C3.ai Revenue Falls 19 Percent in Q1

C3.ai(NYSE:AI) reported first quarter fiscal 2026 results on September 3, 2025, with revenue of $70.3 million, a 19% year-over-year decline in revenue, non-GAAP gross margin declined to 52%, and a non-GAAP net loss of $49.8 million. Leading indicators included 28 new initial production deployments, expanded partnerships with(NYSE:NUE),(NYSE:CMA), andHII(NYSE:HII), and an overhaul of sales and service leadership amid the company’s first revenue guidance miss since its IPO. This summary analyzes the operational disruption, organizational changes, and new business initiatives detailed during the call.

This quarter marked C3.ai’s first revenue shortfall as a public company, with CEO and leadership transitions occurring mid-quarter and subscription revenue (non-GAAP) accounting for 86% of total revenue. The company reported significant declines in demonstration license sales (non-GAAP) and attributed materially weaker financial results to internal issues rather than market or competitive dynamics.

The attribution of the miss solely to suboptimal internal execution increases visibility into the company’s self-identified areas for remediation but heightens scrutiny on management’s operational discipline and ability to stabilize enterprise sales cycles following leadership changes.

Continue reading

Source Fool.com