C3.ai (AI) Q4 2026 earnings summary

Executive summary

• Leadership transition with Thomas M. Siebel resuming CEO role and a comprehensive turnaround plan, restructuring the company, sales, products, and services to address underperformance and drive shareholder value.

• Organization restructured and new executive leadership installed across all major functions, focusing on execution, customer satisfaction, and expanding enterprise deployments.

• Headcount reduced by ~35% (from 1,075 to 700), with $135 million in annual operating cost savings realized.

• The company is leveraging AI tools across all business functions to increase productivity and efficiency.

Financial highlights

• Q4 total revenue was $51.6 million; subscription revenue was $48.4 million (94% of total).

• Fiscal year 2026 total revenue reached $250.3 million; subscription revenue was $227.1 million (91% of total).

• Q4 non-GAAP gross profit was $19.3 million (37% margin); Q4 GAAP gross profit was $11.3 million (22% margin).

• Q4 non-GAAP net loss was $48.8 million ($0.33 per share); Q4 GAAP net loss per share was $(0.79).

• Full year GAAP net loss per share was $(3.35); non-GAAP net loss per share was $(1.35).

• Free cash flow for Q4 was -$54.8 million; for FY26, $(192.1) million.

• Ended the quarter with $575.4 million in cash equivalents and marketable securities; post CEO share purchase, cash balance is $673 million as of June 3, 2026.

• Non-GAAP operating expenses reduced by $33.9 million year-over-year; Q4 non-GAAP operating loss was $54.4 million.

Outlook and guidance

• Q1 FY27 revenue guidance: $50 million–$54 million; non-GAAP operating loss guidance: $40.5 million–$48.5 million.

• FY27 revenue guidance: $210 million–$240 million; non-GAAP operating loss guidance: $128 million–$160 million.

• Cost savings from restructuring expected to be fully realized in the second half of FY27.