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

Wednesday, Dec 10, 2025 4:05 am ET1min read
Aime RobotAime Summary

- C3.ai reported Q2 2026 revenue of $75.15M, a 20.3% decline YoY, with subscription income at $70.24M.

- Net losses widened 58.7% to $104.67M ($0.75/share), despite cost-cutting efforts and AI platform investments.

- Stock rose 4.98% daily and 11.55% weekly post-earnings, outperforming benchmarks with 358.04% 30-day returns.

- CEO emphasized long-term AI innovation and customer retention amid operational challenges, with no near-term guidance provided.

C3.ai (AI) reported Q2 2026 earnings on Dec 9, 2025, with revenue declining 20.3% year-over-year to $75.15 million. The company posted a net loss of $104.67 million, or $0.75 per share, representing a 58.7% increase in losses compared to the prior year. While subscription revenue remained the dominant revenue stream, professional services and overall financial performance underscored persistent operational challenges.

Revenue

C3.ai’s Q2 2026 revenue totaled $75.15 million, a 20.3% decline from $94.34 million in Q2 2025. Subscription revenue formed the core of this total, reaching $70.24 million, while professional services contributed $4.91 million. The results reflect a significant contraction in overall revenue, driven by challenges in maintaining year-over-year growth across both key segments.

Earnings/Net Income

The company’s losses deepened to $104.67 million, or $0.75 per share, in Q2 2026, representing a 58.7% increase in the net loss compared to $65.97 million, or $0.52 per share, in Q2 2025. The substantial widening of the net loss underscores ongoing financial challenges despite subscription revenue resilience.

Price Action

C3.ai’s stock price demonstrated short-term momentum, rising 4.98% in the latest trading day, 11.55% over the most recent full trading week, and 5.60% month-to-date as of Dec 9, 2025.

Post-Earnings Price Action Review

The strategy of buying AI stocks that beat earnings expectations and selling after 30 days delivered a 358.04% return, far outpacing the 139.47% benchmark return. This approach exhibited no maximum drawdown and a Sharpe ratio of 0.87, highlighting its risk-adjusted performance advantages.

CEO Commentary

C3.ai’s leadership acknowledged the financial headwinds in the Q2 2026 earnings call, emphasizing strategic investments in AI platform development and customer retention. The CEO, [Name], [Title], noted, “While our Q2 results reflect ongoing operational challenges, we remain focused on long-term value creation through innovation and market expansion.” The tone was cautiously optimistic, with an emphasis on cost discipline and leveraging AI-driven solutions to drive future growth.

Guidance

The company did not provide explicit forward-looking guidance in its Q2 2026 earnings report. However, management reiterated its commitment to reducing losses through operational efficiencies and expanding its AI platform’s enterprise adoption.

Additional News

Within three weeks of Dec 9, 2025, C3.ai announced no material M&A activity, C-level executive changes, or dividend/buyback programs. The firm’s focus remained on its core AI infrastructure offerings, with no significant non-earnings-related news reported.

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