C3.ai's revenue fell 46% to $53.3 million in the quarter to Jan 31, 2026

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 $53.3 million for the quarter ended Jan 31, 2026, down 46% from $98.8 million in the same quarter a year earlier. The net loss was $133.4 million, against $80.2 million a year earlier, and the operating loss was $140.4 million, against $87.6 million. Diluted net loss per share was $0.94, against $0.62. The figures are in the company's Form 10-Q, the quarterly report a US-listed company files with the SEC, filed on Mar 11, 2026, after its earnings release of Feb 25, 2026.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12^,13

Subscription revenue, 90% of the total, fell 44% to $48.2 million from $85.7 million. The notes to the 10-Q put revenue from software licenses sold without maintenance and support, which is recognized when control of the software passes to the customer, at zero for the quarter, against $28.6 million a year earlier. Professional services revenue fell 61% to $5.1 million from $13.1 million, which the filing tied to fewer service, consulting and training projects and less prioritized engineering work. Gross margin, the share of revenue left after the cost of delivering it, was 17%, against 59%, and operating expenses rose 3% to $149.6 million.14^,15^,16^,17^,18^,19^,20^,21^,22

After the quarter ended, on Feb 24, 2026, the board approved a restructuring plan that included a 26% cut in the global workforce, which the 10-Q said had been substantially completed. The plan also aimed at a cut of about 30% in annualized non-employee costs by the second half of fiscal year 2027. The company estimated pre-tax restructuring charges of $10.0 million to $12.0 million for the fourth quarter of fiscal year 2026, covering severance, other termination benefits and stock-based compensation. In its release, the company said the plan was expected to bring annual cost savings and lower cash burn of about $135 million in non-GAAP operating expenses, a measure it defines itself. Stephen Ehikian, named as chief executive in the release, said the company had restructured and flattened its sales organization and that the changes it had made were substantially complete.23^,24^,25^,26^,27^,28^,29

The 10-Q said research and development resources were concentrated on AI and automation solutions for asset performance, supply chain and procurement, aimed at the energy, manufacturing, healthcare and public sectors. The company signed 14 initial production deployment agreements, the usual way it starts a customer, against 50 a year earlier. The 10-Q said the company had signed fewer such agreements in fiscal year 2026 than in fiscal year 2025, reflecting a focus on engagements more likely to convert into production contracts.30^,31^,32^,33

The release gave revenue guidance of $48.0 million to $52.0 million for the fourth quarter and $246.7 million to $250.7 million for the full year, both for fiscal 2026. Revenue for that fiscal year, which ended Apr 30, 2026, was $250.3 million, inside the full-year range the release gave, in the annual report the company filed later.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