C3.ai, Inc. Q1 FY2026 earnings call

· Strategic customer wins: Nucor expanded AI partnership, Comerica launched enterprise AI program, HII expanded AI partnership, US Army deployed contested logistics app. · Introduced strategic integrator program for licensing C3 Agentic AI platform. · Restructured sales and service organizations, appointed new CEO Stephen Ehigian. · Product has high customer satisfaction, large market opportunity with $2T+ addressable market.

Total revenue for the quarter was $70.3 million, a decrease of 19% year-over-year. Subscription revenue was $60.3 million, representing 86% of total revenue. Revenue from demo license sales was $17.9 million, sequentially lower. Professional services revenue was $10 million, 14% of total. Non-GAAP gross profit was $36.3 million with a margin of 52%. Non-GAAP operating loss was $57.8 million, net loss $49.8 million. Subscription and PES revenue combined was $69 million, accounting for 98% of total revenue.

· 2026Q2 revenue guidance: $72 million to $80 million. · 2026Q2 non-GAAP loss from operations: $49.5 million to $57.5 million. · Withdrew previous guidance, will provide Q3 and full-year 2026 guidance when Q2 results are announced.

· Poor sales execution and resource coordination led to Q1 underperformance. · Dependence on partner ecosystem and market competition as potential risks.

Q: How involved will Tom be in sales process going forward and transition to new leadership?

A: Tom will assist Stephen's success, new senior leadership in place for sales and service.

Q: Mix of partner-led vs direct sales?

A: 90% of Q1 deals were partner-led, big investment in partnerships with Azure, AWS, GCP.

Q: Why Stephen chose C3.ai?

A: Enormous market opportunity for enterprise AI, existing tech and team make it compelling.