C3.ai Stock Earnings Reports

C3.ai reported Q2 FY2026 revenue of $75.1M (up 7% sequentially) with bookings of $86.4M (up 49% sequentially). Subscription and PES revenue comprised 99% of total revenue; subscription revenue rose 16.5% QoQ to $70.2M. Non-GAAP gross margin was 54%; non-GAAP operating loss was $42.2M and non-GAAP net loss was $34.8M (-$0.25/sh). Free cash flow was negative $46.9M, and the company ended the quarter with $675M in cash and marketable securities. The federal/government vertical was a major growth driver (federal/defense/aerospace bookings +89% YoY and 45% of total bookings), with multiple new and expanded agreements across agencies and labs; partners (Microsoft, AWS, Booz Allen, etc.) mediated 89% of bookings and joint pipelines increased sharply. Product momentum includes the launch of Agentic Cross Automation (Agentic AI agents and RPA addressable expansion), plus other roadmap items to accelerate deployment. Management emphasized a disciplined operational plan: sharper sales qualification, focus on IPDs (initial production deployments) as the primary landing motion, tighter execution reviews, and employee incentives tied to measurable objectives. Guidance: Q3 revenue $72M–$80M; Q3 non-GAAP operating loss $44M–$52M. FY2026 revenue guidance $289.5M–$309.5M and non-GAAP operating loss guidance $180.5M–$210.5M. Management said the extended federal shutdown created meaningful headwinds but reiterated confidence in a path back to growth and eventual non-GAAP profitability driven by federal demand, partner scale, product leadership, and disciplined execution.