C3.ai 2026 Q1 Earnings Significant Net Loss Widens

C3.ai (AI) reported its fiscal 2026 Q1 earnings on September 9th, 2025. The report revealed a disappointing performance, with the company’s total revenue declining 19.4% to $70.26 million compared to $87.21 million in the same period a year earlier. This significant drop highlights ongoing challenges in scaling its AI and enterprise software offerings, with the CEO acknowledging the need for continued strategic investments.

Revenue

C3.ai’s revenue fell significantly, with subscription revenue totaling $60.30 million and professional services contributing $9.96 million. This segment breakdown indicates that the company remains heavily reliant on subscription income as a core revenue driver.

Earnings/Net Income

C3.ai's losses deepened in 2026 Q1, with a net loss of $-116.77 million or $-0.86 per share, compared to a loss of $-62.83 million or $-0.50 per share in 2025 Q1. This reflects a 85.9% increase in net losses and a 72.0% wider loss per share, underscoring the financial strain from ongoing R&D and expansion efforts. This trend highlights the company’s current focus on long-term strategic investments over short-term profitability.

Price Action

The stock price of C3.ai saw mixed performance in the wake of the earnings report, rising 1.48% on the day but falling 6.42% for the week. Over the month-to-date period, the stock plummeted by 30.54%, reflecting investor concerns about the company’s current financial position and future profitability.

Post Earnings Price Action Review

Following the 2026 Q1 earnings report, C3.ai posted a net loss of $-116.77 million with an EPS of -$0.86 on revenue of $70.26 million. The company's leadership remains focused on long-term strategic investments in AI and enterprise software, emphasizing the importance of innovation and customer value. The CEO outlined strategic priorities such as enhancing platform capabilities and expanding cloud-native offerings to strengthen the company’s market position. Despite the current financial setbacks, the leadership expressed cautious optimism and a commitment to operational efficiency and execution to drive future profitability.

Guidance

C3.ai expects to continue investing in product development and go-to-market strategies to fuel growth in upcoming quarters. While the company did not provide specific quantitative targets for revenue or EPS, it expressed confidence in its ability to deliver long-term value through strategic execution. The CEO emphasized the importance of aligning with evolving enterprise AI demands and optimizing cost structures to support sustainable performance.

Additional News

Recent news highlighted several developments relevant to the AI and tech sector. Notably, Apple's latest product launch included the iPhone 17 with a starting price of $799 and the iPhone Air at $999. Additionally, several key events unfolded globally, including the Israeli strike on a Hamas leadership member in Qatar, which drew widespread international condemnation. In the corporate world, China's manufacturing sector saw continued growth, with industries emphasizing innovation and digital transformation to maintain competitiveness in the global market.