Companies /Technology

C3.ai Inc - Class A

NYSE: AI Software - Infrastructure
$10.33
â–² $0.63 (+6.49%) today
Markets closed · 9:57pm ET

Q2 2026 Earnings

Reported Dec 3, 2025, 4:08pm ET · SEC source
$-0.25
Beat +24.77%
EPS · est. $-0.33
$75.1M
Beat +0.37%
Revenue · est. $74.9M
−11.6%
Trailing market
AI vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%+9%Dec 3Dec 4report 4:08pm ETearnings+0.1%+6.1%
0+3%+6%+9%Dec 3Dec 4earnings+0.1%+6.1%
AI +6.1%S&P 500 +0.1%
0+3%+6%+9%Dec 3Dec 4report 4:08pm ETearnings−0.0%+6.1%
0+3%+6%+9%Dec 3Dec 4earnings−0.0%+6.1%
AI +6.1%NASDAQ −0.0%
−4%0+4%+8%Dec 2Dec 11report 4:08pm ETearnings+0.8%+7.7%
−4%0+4%+8%Dec 2Dec 11earnings+0.8%+7.7%
AI +7.7%S&P 500 +0.8%
−4%0+4%+8%Dec 2Dec 11report 4:08pm ETearnings+0.3%+7.7%
−4%0+4%+8%Dec 2Dec 11earnings+0.3%+7.7%
AI +7.7%NASDAQ +0.3%
+2.07%
Day of report
−1.57%
Next session
+3.92%
One week
−10.84%
30 days

S&P 500 over the same 30 days: +0.76%.

Did AI Beat Earnings? Q2 2026 Results

C3.ai delivered a cleaner-than-expected <a href="https://247wallst.com/investing/2025/12/03/live-c3-ai-ai-q2-earnings-coverage/">fiscal second quarter</a> 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

“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.”

C3.ai CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026, C3 AI guided total revenue of $72.0 million to $80.0 million and non-GAAP loss from operations of $44.0 million to $52.0 million. For full-year FY2026, the company guided total revenue of $289.5 million to $309.5 million and non-GAAP loss from operations of $180.5 million to $210.5 million. The CEO outlined a detailed execution plan targeting return to growth and a pathway to cash generation and non-GAAP profitability, with concentration on the fastest-growing sectors including the Federal market.

AI YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$-200,000,000$-100,000,000$0$100.0M$94.3M$75.1MRevenue$57.8M$30.4MGross Profit$-219,442,161$-112,113,000Operating Income$-253,188,195$-104,668,000Net Income
$-200,000,000$-100,000,000$0$100.0MRevenueGross ProfitOperating IncomeNet Income

AI Revenue by Segment

Subscription$70.2M
Professional Services$4.9M
Prioritized Engineering Services
Service Fees

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