Q2 26 EPS
$-0.25
BEAT +24.77%
Est. $-0.33
Q2 26 Revenue
$75.1M
BEAT +0.37%
Est. $74.9M
vs S&P Since Q2 26
-47.5%
TRAILING MARKET
AI -38.4% vs S&P +9.1%
Market Reaction
Did AI Beat Earnings? Q2 2026 Results
C3.ai delivered a cleaner-than-expected fiscal second quarter in its ongoing business model transition, posting a non-GAAP loss of $0.25 per share against a consensus estimate of $0.33, a 24.77% beat, while revenue of $75.15 million edged past the $7… Read more C3.ai delivered a cleaner-than-expected fiscal second quarter in its ongoing business model transition, posting a non-GAAP loss of $0.25 per share against a consensus estimate of $0.33, a 24.77% beat, while revenue of $75.15 million edged past the $74.87 million estimate by 0.37%, though it still fell 20.3% year-over-year as the company continues to absorb the revenue drag of shifting away from professional services. The sharpest drop came from prioritized engineering services, which declined from $9.66 million to $3.94 million, compressing GAAP gross margin to 40% from 61% a year ago. The quarter's most compelling story, however, was federal momentum: bookings across federal, defense, and aerospace grew 89% year-over-year and accounted for 45% of total bookings, with new agreements spanning HHS, the U.S. Army, and the Intelligence Community. Looking ahead, C3 AI guided Q3 revenue of $72.00 million to $80.00 million and full-year revenue of $289.50 million to $309.50 million, as new CEO Stephen Ehikian mapped a path toward growth and eventual non-GAAP profitability.
Key Takeaways
- • Federal bookings grew 89% year-over-year, representing 45% of total bookings
- • Total bookings increased 49% quarter-over-quarter
- • 89% of total bookings driven through partner ecosystem
- • 17 agreements greater than $1 million and six greater than $5 million
- • 46 agreements closed in Q2 including new and expanded deals with AMD, GSK, Air Products, U.S. Steel, and Duke Energy
AI YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
AI Revenue by Segment
With YoY comparisons, source: SEC Filings
“We delivered a solid quarter driven by excellent performance in our Federal business and increased high-value deal activity across our customer base. The Federal market continues to be a large growth vector for us.”
— Stephen Ehikian, Q2 2026 Earnings Press Release
AI Earnings Trends
AI vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AI EPS Trend
Earnings per share: estimate vs actual
AI Revenue Trend
Quarterly revenue: estimate vs actual
AI Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 BEAT FY | $-0.37 | $-0.33 | +11.46% | $51.6M | +2.73% |
| FY Full Year | $-1.39 | $-1.35 | +2.85% | $250.3M | +0.54% |
| Q3 26 MISS | $-0.29 | $-0.40 | -38.26% | $53.3M | -29.59% |
| Q2 26 BEAT | $-0.33 | $-0.25 | +24.77% | $75.1M | +0.37% |
| Q1 26 MISS | $-0.21 | $-0.37 | -75.27% | $70.3M | -25.16% |
| Q4 25 BEAT FY | $-0.20 | $-0.16 | +20.40% | $108.7M | +0.95% |
| FY Full Year | $-0.44 | $-0.41 | +7.57% | $389.1M | +0.24% |