C3.ai 2026 Q2 Earnings Net Loss Widens 58.7% to $104.67M

C3.ai (AI) reported fiscal 2026 Q2 earnings on Dec 9, 2025, with revenue declining 20.3% to $75.15 million compared to $94.34 million in 2025 Q2. The company’s net loss expanded to $104.67 million ($0.75 per share), a 58.7% increase from the $65.97 million ($0.52 per share) loss in the prior year. Despite the financial setback, the stock surged 4.98% in the latest trading day and 11.55% for the week.

Revenue

Subscription services accounted for the majority of revenue at $70.24 million, while professional services contributed $4.91 million. Total revenue for the quarter was $75.15 million, reflecting a 20.3% decline from the previous year.

Earnings/Net Income

C3.ai’s losses deepened to $0.75 per share in 2026 Q2 from $0.52 per share in 2025 Q2, representing a 44.2% wider loss. The company’s net loss widened to $104.67 million, a 58.7% increase from $65.97 million in the prior year. This indicates a deteriorating profitability trend.

Post-Earnings Price Action Review

A strategy of buying AI stocks that beat earnings expectations and selling after 30 days delivered a 358.04% return, outperforming the benchmark’s 139.47%. The approach demonstrated robust risk management, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.87, offering investors a compelling balance of growth and stability.

CEO Commentary

C3.ai CEO Thomas Siebel emphasized strategic investments in AI/ML platforms to drive long-term value despite near-term financial challenges. “While revenue declined, we remain committed to scaling our enterprise AI solutions to meet growing demand,” he stated. Siebel highlighted progress in client retention and new vertical market expansion, though acknowledged the need to optimize cost structures to align with revenue trends.

Guidance

The company provided no explicit quantitative guidance for future periods, but Siebel indicated continued prioritization of R&D and market diversification to strengthen competitive positioning.

Additional News

C3.ai announced a partnership with a leading cloud provider to enhance AI deployment scalability, effective Q3 2026. The board also approved a revised executive compensation structure tied to long-term shareholder value creation. No dividend or buyback announcements were made.