Live Updates
Final Reaction
| Period | Pre EPS | Post EPS | Pre Rev | Post Rev |
|---|---|---|---|---|
| FY26 | –$0.60 | ↓ | $420M | ↓ |
| FY27 | TBD | TBD | TBD | TBD |
C3.ai still owns a differentiated agentic/GenAI platform and deep partner ecosystem, but execution risk and credibility gap are now front and center. Until new leadership proves stabilization, the stock will trade under pressure.
- Sentiment: Bearish — Street models will come down sharply.
- No near-term catalyst until Q2 numbers prove stabilization.
- With Siebel stepping back, all eyes on Ehikian’s first moves and partner-led monetization.
What Changed This Quarter
- Guidance pulled after massive revenue miss.
- CEO transition: Stephen Ehikian appointed; Siebel to Executive Chairman.
- Sales org overhaul with new leadership across commercial, federal, EMEA.
- Margins collapsed (non-GAAP GM fell to 52% from 70% YoY).
- Cash burn accelerated: –$34M FCF vs. +$7M last yea
Key Operating Highlights
| KPI | Actual | YoY | Why Investors Care |
|---|---|---|---|
| Revenue | $70.3M | –19% | Execution failure after reorg |
| Non-GAAP Gross Margin | 52% | down from 70% | Heavy mix + services drag |
| Deals Closed | 46 | N/A | 28 were initial production deployments — pipeline still alive |
| Partner Deals | 40 | +54% pipeline YoY | Microsoft contributed 24 agreements |
| Federal Sector | 12 deals (28% bookings) | N/A | Defense still a key support |
| Cash | $711.9M | stable | Runway remains strong |
Management Commentary and Guidance
The good news is we have completely restructured the sales and services organization… The bad news is that financial performance in Q1 was completely unacceptable.” — Tom Siebel, Founder & Executive Chairman
Siebel candidly admitted execution failures tied to sales disruption and his health issues. That honesty reinforces credibility, but highlights how deep the reset is. However, this was already clear last month when the stock cratered after prelim numbers were released.
Investors were hoping for a more rosy picture but that is not what we are seeing.
| Guide (Period) | Company Guide | Prior | Street | Direction |
|---|---|---|---|---|
| Q2 FY26 Rev | $72–80M | N/A | ~$100M+ pre-reset | Flat vs. prelim |
| FY26 Guide | Withdrawn | $420M (prelim) | $420M consensus |  Lowered |
Earnings Are In and Stock Tumbles 12.7%
First Take
-
After-hours move: –12.8%
-
Beat/Miss vs. Consensus
| Metric | Actual | Consensus | Beat/Miss |
|---|---|---|---|
| Revenue | $70.3M | $93.9M |  |
| Subscription Revenue | $60.3M | N/A | — |
| GAAP EPS | –$0.86 | –$0.21 | |
| Non-GAAP EPS | –$0.37 | –$0.21 | |
| Gross Margin (Non-GAAP) | 52% | ~65% Street implied | |
| Cash Balance | $711.9M | N/A | — |
This was a trainwreck vs. consensus. Revenue missed by 25%, losses widened, and FY26 guidance was withdrawn — overshadowing new CEO news and product momentum.
How C3.ai performed after recent earnings
C3.ai has delivered four straight EPS beats but not above the Street’s expectations, post-earnings trading has leaned negative, with an average 7-day move of –5.9%.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q1 2025 | +62.61% | +0.85% | +10.23% | +14.39% |
| Q2 2025 | +62.93% | –8.51% | –15.05% | –17.49% |
| Q3 2025 | +52.00% | –1.80% | –12.23% | –4.94% |
| Q4 2025 | +20.39% | –4.35% | –6.98% | –13.09% |
C3.ai (NYSE: AI) will confirm fiscal first-quarter results after the bell. The company pre-announced preliminary numbers last month, guiding revenue to just over $70 million, which was 33% below the midpoint of the prior guidance of $100 to $109 million. The reaction was brutal: shares plunged 25% the following trading day.
Found and CEO Tom Siebel called out sales reorganizations and his own health as reasons for the lower figures. Any positive surprises on tonight’s earnings confirmation should move the stock higher.
Consensus estimates:
- Revenue: $93.88M
- EPS (GAAP): –$0.21
- FY2026 Revenue: $420.0M
- FY2026 EPS: –$0.60
Pre-announced range (Aug 8):
- Revenue: $70.2M–$70.4M
- GAAP loss from operations: $(124.7M)–$(124.9M)
- Non-GAAP loss from operations: $(57.7M)–$(57.9M)
- Cash & equivalents: $711.9M
Street consensus hadn’t fully reset to the company’s lower preliminary guidance, creating a gap investors will reconcile tonight.
Key Areas to Watch
-
Partner Ecosystem Leverage – Q4 saw Microsoft, AWS, and Google Cloud deepen sales collaboration. Over 600 joint accounts are in play with Microsoft alone. Investors will look for updates on execution at scale.
-
Agentic & Generative AI Traction – Management claims over 100 Agentic AI deployments and growing ARR (~$60M). Any color on monetization acceleration could be a catalyst.
-
Federal Contracts & Defense Work – Renewed U.S. Air Force and Defense Logistics Agency deals underpin visibility. Watch for new task orders or expansions.
-
Diversification Beyond Oil & Gas – Manufacturing, life sciences, and state/local governments grew sharply in FY2025. Sustaining momentum outside Baker Hughes remains key.
-
Profitability Timeline – Management has reiterated expectations for free cash flow positivity by FY2026 Q4 and non-GAAP profitability in FY2027. Confirmation will be closely scrutinized.
The post Live: Will C3.ai Earnings Come In Higher Than Earlier Estimates? appeared first on 24/7 Wall St..
Click this link for the original source of this article.
Author: Joel South
This content is courtesy of, and owned and copyrighted by, https://247wallst.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.
