Companies /Technology

C3.ai Inc - Class A

NYSE: AI Software - Infrastructure
$10.79
▲ $0.23 (+2.18%) today
Markets closed · 6:12pm ET

Q1 2027 Earnings

Reported Sep 2, 2026, 4:10pm ET · SEC source
$-0.20
Beat +19.65%
EPS · est. $-0.25 Adjusted

Excludes $59.2 million stock-based compensation expense, $2.2 million employer payroll tax expense related to employee stock-based compensation, and $0.7 million restructuring charges (vendor consolidation costs)

$52.4M
Beat +0.55%
Revenue · est. $52.1M
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%Sep 2Sep 3report 4:10pm ETearnings+1.0%+3.2%
−3%0+3%Sep 2Sep 3earnings+1.0%+3.2%
AI +3.2%S&P 500 +1.0%
−3%0+3%Sep 2Sep 3report 4:10pm ETearnings+1.1%+3.2%
−3%0+3%Sep 2Sep 3earnings+1.1%+3.2%
AI +3.2%NASDAQ +1.1%
0+3%+6%Sep 1Sep 10report 4:10pm ETearnings−0.8%+1.2%
0+3%+6%Sep 1Sep 10earnings−0.8%+1.2%
AI +1.2%S&P 500 −0.8%
0+3%+6%Sep 1Sep 10report 4:10pm ETearnings+0.1%+1.2%
0+3%+6%Sep 1Sep 10earnings+0.1%+1.2%
AI +1.2%NASDAQ +0.1%
+3.61%
Day of report
−4.04%
Next session
−3.30%
One week

Did AI Beat Earnings? Q1 2027 Results

C3.ai, Inc. delivered a cautious turnaround narrative in fiscal Q1 2027, beating Wall Street expectations on both the top and bottom lines even as revenue continued to contract sharply year over year. The enterprise AI software company posted an adjusted loss of $0.20 per share, ahead of the $0.25 consensus estimate by 19.65%, while revenue of $52.38 million edged past the $52.09 million forecast by 0.55%, though that figure still represented a 25.5% decline from $70.26 million a year ago, weighed down by a steep drop in professional services revenue and softer subscription sales. The more compelling story was sequential momentum: bookings surged 73% quarter over quarter, free cash flow turned positive at $2.06 million versus negative $34.30 million a year ago, and the non-GAAP operating loss narrowed 33% from the prior quarter. The company also closed 22 agreements, including deals with Ford Motor Company, Johnson & Johnson, and several U.S. federal agencies, reinforcing its government market push. Looking ahead, C3.ai guided Q2 revenue of $51.00 million to $55.00 million, with full-year fiscal 2027 revenue targeted between $210.00 million and $240.00 million.

Key Takeaways
  • Bookings increased 73% quarter over quarter
  • Free cash flow turned positive at $2.1 million
  • Non-GAAP operating loss improved 33% QoQ
  • Subscription revenue constituted 94% of total revenue
  • Sales restructuring and rigorous expense control

“Revenue was $52.4 million, on plan. Free cash flow was positive $2.1 million. Non-GAAP operating loss was $36.2 million, a 33% improvement QoQ. Bookings increased 73% QoQ. Cash balance was $651.1 million, up $76 million QoQ. The Company has done exactly what a disciplined, focused turnaround should do. We restructured Sales. We aligned cash outflows with cash inflows. We instituted rigorous expense control. We installed experienced leadership across the board, and we implemented rigorous management discipline across every line of business.”

C3.ai CEO, on the earnings call

Forward Guidance & Outlook

For Q2 fiscal 2027, C3 AI guides total revenue of $51.0 million to $55.0 million and non-GAAP loss from operations of $34.5 million to $42.5 million. For full-year fiscal 2027, the company guides total revenue of $210.0 million to $240.0 million and non-GAAP loss from operations of $123.0 million to $155.0 million. Management states the turnaround is on track with plans to grow revenue, generate cash, attain non-GAAP profitability, maintain technology leadership, and increase customer satisfaction.

AI YoY Financials

Q1 2027 vs Q1 2026 · SEC filings Q1 2026 Q1 2027
$-100,000,000$-50,000,000$0$50.0M$70.3M$52.4MRevenue$26.4M$16.7MGross Profit$-81,032,407$-98,268,000Operating Income$-77,009,625$-92,812,000Net Income
$-100,000,000$-50,000,000$0$50.0MRevenueGross ProfitOperating IncomeNet Income

AI Revenue by Segment

Subscription$49.2M−18.5%
Professional Services
Prioritized Engineering Services
Service Fees

Figures from SEC filings and company reports. Not investment advice.