effective at the reasonable assurance level as of July 31, 2026, and identified no material changes to internal control over financial reporting during the period.
What to watch
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Persistent losses and accumulated deficit
The company has generated net losses in every period since founding, including a $92.8 million loss for the quarter, and had an accumulated deficit of $1.9 billion as of July 31, 2026. Management expects net losses to continue for the foreseeable future.
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Rising foreign-exchange exposure
Foreign-currency exposure increased: 9% of revenue and 10% of expenses were denominated in currencies other than U.S. dollars for the three months ended July 31, 2026, compared with 6% for both measures in the prior-year quarter. The filing states that a hypothetical 10% change in foreign exchange rates may materially affect the financial statements.
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AI regulation creates compliance exposure
The EU AI Act became fully applicable on August 2, 2026. Non-compliance may result in administrative fines of up to €35 million or 7% of worldwide annual turnover, whichever is higher, depending on the violation.
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International expansion adds execution risk
The company disclosed that 19% of revenue for the three months ended July 31, 2026 was generated from customers outside North America and that it had ten international sales locations, increasing exposure to international regulatory, currency, and geopolitical risks.
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Future capital needs and dilution risk
The company’s liquidity risk remains relevant despite $651.1 million of cash, cash equivalents, and marketable securities: management states that additional financing may be required, while future equity issuance could dilute existing holders and debt financing could impose restrictive covenants.
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Restructuring execution risk
The restructuring plan approved on February 24, 2026 may be disruptive, may cost more than forecast, and may produce less savings than forecast; the company also identifies possible employee attrition and loss of accumulated knowledge during the transition.
Management's outlook
The filing does not provide explicit EPS guidance. Quantitative outlook disclosed in the associated earnings release includes Q2 FY2027 revenue of $51.0 million-$55.0 million and FY2027 revenue of $210.0 million-$240.0 million; non-GAAP operating loss guidance was $(34.5) million-$(42.5) million for Q2 and $(123.0) million-$(155.0) million for FY2027. Prior outlook was not disclosed, so direction cannot be determined.
Earlier filings 4
10-Q · March 11, 2026
C3.ai reported Q3 revenue of $53.26M and GAAP net loss per share of $(0.94). Revenue and gross profit fell sharply versus the prior-year quarter (revenue down from $98.78M; gross profit down from $58.35M), while…
10-K · June 23, 2025
The 10-K reiterates C3.ai’s strategy of selling an integrated Enterprise AI stack — the C3 Agentic AI Platform, C3 AI Applications and C3 Generative AI — built on a “patented model-driven architecture” that the company…
10-Q · December 10, 2024
C3.ai reported revenue of $94,338 (in thousands) for the three months ended October 31, 2024, up $21,109 (28.8%) versus $73,229 in the prior-year period, with gross profit rising to $57,840 (61.3% margin). Despite…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.