{"success":true,"data":{"pressRelease":{"id":"134332","rtpr_id":"nBw7gcJq5a","ticker":"AI","exchange":"NYSE","all_tickers":["AI"],"title":"C3 AI Announces Fiscal First Quarter 2027 Results","author":"Business Wire","published_at":"2026-09-02T20:05:00.233Z","article_body":"C3 AI Announces Fiscal First Quarter 2027 Results\n\nTurnaround on track\n\nBookings increase 73% quarter over quarter\n\nC3.ai, Inc.\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fc3.ai%2F&esheet=54596885&newsitemid=20260902624813&lan=en-US&anchor=C3.ai%2C+Inc.&index=1&md5=945dc26c1c464dd8567765aaa19caf9f)\n(“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI\napplication software company, today announced financial results for its fiscal\nfirst quarter ended July 31, 2026.\n\n“Revenue was $52.4 million, on plan. Free cash flow was positive $2.1\nmillion. Non-GAAP operating loss was $36.2 million, a 33% improvement QoQ.\nBookings increased 73% QoQ. Cash balance was $651.1 million, up $76 million\nQoQ. The Company has done exactly what a disciplined, focused turnaround\nshould do. We restructured Sales. We aligned cash outflows with cash inflows.\nWe instituted rigorous expense control. We installed experienced leadership\nacross the board, and we implemented rigorous management discipline across\nevery line of business.\n\nRevenue has stabilized, free cash flow is positive, operating loss has\nnarrowed, and Forrester Research named C3 AI a leader in Enterprise AI. The\nplan is working, we are on track with laser-like management discipline to grow\nrevenue, generate cash, attain non-GAAP profitability, maintain technology\nleadership, and increase customer satisfaction,” said Thomas M. Siebel,\nChairman and Chief Executive Officer, C3 AI.\n\nThe Company closed 22 agreements including with Heidelberg Materials, Ford\nMotor Company, Johnson & Johnson, Holcim, Seaspan, the U.S. Department of\nAgriculture, the Defense Logistics Agency, the U.S. Department of War and the\nU.S. Marine Corps, among others.\n\nFiscal First Quarter 2027 Financial Highlights:\n\n\n * Total Revenue was $52.4 million.\n\n * Subscription Revenue was $49.2 million. Subscription revenue constituted 94%\nof total revenue.\n\n * GAAP gross profit was $16.7 million, representing a 32% gross margin. Non-GAAP\ngross profit was $26.1 million, representing a 50% non-GAAP gross margin.\n\n * GAAP net loss per share was $(0.60). Non-GAAP net loss per share was $(0.20).\n\n * Net cash provided by operating activities was $2.1 million. Free Cash Flow was\n$2.1 million.\n\n * Cash, cash equivalents, and marketable securities was $651.1 million.\n\nFinancial Outlook:\n\nThe Company’s guidance includes GAAP and non-GAAP financial measures.\n\nThe following table summarizes C3 AI’s guidance for the second quarter of\nfiscal 2027 and full-year fiscal 2027:\n (in millions) Second Quarter Fiscal 2027   Full Year Fiscal 2027 \n \nGuidance \nGuidance \n Total revenue $51.0 - $55.0   $210.0 - $240.0 \n Non-GAAP loss from operations $(34.5) - $(42.5)   $(123.0) - $(155.0) \n\n\nA reconciliation of non-GAAP guidance measures to corresponding GAAP measures\nis not available on a forward-looking basis without unreasonable effort due to\nthe uncertainty regarding, and the potential variability of, expenses that may\nbe incurred in the future. Stock-based compensation expense-related charges,\nincluding employer payroll tax-related items on employee stock transactions,\nare impacted by the timing of employee stock transactions, the future fair\nmarket value of our common stock, and our future hiring and retention needs,\nall of which are difficult to predict and subject to constant change. We have\nprovided a reconciliation of GAAP to non-GAAP financial measures in the\nfinancial statement tables for our historical non-GAAP results included in\nthis press release. Our fiscal year ends April 30, and numbers are rounded for\npresentation purposes.\n\nConference Call Details\n What: C3 AI Fiscal First Quarter Earnings Call \n When: Wednesday, September 2, 2026 \n Time: 2:00 p.m. PT / 5:00 p.m. ET \n Participant https://register-conf.media-server.com/register/BI959e755eb0fa492089431eec477ad911 \n \nRegistration: (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBI959e755eb0fa492089431eec477ad911&esheet=54596885&newsitemid=20260902624813&lan=en-US&anchor=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBI959e755eb0fa492089431eec477ad911&index=2&md5=4d3138fdb1af145c1d1be75f6e573cb4) \n (live) \n Webcast: https://edge.media-server.com/mmc/p/5jt6k675/ \n (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fedge.media-server.com%2Fmmc%2Fp%2F5jt6k675%2F&esheet=54596885&newsitemid=20260902624813&lan=en-US&anchor=https%3A%2F%2Fedge.media-server.com%2Fmmc%2Fp%2F5jt6k675%2F&index=3&md5=2989221a33a740cb37a0fe20fbcf8c17) \n (live and replay) \n\n\nStatement Regarding Use of Non-GAAP Financial Measures\n\nThe Company reports the following non-GAAP financial measures, which have not\nbeen prepared in accordance with generally accepted accounting principles in\nthe United States (“GAAP”), in addition to, and not as a substitute for,\nor superior to, financial measures calculated in accordance with GAAP.\n\n\n * Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations,\nnon-GAAP net loss, non-GAAP net loss per share and non-GAAP expenses. Our\nnon-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations,\nnon-GAAP net loss, non-GAAP net loss per share and non-GAAP expenses excludes\nthe effect of restructuring expenses, stock-based compensation expense-related\ncharges and employer payroll tax expense related to employee stock-based\ncompensation. We believe the presentation of operating results that exclude\nthese items provides useful supplemental information to investors and\nfacilitates the analysis of our operating results and comparison of operating\nresults across reporting periods.\n\n * Free cash flow. We believe free cash flow, a non-GAAP financial measure, is\nuseful in evaluating liquidity and provides information to management and\ninvestors about our ability to fund future operating needs and strategic\ninitiatives. We calculate free cash flow as net cash provided by (used in)\noperating activities less purchases of property and equipment and capitalized\nsoftware development costs. This non-GAAP financial measure may be different\nthan similarly titled measures used by other companies. Additionally, the\nutility of free cash flow is further limited as it does not represent the\ntotal increase or decrease in our cash balances for a given period.\n\nWe use these non-GAAP financial measures internally for financial and\noperational decision-making purposes and as a means to evaluate\nperiod-to-period comparisons. Non-GAAP financial measures are not meant to be\nconsidered in isolation or as a substitute for comparable GAAP financial\nmeasures and should be read only in conjunction with our condensed\nconsolidated financial statements prepared in accordance with GAAP. Our\npresentation of non-GAAP financial measures may not be comparable to similar\nmeasures used by other companies. We encourage investors to carefully consider\nour results under GAAP, as well as our supplemental non-GAAP information and\nthe reconciliation between these presentations, to more fully understand our\nbusiness. Please see the tables included at the end of this release and in our\npress release dated June 3, 2026 for the reconciliation of GAAP to non-GAAP\nfinancial measures.\n\nOther Information\n\nProfessional Services Revenue\n\nOur professional services revenue includes service fees and prioritized\nengineering services. Service fees include revenue from services such as\nconsulting, training, and paid implementation services.\n\nPrioritized engineering services are undertaken when a customer requests that\nwe accelerate the design, development, and delivery of software features and\nfunctions that are planned in our future product roadmap. When we agree to\nthis, we negotiate an agreed upon fee to accelerate the development of the\nsoftware. When the software feature is delivered, it becomes integrated to our\ncore product offering, is available to all subscribers of the underlying\nsoftware product, and enhances the operation of that product going forward.\nSuch prioritized engineering services result in production-level computer\nsoftware – compiled code that enhances the functionality of our production\nproducts – which is available for our customers to use over the life of\ntheir software licenses. Per Accounting Standards Codification (ASC) 606,\nPrioritized engineering services revenue is recognized as professional\nservices over the period in which the software development is completed.\n\nTotal professional services revenue consists of:\n   Three Months Ended July 31, \n   2026   2025 \n   (in thousands) \n Prioritized engineering services $ 1,760   $ 8,663 \n Service fees   1,446     1,297 \n Total professional services revenue $ 3,206   $ 9,960 \n\n\nUse of Forward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nthe Private Securities Litigation Reform Act of 1995. The words\n“anticipate,” “believe,” “continue,” “estimate,” “expect,”\n“intend,” “may,” “on track,” “positioned,” “will” and\nsimilar expressions are intended to identify forward-looking statements,\nalthough not all forward-looking statements contain these words.\nForward-looking statements in this press release include, but are not limited\nto, statements regarding our restructuring plan and the reorganization of our\nsales, services, and products organizations, our market leadership position,\nanticipated benefits from our partnerships, our financial outlook for the\nsecond quarter of fiscal 2027 and full 2027 fiscal year, our ability to\nsuccessfully implement a turnaround in our business, our ability to grow\nrevenue, generate cash, attain Non-GAAP profitability, maintain technology\nleadership, and increase customer satisfaction, our sales and customer\nopportunity pipeline, including continued growth in the Federal market, the\nexpected benefits of our offerings, and our business strategies, plans, and\nobjectives for future operations. We have based these forward-looking\nstatements largely on our current expectations and projections about future\nevents and trends that we believe may affect our financial condition, results\nof operations, business strategy, short-term and long-term business operations\nand objectives, and financial needs. These forward-looking statements are\nsubject to a number of risks and uncertainties, including our history of\nlosses and ability to achieve and maintain profitability in the future, our\nhistoric dependence on a limited number of existing customers that account for\na substantial portion of our revenue, our ability to attract new customers and\nretain existing customers, the ability of our restructured global sales and\nservices organization to achieve desired productivity levels in a reasonable\nperiod of time, the impact of return of Tom Siebel as our Chief Executive\nOfficer, and our ability to retain key members of our senior management,\nmarket awareness and acceptance of enterprise AI solutions in general and our\nproducts in particular, the length and unpredictability of our sales cycles\nand the time and expense required for our sales efforts. Some of these risks\nare described in greater detail in our filings with the Securities and\nExchange Commission, including our Annual Report on Form 10-K for the fiscal\nyear ended April 30, 2026, and other filings and reports we make with the\nSecurities and Exchange Commission from time to time, including our Quarterly\nReport on Form 10-Q that will be filed for the fiscal quarter ended July 31,\n2026, although new and unanticipated risks may arise. The future events and\ntrends discussed in this press release may not occur and actual results could\ndiffer materially and adversely from those anticipated or implied in the\nforward-looking statements. Although we believe that the expectations\nreflected in the forward-looking statements are reasonable, we cannot\nguarantee future results, levels of activity, performance, achievements, or\nevents and circumstances reflected in the forward-looking statements will\noccur. Except to the extent required by law, we do not undertake to update any\nof these forward-looking statements after the date of this press release to\nconform these statements to actual results or revised expectations.\n\nAbout C3.ai, Inc.\n\nC3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI\ndelivers a family of fully integrated products including the C3 Agentic AI\nPlatform, an end-to-end platform for developing, deploying, and operating\nenterprise AI applications, C3 AI applications, a portfolio of\nindustry-specific SaaS enterprise AI applications that enable the digital\ntransformation of organizations globally, and C3 Generative AI, a suite of\ndomain-specific generative AI offerings for the enterprise.\n   \n C3.AI, INC. \n \nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n \n \n \n(In thousands, except per share data) \n \n \n \n(Unaudited) \n   Three Months Ended July 31, \n   2026   2025 \n Revenue       \n Subscription $ 49,169     $ 60,301   \n Professional services   3,206       9,960   \n Total revenue   52,375       70,261   \n Cost of revenue       \n Subscription   34,720       41,481   \n Professional services   986       2,336   \n Total cost of revenue   35,706       43,817   \n Gross profit   16,669       26,444   \n Operating expenses       \n Sales and marketing   41,611       62,513   \n Research and development   46,549       64,651   \n General and administrative   26,079       24,099   \n Restructuring   698       —   \n Total operating expenses   114,937       151,263   \n Loss from operations   (98,268 )     (124,819 ) \n Interest income   5,957       8,218   \n Other (expense) income, net   (338 )     132   \n Loss before provision for income taxes   (92,649 )     (116,469 ) \n Provision for income taxes   163       300   \n Net loss $ (92,812 )   $ (116,769 ) \n Net loss per share attributable to Class A and Class B common stockholders, $ (0.60 )   $ (0.86 ) \n basic and diluted \n Weighted-average shares used in computing net loss per share attributable to   154,999       135,375   \n Class A and Class B common stockholders, basic and diluted \n\n C3.AI, INC. \n \n \n \nCONDENSED CONSOLIDATED BALANCE SHEETS \n \n \n \n(In thousands, except for share and per share data) \n \n \n \n(Unaudited) \n   July 31, 2026   April 30, 2026 \n Assets       \n Current assets       \n Cash and cash equivalents $ 136,435     $ 66,197   \n Marketable securities   514,634       509,252   \n Accounts receivable, net of allowance of $1,099 and $1,065 as of July 31, 2026   94,568       100,548   \n and April 30, 2026, respectively \n Prepaid expenses and other current assets   24,531       31,965   \n Total current assets   770,168       707,962   \n Property and equipment, net   63,569       66,904   \n Goodwill   625       625   \n Other assets, non-current   40,442       40,782   \n Total assets $ 874,804     $ 816,273   \n Liabilities and stockholders’ equity       \n Current liabilities       \n Accounts payable $ 8,741     $ 5,509   \n Accrued compensation and employee benefits   44,038       48,560   \n Deferred revenue, current   52,568       34,861   \n Accrued and other current liabilities   19,775       17,641   \n Total current liabilities   125,122       106,571   \n Deferred revenue, non-current   1,106       1,560   \n Other long-term liabilities   53,680       54,391   \n Total liabilities   179,908       162,522   \n Commitments and contingencies       \n Stockholders’ equity       \n Class A common stock   156       145   \n Class B common stock   3       3   \n Additional paid-in capital   2,637,163       2,502,657   \n Accumulated other comprehensive loss   (610 )     (50 ) \n Accumulated deficit   (1,941,816 )     (1,849,004 ) \n Total stockholders’ equity   694,896       653,751   \n Total liabilities and stockholders’ equity $ 874,804     $ 816,273   \n\n C3.AI, INC. \n \n \n \nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS \n \n \n \n(In thousands) \n \n \n \n(Unaudited) \n   Three Months Ended July 31, \n     2026       2025   \n Cash flows from operating activities:       \n Net loss $ (92,812 )   $ (116,769 ) \n Adjustments to reconcile net loss to net cash provided by (used in) operating       \n activities \n Depreciation and amortization   3,403       3,415   \n Non-cash operating lease cost   149       88   \n Stock-based compensation expense   59,233       64,775   \n Accretion of discounts on marketable securities   (1,305 )     (2,811 ) \n Other   34       262   \n Changes in operating assets and liabilities       \n Accounts receivable   5,946       23,302   \n Prepaid expenses, other current assets and other assets   7,562       (230 ) \n Accounts payable   3,083       (2,931 ) \n Accrued compensation and employee benefits   (2,048 )     3,343   \n Operating lease liabilities   (1,300 )     2,187   \n Other liabilities   2,874       (1,538 ) \n Deferred revenue   17,253       (6,628 ) \n Net cash provided by (used in) operating activities   2,072       (33,535 ) \n Cash flows from investing activities:       \n Purchases of property and equipment   (8 )     (760 ) \n Purchases of marketable securities   (129,154 )     (206,492 ) \n Maturities and sales of marketable securities   124,516       156,081   \n Net cash used in investing activities   (4,646 )     (51,171 ) \n Cash flows from financing activities:       \n Proceeds from exercise of Class A common stock options   72,812       1,289   \n Net cash provided by financing activities   72,812       1,289   \n Net increase (decrease) in cash, cash equivalents and restricted cash   70,238       (83,417 ) \n Cash, cash equivalents and restricted cash at beginning of period   78,763       176,924   \n Cash, cash equivalents and restricted cash at end of period $ 149,001     $ 93,507   \n Cash and cash equivalents $ 136,435     $ 80,941   \n Restricted cash included in other assets, non-current   12,566       12,566   \n Total cash, cash equivalents and restricted cash $ 149,001     $ 93,507   \n Supplemental disclosure of cash flow information—cash paid for income taxes $ 518     $ 452   \n Supplemental disclosures of non-cash investing and financing activities:       \n Purchases of property and equipment included in accounts payable and accrued $ 149     $ 201   \n liabilities \n Right-of-use assets obtained in exchange for lease obligations (including $ —     $ (166 ) \n remeasurement of right-of-use assets and lease liabilities due to changes in \n the timing of receipt of lease incentives) \n Vesting of early exercised stock options $ —     $ 5   \n\n C3.AI, INC. \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES \n \n \n \n(In thousands, except percentages) \n \n \n \n(Unaudited) \n   Three Months Ended July 31, \n     2026       2025   \n Reconciliation of GAAP gross profit to non-GAAP gross profit:       \n Gross profit on a GAAP basis $ 16,669     $ 26,444   \n Stock-based compensation expense ((1))   8,788       9,290   \n Employer payroll tax expense related to employee stock-based compensation   635       586   \n ((2)) \n Gross profit on a non-GAAP basis $ 26,092     $ 36,320   \n         \n Gross margin on a GAAP basis   32 %     38 % \n Gross margin on a non-GAAP basis   50 %     52 % \n         \n Reconciliation of GAAP loss from operations to non-GAAP loss from operations:       \n Loss from operations on a GAAP basis $ (98,268 )   $ (124,819 ) \n Stock-based compensation expense ((1))   59,233       64,775   \n Employer payroll tax expense related to employee stock-based compensation   2,178       2,220   \n ((2)) \n Restructuring ((3))   698       —   \n Loss from operations on a non-GAAP basis $ (36,159 )   $ (57,824 ) \n         \n Reconciliation of GAAP net loss per share to non-GAAP net loss per share:       \n         \n Net loss on a GAAP basis $ (92,812 )   $ (116,769 ) \n Stock-based compensation expense ((1))   59,233       64,775   \n Employer payroll tax expense related to employee stock-based compensation   2,178       2,220   \n ((2)) \n Restructuring ((3))   698       —   \n Net loss on a non-GAAP basis $ (30,703 )   $ (49,774 ) \n         \n GAAP net loss per share attributable to Class A and Class B common $ (0.60 )   $ (0.86 ) \n shareholders, basic and diluted \n Non-GAAP net loss per share attributable to Class A and Class B common $ (0.20 )   $ (0.37 ) \n shareholders, basic and diluted \n Weighted-average shares used in computing net loss per share attributable to   154,999       135,375   \n Class A and Class B common stockholders, basic and diluted \n\n   Three Months Ended \n   July 31, 2026   April 30, 2026   July 31, 2025 \n Reconciliation of GAAP expenses to non-GAAP expenses:           \n Total cost of revenue $ 35,706   $ 40,277   $ 43,817 \n Total operating expenses   114,937     132,481     151,263 \n GAAP expenses   150,643     172,758     195,080 \n Stock-based compensation expense ((1))   59,233     54,187     64,775 \n Employer payroll tax expense related to employee stock-based compensation   2,178     1,785     2,220 \n ((2)) \n Restructuring ((3))   698     10,828     — \n Non-GAAP expenses $ 88,534   $ 105,958   $ 128,085 \n\n (1) Stock-based compensation expense for gross profits and gross margin includes \n costs of subscription and cost of professional services as follows. \n Stock-based compensation expense for loss from operations includes total \n stock-based compensation expense as follows: \n\n   Three Months Ended July 31, \n   2026   2025 \n Cost of subscription $ 8,524   $ 8,622 \n Cost of professional services   264     668 \n Sales and marketing   17,592     24,181 \n Research and development   20,037     19,323 \n General and administrative   12,816     11,981 \n Total stock-based compensation expense $ 59,233   $ 64,775 \n\n (2) Employer payroll tax expense related to employee stock-based compensation for \n gross profits and gross margin includes costs of subscription and cost of \n professional services as follows. Employer payroll tax expense related to \n employee stock-based compensation for loss from operations includes total \n employer payroll tax expense related to employee stock-based compensation as \n follows: \n\n   Three Months Ended July 31, \n   2026   2025 \n Cost of subscription $ 615   $ 550 \n Cost of professional services   20     36 \n Sales and marketing   573     674 \n Research and development   700     793 \n General and administrative   270     167 \n Total employer payroll tax expense $ 2,178   $ 2,220 \n\n (3) Non-GAAP Loss from Operations exclude approximately $0.7 million of pre-tax \n restructuring charges which primarily consists of vendor consolidation costs. \n\n\nReconciliation of free cash flow to the GAAP measure of net cash provided by\n(used in) operating activities:\n\nThe following table below provides a reconciliation of free cash flow to the\nGAAP measure of net cash provided by (used in) operating activities for the\nperiods presented:\n   Three Months Ended July 31, \n     2026       2025   \n Net cash provided by (used in) operating activities $ 2,072     $ (33,535 ) \n Less:       \n Purchases of property and equipment   (8 )     (760 ) \n Free cash flow $ 2,064     $ (34,295 ) \n Net cash used in investing activities $ (4,646 )   $ (51,171 ) \n Net cash provided by financing activities $ 72,812     $ 1,289   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260902624813/en/\n(https://www.businesswire.com/news/home/20260902624813/en/)\n\nInvestor Contact \n\nir@c3.ai \n(mailto:ir@c3.ai) \n\n\nC3 AI Public Relations \n\nAxicom\n\nMindy Nelson\n\n830-214-4823\n\npr@c3.ai (mailto:pr@c3.ai)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw7gcJq5a","title":"C3 AI Announces Fiscal First Quarter 2027 Results","author":"Business Wire","ticker":"AI","created":"2026-09-02T20:05:00.233Z","tickers":["AI"],"exchange":"NYSE","article_body":"C3 AI Announces Fiscal First Quarter 2027 Results\n\nTurnaround on track\n\nBookings increase 73% quarter over quarter\n\nC3.ai, Inc.\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fc3.ai%2F&esheet=54596885&newsitemid=20260902624813&lan=en-US&anchor=C3.ai%2C+Inc.&index=1&md5=945dc26c1c464dd8567765aaa19caf9f)\n(“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI\napplication software company, today announced financial results for its fiscal\nfirst quarter ended July 31, 2026.\n\n“Revenue was $52.4 million, on plan. Free cash flow was positive $2.1\nmillion. Non-GAAP operating loss was $36.2 million, a 33% improvement QoQ.\nBookings increased 73% QoQ. Cash balance was $651.1 million, up $76 million\nQoQ. The Company has done exactly what a disciplined, focused turnaround\nshould do. We restructured Sales. We aligned cash outflows with cash inflows.\nWe instituted rigorous expense control. We installed experienced leadership\nacross the board, and we implemented rigorous management discipline across\nevery line of business.\n\nRevenue has stabilized, free cash flow is positive, operating loss has\nnarrowed, and Forrester Research named C3 AI a leader in Enterprise AI. The\nplan is working, we are on track with laser-like management discipline to grow\nrevenue, generate cash, attain non-GAAP profitability, maintain technology\nleadership, and increase customer satisfaction,” said Thomas M. Siebel,\nChairman and Chief Executive Officer, C3 AI.\n\nThe Company closed 22 agreements including with Heidelberg Materials, Ford\nMotor Company, Johnson & Johnson, Holcim, Seaspan, the U.S. Department of\nAgriculture, the Defense Logistics Agency, the U.S. Department of War and the\nU.S. Marine Corps, among others.\n\nFiscal First Quarter 2027 Financial Highlights:\n\n\n * Total Revenue was $52.4 million.\n\n * Subscription Revenue was $49.2 million. Subscription revenue constituted 94%\nof total revenue.\n\n * GAAP gross profit was $16.7 million, representing a 32% gross margin. Non-GAAP\ngross profit was $26.1 million, representing a 50% non-GAAP gross margin.\n\n * GAAP net loss per share was $(0.60). Non-GAAP net loss per share was $(0.20).\n\n * Net cash provided by operating activities was $2.1 million. Free Cash Flow was\n$2.1 million.\n\n * Cash, cash equivalents, and marketable securities was $651.1 million.\n\nFinancial Outlook:\n\nThe Company’s guidance includes GAAP and non-GAAP financial measures.\n\nThe following table summarizes C3 AI’s guidance for the second quarter of\nfiscal 2027 and full-year fiscal 2027:\n (in millions) Second Quarter Fiscal 2027   Full Year Fiscal 2027 \n \nGuidance \nGuidance \n Total revenue $51.0 - $55.0   $210.0 - $240.0 \n Non-GAAP loss from operations $(34.5) - $(42.5)   $(123.0) - $(155.0) \n\n\nA reconciliation of non-GAAP guidance measures to corresponding GAAP measures\nis not available on a forward-looking basis without unreasonable effort due to\nthe uncertainty regarding, and the potential variability of, expenses that may\nbe incurred in the future. Stock-based compensation expense-related charges,\nincluding employer payroll tax-related items on employee stock transactions,\nare impacted by the timing of employee stock transactions, the future fair\nmarket value of our common stock, and our future hiring and retention needs,\nall of which are difficult to predict and subject to constant change. We have\nprovided a reconciliation of GAAP to non-GAAP financial measures in the\nfinancial statement tables for our historical non-GAAP results included in\nthis press release. Our fiscal year ends April 30, and numbers are rounded for\npresentation purposes.\n\nConference Call Details\n What: C3 AI Fiscal First Quarter Earnings Call \n When: Wednesday, September 2, 2026 \n Time: 2:00 p.m. PT / 5:00 p.m. ET \n Participant https://register-conf.media-server.com/register/BI959e755eb0fa492089431eec477ad911 \n \nRegistration: (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBI959e755eb0fa492089431eec477ad911&esheet=54596885&newsitemid=20260902624813&lan=en-US&anchor=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBI959e755eb0fa492089431eec477ad911&index=2&md5=4d3138fdb1af145c1d1be75f6e573cb4) \n (live) \n Webcast: https://edge.media-server.com/mmc/p/5jt6k675/ \n (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fedge.media-server.com%2Fmmc%2Fp%2F5jt6k675%2F&esheet=54596885&newsitemid=20260902624813&lan=en-US&anchor=https%3A%2F%2Fedge.media-server.com%2Fmmc%2Fp%2F5jt6k675%2F&index=3&md5=2989221a33a740cb37a0fe20fbcf8c17) \n (live and replay) \n\n\nStatement Regarding Use of Non-GAAP Financial Measures\n\nThe Company reports the following non-GAAP financial measures, which have not\nbeen prepared in accordance with generally accepted accounting principles in\nthe United States (“GAAP”), in addition to, and not as a substitute for,\nor superior to, financial measures calculated in accordance with GAAP.\n\n\n * Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations,\nnon-GAAP net loss, non-GAAP net loss per share and non-GAAP expenses. Our\nnon-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations,\nnon-GAAP net loss, non-GAAP net loss per share and non-GAAP expenses excludes\nthe effect of restructuring expenses, stock-based compensation expense-related\ncharges and employer payroll tax expense related to employee stock-based\ncompensation. We believe the presentation of operating results that exclude\nthese items provides useful supplemental information to investors and\nfacilitates the analysis of our operating results and comparison of operating\nresults across reporting periods.\n\n * Free cash flow. We believe free cash flow, a non-GAAP financial measure, is\nuseful in evaluating liquidity and provides information to management and\ninvestors about our ability to fund future operating needs and strategic\ninitiatives. We calculate free cash flow as net cash provided by (used in)\noperating activities less purchases of property and equipment and capitalized\nsoftware development costs. This non-GAAP financial measure may be different\nthan similarly titled measures used by other companies. Additionally, the\nutility of free cash flow is further limited as it does not represent the\ntotal increase or decrease in our cash balances for a given period.\n\nWe use these non-GAAP financial measures internally for financial and\noperational decision-making purposes and as a means to evaluate\nperiod-to-period comparisons. Non-GAAP financial measures are not meant to be\nconsidered in isolation or as a substitute for comparable GAAP financial\nmeasures and should be read only in conjunction with our condensed\nconsolidated financial statements prepared in accordance with GAAP. Our\npresentation of non-GAAP financial measures may not be comparable to similar\nmeasures used by other companies. We encourage investors to carefully consider\nour results under GAAP, as well as our supplemental non-GAAP information and\nthe reconciliation between these presentations, to more fully understand our\nbusiness. Please see the tables included at the end of this release and in our\npress release dated June 3, 2026 for the reconciliation of GAAP to non-GAAP\nfinancial measures.\n\nOther Information\n\nProfessional Services Revenue\n\nOur professional services revenue includes service fees and prioritized\nengineering services. Service fees include revenue from services such as\nconsulting, training, and paid implementation services.\n\nPrioritized engineering services are undertaken when a customer requests that\nwe accelerate the design, development, and delivery of software features and\nfunctions that are planned in our future product roadmap. When we agree to\nthis, we negotiate an agreed upon fee to accelerate the development of the\nsoftware. When the software feature is delivered, it becomes integrated to our\ncore product offering, is available to all subscribers of the underlying\nsoftware product, and enhances the operation of that product going forward.\nSuch prioritized engineering services result in production-level computer\nsoftware – compiled code that enhances the functionality of our production\nproducts – which is available for our customers to use over the life of\ntheir software licenses. Per Accounting Standards Codification (ASC) 606,\nPrioritized engineering services revenue is recognized as professional\nservices over the period in which the software development is completed.\n\nTotal professional services revenue consists of:\n   Three Months Ended July 31, \n   2026   2025 \n   (in thousands) \n Prioritized engineering services $ 1,760   $ 8,663 \n Service fees   1,446     1,297 \n Total professional services revenue $ 3,206   $ 9,960 \n\n\nUse of Forward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nthe Private Securities Litigation Reform Act of 1995. The words\n“anticipate,” “believe,” “continue,” “estimate,” “expect,”\n“intend,” “may,” “on track,” “positioned,” “will” and\nsimilar expressions are intended to identify forward-looking statements,\nalthough not all forward-looking statements contain these words.\nForward-looking statements in this press release include, but are not limited\nto, statements regarding our restructuring plan and the reorganization of our\nsales, services, and products organizations, our market leadership position,\nanticipated benefits from our partnerships, our financial outlook for the\nsecond quarter of fiscal 2027 and full 2027 fiscal year, our ability to\nsuccessfully implement a turnaround in our business, our ability to grow\nrevenue, generate cash, attain Non-GAAP profitability, maintain technology\nleadership, and increase customer satisfaction, our sales and customer\nopportunity pipeline, including continued growth in the Federal market, the\nexpected benefits of our offerings, and our business strategies, plans, and\nobjectives for future operations. We have based these forward-looking\nstatements largely on our current expectations and projections about future\nevents and trends that we believe may affect our financial condition, results\nof operations, business strategy, short-term and long-term business operations\nand objectives, and financial needs. These forward-looking statements are\nsubject to a number of risks and uncertainties, including our history of\nlosses and ability to achieve and maintain profitability in the future, our\nhistoric dependence on a limited number of existing customers that account for\na substantial portion of our revenue, our ability to attract new customers and\nretain existing customers, the ability of our restructured global sales and\nservices organization to achieve desired productivity levels in a reasonable\nperiod of time, the impact of return of Tom Siebel as our Chief Executive\nOfficer, and our ability to retain key members of our senior management,\nmarket awareness and acceptance of enterprise AI solutions in general and our\nproducts in particular, the length and unpredictability of our sales cycles\nand the time and expense required for our sales efforts. Some of these risks\nare described in greater detail in our filings with the Securities and\nExchange Commission, including our Annual Report on Form 10-K for the fiscal\nyear ended April 30, 2026, and other filings and reports we make with the\nSecurities and Exchange Commission from time to time, including our Quarterly\nReport on Form 10-Q that will be filed for the fiscal quarter ended July 31,\n2026, although new and unanticipated risks may arise. The future events and\ntrends discussed in this press release may not occur and actual results could\ndiffer materially and adversely from those anticipated or implied in the\nforward-looking statements. Although we believe that the expectations\nreflected in the forward-looking statements are reasonable, we cannot\nguarantee future results, levels of activity, performance, achievements, or\nevents and circumstances reflected in the forward-looking statements will\noccur. Except to the extent required by law, we do not undertake to update any\nof these forward-looking statements after the date of this press release to\nconform these statements to actual results or revised expectations.\n\nAbout C3.ai, Inc.\n\nC3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI\ndelivers a family of fully integrated products including the C3 Agentic AI\nPlatform, an end-to-end platform for developing, deploying, and operating\nenterprise AI applications, C3 AI applications, a portfolio of\nindustry-specific SaaS enterprise AI applications that enable the digital\ntransformation of organizations globally, and C3 Generative AI, a suite of\ndomain-specific generative AI offerings for the enterprise.\n   \n C3.AI, INC. \n \nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n \n \n \n(In thousands, except per share data) \n \n \n \n(Unaudited) \n   Three Months Ended July 31, \n   2026   2025 \n Revenue       \n Subscription $ 49,169     $ 60,301   \n Professional services   3,206       9,960   \n Total revenue   52,375       70,261   \n Cost of revenue       \n Subscription   34,720       41,481   \n Professional services   986       2,336   \n Total cost of revenue   35,706       43,817   \n Gross profit   16,669       26,444   \n Operating expenses       \n Sales and marketing   41,611       62,513   \n Research and development   46,549       64,651   \n General and administrative   26,079       24,099   \n Restructuring   698       —   \n Total operating expenses   114,937       151,263   \n Loss from operations   (98,268 )     (124,819 ) \n Interest income   5,957       8,218   \n Other (expense) income, net   (338 )     132   \n Loss before provision for income taxes   (92,649 )     (116,469 ) \n Provision for income taxes   163       300   \n Net loss $ (92,812 )   $ (116,769 ) \n Net loss per share attributable to Class A and Class B common stockholders, $ (0.60 )   $ (0.86 ) \n basic and diluted \n Weighted-average shares used in computing net loss per share attributable to   154,999       135,375   \n Class A and Class B common stockholders, basic and diluted \n\n C3.AI, INC. \n \n \n \nCONDENSED CONSOLIDATED BALANCE SHEETS \n \n \n \n(In thousands, except for share and per share data) \n \n \n \n(Unaudited) \n   July 31, 2026   April 30, 2026 \n Assets       \n Current assets       \n Cash and cash equivalents $ 136,435     $ 66,197   \n Marketable securities   514,634       509,252   \n Accounts receivable, net of allowance of $1,099 and $1,065 as of July 31, 2026   94,568       100,548   \n and April 30, 2026, respectively \n Prepaid expenses and other current assets   24,531       31,965   \n Total current assets   770,168       707,962   \n Property and equipment, net   63,569       66,904   \n Goodwill   625       625   \n Other assets, non-current   40,442       40,782   \n Total assets $ 874,804     $ 816,273   \n Liabilities and stockholders’ equity       \n Current liabilities       \n Accounts payable $ 8,741     $ 5,509   \n Accrued compensation and employee benefits   44,038       48,560   \n Deferred revenue, current   52,568       34,861   \n Accrued and other current liabilities   19,775       17,641   \n Total current liabilities   125,122       106,571   \n Deferred revenue, non-current   1,106       1,560   \n Other long-term liabilities   53,680       54,391   \n Total liabilities   179,908       162,522   \n Commitments and contingencies       \n Stockholders’ equity       \n Class A common stock   156       145   \n Class B common stock   3       3   \n Additional paid-in capital   2,637,163       2,502,657   \n Accumulated other comprehensive loss   (610 )     (50 ) \n Accumulated deficit   (1,941,816 )     (1,849,004 ) \n Total stockholders’ equity   694,896       653,751   \n Total liabilities and stockholders’ equity $ 874,804     $ 816,273   \n\n C3.AI, INC. \n \n \n \nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS \n \n \n \n(In thousands) \n \n \n \n(Unaudited) \n   Three Months Ended July 31, \n     2026       2025   \n Cash flows from operating activities:       \n Net loss $ (92,812 )   $ (116,769 ) \n Adjustments to reconcile net loss to net cash provided by (used in) operating       \n activities \n Depreciation and amortization   3,403       3,415   \n Non-cash operating lease cost   149       88   \n Stock-based compensation expense   59,233       64,775   \n Accretion of discounts on marketable securities   (1,305 )     (2,811 ) \n Other   34       262   \n Changes in operating assets and liabilities       \n Accounts receivable   5,946       23,302   \n Prepaid expenses, other current assets and other assets   7,562       (230 ) \n Accounts payable   3,083       (2,931 ) \n Accrued compensation and employee benefits   (2,048 )     3,343   \n Operating lease liabilities   (1,300 )     2,187   \n Other liabilities   2,874       (1,538 ) \n Deferred revenue   17,253       (6,628 ) \n Net cash provided by (used in) operating activities   2,072       (33,535 ) \n Cash flows from investing activities:       \n Purchases of property and equipment   (8 )     (760 ) \n Purchases of marketable securities   (129,154 )     (206,492 ) \n Maturities and sales of marketable securities   124,516       156,081   \n Net cash used in investing activities   (4,646 )     (51,171 ) \n Cash flows from financing activities:       \n Proceeds from exercise of Class A common stock options   72,812       1,289   \n Net cash provided by financing activities   72,812       1,289   \n Net increase (decrease) in cash, cash equivalents and restricted cash   70,238       (83,417 ) \n Cash, cash equivalents and restricted cash at beginning of period   78,763       176,924   \n Cash, cash equivalents and restricted cash at end of period $ 149,001     $ 93,507   \n Cash and cash equivalents $ 136,435     $ 80,941   \n Restricted cash included in other assets, non-current   12,566       12,566   \n Total cash, cash equivalents and restricted cash $ 149,001     $ 93,507   \n Supplemental disclosure of cash flow information—cash paid for income taxes $ 518     $ 452   \n Supplemental disclosures of non-cash investing and financing activities:       \n Purchases of property and equipment included in accounts payable and accrued $ 149     $ 201   \n liabilities \n Right-of-use assets obtained in exchange for lease obligations (including $ —     $ (166 ) \n remeasurement of right-of-use assets and lease liabilities due to changes in \n the timing of receipt of lease incentives) \n Vesting of early exercised stock options $ —     $ 5   \n\n C3.AI, INC. \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES \n \n \n \n(In thousands, except percentages) \n \n \n \n(Unaudited) \n   Three Months Ended July 31, \n     2026       2025   \n Reconciliation of GAAP gross profit to non-GAAP gross profit:       \n Gross profit on a GAAP basis $ 16,669     $ 26,444   \n Stock-based compensation expense ((1))   8,788       9,290   \n Employer payroll tax expense related to employee stock-based compensation   635       586   \n ((2)) \n Gross profit on a non-GAAP basis $ 26,092     $ 36,320   \n         \n Gross margin on a GAAP basis   32 %     38 % \n Gross margin on a non-GAAP basis   50 %     52 % \n         \n Reconciliation of GAAP loss from operations to non-GAAP loss from operations:       \n Loss from operations on a GAAP basis $ (98,268 )   $ (124,819 ) \n Stock-based compensation expense ((1))   59,233       64,775   \n Employer payroll tax expense related to employee stock-based compensation   2,178       2,220   \n ((2)) \n Restructuring ((3))   698       —   \n Loss from operations on a non-GAAP basis $ (36,159 )   $ (57,824 ) \n         \n Reconciliation of GAAP net loss per share to non-GAAP net loss per share:       \n         \n Net loss on a GAAP basis $ (92,812 )   $ (116,769 ) \n Stock-based compensation expense ((1))   59,233       64,775   \n Employer payroll tax expense related to employee stock-based compensation   2,178       2,220   \n ((2)) \n Restructuring ((3))   698       —   \n Net loss on a non-GAAP basis $ (30,703 )   $ (49,774 ) \n         \n GAAP net loss per share attributable to Class A and Class B common $ (0.60 )   $ (0.86 ) \n shareholders, basic and diluted \n Non-GAAP net loss per share attributable to Class A and Class B common $ (0.20 )   $ (0.37 ) \n shareholders, basic and diluted \n Weighted-average shares used in computing net loss per share attributable to   154,999       135,375   \n Class A and Class B common stockholders, basic and diluted \n\n   Three Months Ended \n   July 31, 2026   April 30, 2026   July 31, 2025 \n Reconciliation of GAAP expenses to non-GAAP expenses:           \n Total cost of revenue $ 35,706   $ 40,277   $ 43,817 \n Total operating expenses   114,937     132,481     151,263 \n GAAP expenses   150,643     172,758     195,080 \n Stock-based compensation expense ((1))   59,233     54,187     64,775 \n Employer payroll tax expense related to employee stock-based compensation   2,178     1,785     2,220 \n ((2)) \n Restructuring ((3))   698     10,828     — \n Non-GAAP expenses $ 88,534   $ 105,958   $ 128,085 \n\n (1) Stock-based compensation expense for gross profits and gross margin includes \n costs of subscription and cost of professional services as follows. \n Stock-based compensation expense for loss from operations includes total \n stock-based compensation expense as follows: \n\n   Three Months Ended July 31, \n   2026   2025 \n Cost of subscription $ 8,524   $ 8,622 \n Cost of professional services   264     668 \n Sales and marketing   17,592     24,181 \n Research and development   20,037     19,323 \n General and administrative   12,816     11,981 \n Total stock-based compensation expense $ 59,233   $ 64,775 \n\n (2) Employer payroll tax expense related to employee stock-based compensation for \n gross profits and gross margin includes costs of subscription and cost of \n professional services as follows. Employer payroll tax expense related to \n employee stock-based compensation for loss from operations includes total \n employer payroll tax expense related to employee stock-based compensation as \n follows: \n\n   Three Months Ended July 31, \n   2026   2025 \n Cost of subscription $ 615   $ 550 \n Cost of professional services   20     36 \n Sales and marketing   573     674 \n Research and development   700     793 \n General and administrative   270     167 \n Total employer payroll tax expense $ 2,178   $ 2,220 \n\n (3) Non-GAAP Loss from Operations exclude approximately $0.7 million of pre-tax \n restructuring charges which primarily consists of vendor consolidation costs. \n\n\nReconciliation of free cash flow to the GAAP measure of net cash provided by\n(used in) operating activities:\n\nThe following table below provides a reconciliation of free cash flow to the\nGAAP measure of net cash provided by (used in) operating activities for the\nperiods presented:\n   Three Months Ended July 31, \n     2026       2025   \n Net cash provided by (used in) operating activities $ 2,072     $ (33,535 ) \n Less:       \n Purchases of property and equipment   (8 )     (760 ) \n Free cash flow $ 2,064     $ (34,295 ) \n Net cash used in investing activities $ (4,646 )   $ (51,171 ) \n Net cash provided by financing activities $ 72,812     $ 1,289   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260902624813/en/\n(https://www.businesswire.com/news/home/20260902624813/en/)\n\nInvestor Contact \n\nir@c3.ai \n(mailto:ir@c3.ai) \n\n\nC3 AI Public Relations \n\nAxicom\n\nMindy Nelson\n\n830-214-4823\n\npr@c3.ai (mailto:pr@c3.ai)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-02T20:05:00.28642772Z","server_sent_at_ms":1788379500286},"received_at":"2026-09-02T20:05:00.532Z","source_url":"https://www.businesswire.com/news/home/20260902624813/en/"},"analysis":{"id":"123228","press_release_id":"134332","analysis_json":{"industry":{"label":"Software","sector":"Information Technology"},"redFlags":["Revenue down ~25% YoY ($52.4M vs $70.3M) and subscription revenue down ~18% YoY despite 'turnaround on track' framing","Still deeply GAAP unprofitable: $92.8M quarterly net loss and ~$1.94B accumulated deficit","QoQ cash build of $76M was driven largely by $72.8M of stock option exercise proceeds, not operations ($2.1M operating cash flow)","Stock-based compensation of $59.2M dwarfs positive FCF; FY27 guided non-GAAP operating loss of $123-155M puts profitability well out","Professional services revenue collapsed to $3.2M from $10.0M a year ago, with prioritized engineering services down ~80%","Risk factors cite 'the impact of return of Tom Siebel as our Chief Executive Officer' — leadership transition execution risk"],"eventType":"earnings","narrative":"C3 AI reported fiscal first quarter 2027 (ended July 31, 2026) revenue of $52.4 million, down roughly 25% from $70.3 million a year earlier, a result management characterized as on plan for its turnaround.\n\nSequential turnaround metrics improved: bookings rose 73% QoQ, the non-GAAP operating loss narrowed 33% QoQ to $36.2 million, and free cash flow turned positive at $2.1 million versus a $34.3 million outflow a year ago. GAAP net loss was still $92.8 million, or $(0.60) per share, with non-GAAP loss per share of $(0.20).\n\nCash, cash equivalents, and marketable securities reached $651.1 million, up $76 million QoQ, though $72.8 million of the quarter's cash inflow came from stock option exercise proceeds rather than operations. Guidance calls for Q2 revenue of $51-55 million and full-year FY27 revenue of $210-240 million, with continued non-GAAP operating losses of $123-155 million.\n\nThe company closed 22 agreements in the quarter, including with Ford Motor Company, Johnson & Johnson, Heidelberg Materials, Holcim, Seaspan, and U.S. government and defense customers, and was named a leader in Enterprise AI by Forrester Research.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"C3 AI turnaround scoreboard: bookings +73% QoQ and a positive-FCF inflection against a 25% YoY revenue decline — sustainability is the open question."},"keyFigures":{"revenue":52375000,"guidance":"Q2 FY27 revenue $51.0M-$55.0M with non-GAAP operating loss $(34.5)M-$(42.5)M; full-year FY27 revenue $210.0M-$240.0M with non-GAAP operating loss $(123.0)M-$(155.0)M","revenueYoy":"-25%","customDimensions":{"fcf":2064000,"gaap_net_loss":92812000,"agreements_closed":22,"gaap_gross_margin":"32%","bookings_growth_qoq":"73%","operating_cash_flow":2072000,"subscription_revenue":49169000,"non_gaap_gross_margin":"50%","non_gaap_operating_loss":36159000,"subscription_pct_of_revenue":"94%","cash_and_marketable_securities":651100000}},"quotedText":"Revenue was $52.4 million, on plan.","namedEntities":{"people":[{"name":"Thomas M. Siebel","role":"Chairman and Chief Executive Officer"}],"products":["C3 Agentic AI Platform","C3 AI applications","C3 Generative AI"],"companies":[{"name":"C3.ai, Inc.","ticker":"AI","relationship":"filer"},{"name":"Ford Motor Company","relationship":"customer"},{"name":"Johnson & Johnson","relationship":"customer"},{"name":"Heidelberg Materials","relationship":"customer"},{"name":"Holcim","relationship":"customer"},{"name":"Seaspan","relationship":"customer"},{"name":"Forrester Research","relationship":"analyst firm"}],"dollarAmounts":[{"amount":"$52.4 million","context":"fiscal Q1 2027 total revenue"},{"amount":"$49.2 million","context":"subscription revenue, 94% of total revenue"},{"amount":"$2.1 million","context":"positive free cash flow and net cash provided by operating activities"},{"amount":"$36.2 million","context":"non-GAAP operating loss, a 33% improvement QoQ"},{"amount":"$651.1 million","context":"cash, cash equivalents, and marketable securities"},{"amount":"$76 million","context":"sequential increase in cash balance QoQ"},{"amount":"$210.0 - $240.0","context":"full-year fiscal 2027 total revenue guidance (in millions)"},{"amount":"$51.0 - $55.0","context":"Q2 fiscal 2027 revenue guidance (in millions)"}]},"materialImpact":{"score":4,"reasoning":"Quarterly earnings for a high-profile enterprise-AI turnaround name: revenue fell roughly 25% YoY, but bookings rose 73% QoQ, free cash flow turned positive, the non-GAAP operating loss narrowed 33% QoQ, and full-year FY27 guidance was issued. No consensus figures are stated, so no surprise magnitude can be scored; meaningful but not a 5."},"tickerRelevance":{"others":[],"primary":"AI"},"globalImportance":55,"audienceRelevance":65,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap, high-profile enterprise AI name","eventGravity":"quarterly earnings with full-year guidance","noConsensusGiven":true,"retailFavoriteBoost":true,"turnaroundNarrative":"multi-quarter restructuring story drives outsized attention"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"mixed","material_impact_score":4,"narrative":"C3 AI reported fiscal first quarter 2027 (ended July 31, 2026) revenue of $52.4 million, down roughly 25% from $70.3 million a year earlier, a result management characterized as on plan for its turnaround.\n\nSequential turnaround metrics improved: bookings rose 73% QoQ, the non-GAAP operating loss narrowed 33% QoQ to $36.2 million, and free cash flow turned positive at $2.1 million versus a $34.3 million outflow a year ago. GAAP net loss was still $92.8 million, or $(0.60) per share, with non-GAAP loss per share of $(0.20).\n\nCash, cash equivalents, and marketable securities reached $651.1 million, up $76 million QoQ, though $72.8 million of the quarter's cash inflow came from stock option exercise proceeds rather than operations. Guidance calls for Q2 revenue of $51-55 million and full-year FY27 revenue of $210-240 million, with continued non-GAAP operating losses of $123-155 million.\n\nThe company closed 22 agreements in the quarter, including with Ford Motor Company, Johnson & Johnson, Heidelberg Materials, Holcim, Seaspan, and U.S. government and defense customers, and was named a leader in Enterprise AI by Forrester Research.","key_figures":{"revenue":52375000,"guidance":"Q2 FY27 revenue $51.0M-$55.0M with non-GAAP operating loss $(34.5)M-$(42.5)M; full-year FY27 revenue $210.0M-$240.0M with non-GAAP operating loss $(123.0)M-$(155.0)M","revenueYoy":"-25%","customDimensions":{"fcf":2064000,"gaap_net_loss":92812000,"agreements_closed":22,"gaap_gross_margin":"32%","bookings_growth_qoq":"73%","operating_cash_flow":2072000,"subscription_revenue":49169000,"non_gaap_gross_margin":"50%","non_gaap_operating_loss":36159000,"subscription_pct_of_revenue":"94%","cash_and_marketable_securities":651100000}},"named_entities":{"people":[{"name":"Thomas M. Siebel","role":"Chairman and Chief Executive Officer"}],"products":["C3 Agentic AI Platform","C3 AI applications","C3 Generative AI"],"companies":[{"name":"C3.ai, Inc.","ticker":"AI","relationship":"filer"},{"name":"Ford Motor Company","relationship":"customer"},{"name":"Johnson & Johnson","relationship":"customer"},{"name":"Heidelberg Materials","relationship":"customer"},{"name":"Holcim","relationship":"customer"},{"name":"Seaspan","relationship":"customer"},{"name":"Forrester Research","relationship":"analyst firm"}],"dollarAmounts":[{"amount":"$52.4 million","context":"fiscal Q1 2027 total revenue"},{"amount":"$49.2 million","context":"subscription revenue, 94% of total revenue"},{"amount":"$2.1 million","context":"positive free cash flow and net cash provided by operating activities"},{"amount":"$36.2 million","context":"non-GAAP operating loss, a 33% improvement QoQ"},{"amount":"$651.1 million","context":"cash, cash equivalents, and marketable securities"},{"amount":"$76 million","context":"sequential increase in cash balance QoQ"},{"amount":"$210.0 - $240.0","context":"full-year fiscal 2027 total revenue guidance (in millions)"},{"amount":"$51.0 - $55.0","context":"Q2 fiscal 2027 revenue guidance (in millions)"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-02T20:10:08.093Z","global_importance":55,"audience_relevance":65,"importance_components":{"tickerTier":"mid-cap, high-profile enterprise AI name","eventGravity":"quarterly earnings with full-year guidance","noConsensusGiven":true,"retailFavoriteBoost":true,"turnaroundNarrative":"multi-quarter restructuring story drives outsized attention"}},"durationMs":172194,"modelName":"glm-4.7"}}