C3.ai's revenue fell 25.5% to $52.4 million in the quarter to Jul 31, 2026, and its net loss narrowed to $92.8 million

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, filed its 10-Q, the quarterly report US-listed companies file with the SEC, on Sep 9, 2026, for the fiscal first quarter from May 1 to Jul 31, 2026. Revenue was $52.4 million, down 25.5% from $70.26 million in the same quarter a year earlier. The operating loss was $98.27 million against $124.82 million, and the net loss $92.81 million against $116.77 million, with a diluted loss of $0.60 a share against $0.86.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11

Subscription revenue, which made up 94% of the total, fell 18% to $49.2 million, and professional services revenue fell 68% to $3.2 million. The 10-Q ties the professional services drop to $6.9 million less from prioritized engineering services, work a customer pays for to speed up a feature on the company's roadmap, as fewer features were delivered in the quarter. It also said about 1% of subscription revenue came from new customers, against 32% a year earlier, and defines existing customers as those from whom revenue was recognized in the quarter to Jul 31, 2025.12^,13^,14^,15^,16^,17^,18^,19^,20

The board approved a restructuring plan on Feb 24, 2026, and the 10-Q said the workforce reduction in that plan was completed during the quarter. Sales and marketing expense fell to $41.6 million from $62.5 million, mainly on lower payroll costs of $18.0 million from reduced headcount, and research and development expense fell to $46.5 million from $64.7 million. The quarter's restructuring charge was $0.7 million, primarily vendor consolidation costs.21^,22^,23^,24^,25^,26

Operating activities provided $2.1 million in cash, $35.6 million more than a year earlier, and financing activities provided $72.8 million, which the 10-Q attributes to proceeds from exercises of Class A stock options. At Jul 31, 2026 the company held $136.4 million in cash and cash equivalents and $514.6 million in marketable securities. Its remaining performance obligations, contracted revenue not yet recognized, were $200.0 million, against $203.1 million at Apr 30, 2026.27^,28^,29^,30^,31

In its earnings release of Sep 2, 2026, the company gave a non-GAAP operating loss of $36.2 million, a measure of its own that leaves out restructuring costs, stock-based compensation charges and the employer payroll tax on them. The release also gave revenue guidance of $51.0 million to $55.0 million for the second quarter and $210.0 million to $240.0 million for the full fiscal year. Thomas M. Siebel, whom the board appointed chief executive effective May 8, 2026, with Stephen Ehikian becoming president that day, said in the release that revenue was on plan and that the plan was working.32^,33^,34^,35^,36^,37^,38^,39

The 10-Q also covered a putative securities class action filed on Aug 22, 2025, whose amended complaint alleged misleading statements from February to July 2025 about Siebel's health and its effect on the business. The court granted the motion to dismiss the amended complaint on Jul 14, 2026; the plaintiff filed a second amended complaint on Aug 7, and the company moved to dismiss it on Sep 8.40^,41^,42^,43

Our records hold revenue, operating income, net income and diluted earnings per share for the quarter, and keep one value for each period, so they cannot show whether the year-earlier figures were restated.44^,45