C3.ai, Inc.

What they do

C3.ai sells subscription-based enterprise AI software, including the C3 Agentic AI Platform (a development and runtime environment), C3 AI Applications (pre-built industry-specific solutions), and C3 Generative AI (agentic applications for data retrieval and workflow orchestration). The company also provides professional services, including prioritized engineering services. Customers can deploy the software on public cloud, private cloud, hybrid, or on-premises environments.

Revenue drivers

• Subscription revenue — Primary revenue source, accounting for 91% of total revenue in FY2026 ($227.1M) and 94% in Q4 FY2026 ($48.4M). Includes platform, applications, and generative AI subscriptions, recognized ratably or on usage basis.
• Subscription and Prioritized Engineering Services (combined) — Together with subscription, these services accounted for 98% of total revenue in FY2026 ($245.1M) and Q4 FY2026 ($50.5M). Prioritized engineering involves fees to accelerate development of planned features.
• Professional services — Comprised 10% of total revenue in the three and nine months ended January 31, 2026, down from 13% and 14% in the prior-year periods. Includes prioritized engineering and services fees.

Recent performance

For FY2026 (ended April 30, 2026), total revenue was $250.3M, a decline from $389.1M in FY2025. GAAP net loss widened to $470.4M from $288.7M, and diluted EPS was $(3.35). Q4 FY2026 revenue was $51.6M, with a GAAP gross margin of 22% and a net loss per share of $(0.79). Cash and marketable securities were $575.4M at quarter end, and $673M as of June 3, 2026, including proceeds from the CEO's stock purchase.

Strategy

Management has announced a restructured organization, new executive leadership, and a detailed execution plan with a focus on topline revenue growth, cash generation, and non-GAAP profitability. The company is investing in its five product layers: the Agentic AI Platform, AI Studio, C3 Code, C3 AI Applications, and C3 Generative AI. The CEO described recent sales performance as 'entirely unacceptable' and 'surreal', indicating a priority on fixing sales execution.

Risks

• History of losses — The company has incurred net losses every year since 2009, with a $470.4M loss in FY2026 and an accumulated deficit of $1.8B as of April 30, 2026.
• Revenue decline — FY2026 revenue fell to $250.3M from $389.1M in FY2025, and management's FY2027 guidance implies a further potential decline.
• Uncertain profitability — The company expects operating expenses to increase and does not know when it will achieve or maintain profitability.
• Sales performance — Recent sales performance has been characterized by management as 'unacceptable' and 'surreal', indicating a risk of continued underperformance without successful restructuring.

Outlook

For Q1 FY2027, the company guides total revenue of $50.0M to $54.0M and non-GAAP loss from operations of $(40.5)M to $(48.5)M. For full-year FY2027, revenue is guided at $210.0M to $240.0M, with non-GAAP loss from operations of $(128.0)M to $(160.0)M. Management has not provided a reconciliation of non-GAAP guidance to GAAP due to the uncertainty of certain expenses.