C3.ai (AI) Q1 2027 earnings summary

Executive summary

• Leadership returned with a turnaround mandate, restructuring management, sales, products, and services to restore discipline and drive execution.

• Bookings surged 73% quarter over quarter, signaling strong sales momentum.

• Revenue for the quarter ended July 31, 2026, was $52.4 million, with 94% from subscriptions and professional services at 6%.

• Free cash flow turned positive at $2.1 million, reflecting improved liquidity.

• The company implemented a restructuring plan focused on operational efficiency, workforce reduction, and cost rationalization.

Financial highlights

• Total revenue for the quarter was $52.4 million, with subscription revenue at $49.2 million (94% of total).

• Non-GAAP gross profit reached $26.1 million (50% margin); GAAP gross profit was $16.7 million (32% margin).

• Non-GAAP operating loss was $36.2 million, $8.3 million better than guidance midpoint; non-GAAP net loss improved to $30.7 million ($0.20 per share).

• GAAP net loss for the quarter was $92.8 million, an improvement from $116.8 million in the prior year.

• Free cash flow was $2.1 million, a $36.4 million improvement year-over-year.

Outlook and guidance

• Q2 FY27 revenue guidance: $51–$55 million; non-GAAP operating loss: $34.5–$42.5 million.

• FY27 revenue guidance: $210–$240 million; non-GAAP operating loss: $123–$155 million.

• Free cash flow expected to broadly align with non-GAAP operating loss guidance for the remainder of FY27.

• Management expects continued operating losses and negative cash flows in the near term due to ongoing investments.

• The restructuring plan is anticipated to be substantially completed by Q2 fiscal 2027, with further cost reductions expected.