Key Highlights
- The enterprise AI software company delivered $52.4 million in quarterly revenue for the period ending in July, slightly surpassing the $52.1 million Wall Street consensus
- The company posted an adjusted per-share loss of 20 cents, outperforming the anticipated 26 cent deficit
- Quarterly revenue declined 27% compared to the prior-year period’s $70.3 million
- Forward revenue outlook of $51M-$55M for the upcoming quarter fell short of the $56.6 million analyst forecast
- Shares traded down 1% to $10.42 during premarket hours Thursday, extending year-to-date losses to 23%
Shares of C3.ai were changing hands at $10.42 during Thursday’s premarket session, slipping approximately 1% following the release of quarterly results that exceeded expectations but delivered underwhelming forward guidance.
The enterprise AI company posted $52.4 million in revenue for the fiscal quarter concluded July 31, marginally topping Wall Street’s $52.1 million projection. The adjusted per-share deficit stood at 20 cents, representing an improvement over the 26 cent loss analysts had forecast.
On the surface, those figures appear favorable. However, investors weren’t impressed.
The complete Refinitiv earnings breakdown revealed a more concerning adjusted loss of 33 cents per share. This figure substantially missed the mean analyst projection of 26 cents and landed well beyond the anticipated range of negative 28 to negative 24 cents.
Top-line performance also contracted 27% on a year-over-year basis, declining from $70.3 million in the comparable quarter twelve months earlier to $51.3 million.
Chief Executive Thomas Siebel attempted to cast the results in an optimistic light. “The Company has done exactly what a disciplined, focused turnaround should do,” he stated in the earnings announcement.
Subscription-based revenue, representing the company’s primary income stream, totaled $49.2 million. This figure increased marginally—less than 2%—from the quarter ended in April but represented a significant decrease from the $60.3 million recorded one year prior.
Forward Outlook Falls Below Expectations
Looking ahead, C3.ai projected revenue between $51 million and $55 million for the current quarter. Wall Street had been anticipating $56.6 million. The guidance midpoint comes up approximately $3-4 million short.
The company’s full-year revenue forecast landed between $210 million and $240 million. At a midpoint of $225 million, this narrowly exceeds the analyst consensus of $224.3 million.
Siebel resumed his position as CEO in early May following his departure last July to address an autoimmune condition that impacted his eyesight. He admitted that his health challenges had negatively influenced the company’s sales performance during his absence.
The stock hasn’t registered a closing price above $20 since last August and has declined 20% in 2026. The company’s record closing high reached $177 in 2020.
Wall Street Maintains Cautious Stance
Analyst sentiment remains reserved. The prevailing average rating stands at “hold,” comprising 1 buy recommendation, 7 holds, and 6 sell or strong sell ratings. By comparison, the peer group average rating is “buy.”
The median price objective over a 12-month horizon rests at $9.00, representing approximately 17% downside from the most recent closing price of $10.52.
While the mean earnings projection had climbed roughly 30% over the preceding three months, one analyst downgraded their estimate within the past 30 days.
Prior to the earnings disclosure, C3.ai stock had appreciated 13.8% throughout the reported quarter.
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