C3.ai lost $104.7 million on $75.1 million of revenue in the quarter to Oct 31, 2025

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

C3.ai, an enterprise AI software company, reported revenue of $75.1 million for the quarter ended Oct 31, 2025, down 20% from $94.3 million in the same quarter a year earlier. The net loss was $104.7 million, against $66.0 million a year earlier, and the operating loss was $112.1 million, against $75.3 million. Diluted net loss per share was $0.75, against $0.52. The figures are in the company's Form 10-Q, the quarterly report a US-listed company files with the SEC, filed on Dec 9, 2025, after its earnings release of Dec 3, 2025. Against the quarter ended Jul 31, 2025, when revenue was $70.3 million, the release said revenue rose 7%.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12^,13^,14^,15

Subscription revenue, 93% of the total, fell 13% to $70.2 million from $81.2 million. Professional services revenue fell 63% to $4.9 million from $13.2 million, which the filing tied to a $5.7 million drop in prioritized engineering services and a $2.6 million drop in professional services from fewer service, consulting and training projects. Gross margin, the share of revenue left after the cost of delivering it, was 40%, against 61%, and operating expenses rose 7% to $142.5 million.16^,17^,18^,19^,20^,21^,22

Stephen Ehikian, who had become chief executive on Sep 1, 2025, called it a solid quarter in the release, driven by the Federal business and more high-value deals. The release said bookings across federal, defense and aerospace rose 89% from a year earlier and were 45% of total bookings. The company also launched C3 AI Agentic Process Automation, which, the release said, let users describe workflows in natural language and have the system build and deploy them as AI agents in minutes. It signed 20 initial production deployment agreements, the paid first step of its usage-based pricing, against 36 a year earlier. The 10-Q said the restructuring of the sales and services organization had disrupted financial performance, and that this, with the onboarding of new leadership and the executive chairman's health problems, may have had and might continue to have a negative effect on sales results.23^,24^,25^,26^,27^,28^,29^,30^,31

In the release the company gave guidance for revenue of $72.0 million to $80.0 million for the third quarter of fiscal 2026 and $289.5 million to $309.5 million for the full fiscal year. Revenue for that fiscal year, which ended Apr 30, 2026, was $250.3 million, below the full-year range the release gave, in the annual report the company filed later. Remaining performance obligations, contracted revenue not yet recognized, were $232.5 million at Oct 31, 2025, against $235.1 million at Apr 30, 2025.32^,33^,34^,35^,36

Our records hold this report's revenue, operating income, net income and diluted earnings per share, and the text of its management discussion and notes. They keep one value for each period of a company that files with the SEC, the latest filed, so they cannot show whether the year-earlier figures were restated.37^,38^,39