C3.ai, Inc.

Total revenue for Q4 FY2026 was $51.6 million. Subscription revenue was $48.4 million, or 94% of total revenue, and professional services revenue was $3.2 million, including $2.1 million of PES. Non-GAAP gross profit was $19.3 million and non-GAAP gross margin was 37%; professional services gross margin was 78%. Non-GAAP operating loss was $54.4 million, non-GAAP net loss was $48.8 million, and non-GAAP loss per share was $0.33. Free cash flow was $54.8 million, and the company ended the quarter with $575.4 million in cash equivalents and marketable securities, later noted as $673 million after the CEO’s stock purchase cash was received. For FY2027, management guided revenue to $210 million to $240 million and non-GAAP operating loss to $128 million to $160 million; Q1 FY2027 revenue guidance was $50 million to $54 million and non-GAAP operating loss guidance was $40.5 million to $48.5 million.

Tom Siebel said the company is in a turnaround and that virtually everything is being reworked: sales, products, services, leadership, and go-to-market. He emphasized a shift toward an “agentic AI-first mindset,” broader territory coverage, and focusing on larger enterprise accounts rather than a narrow set of deals. His tone was highly self-critical about prior execution and very confident that the new structure will improve customer success, revenue growth, and shareholder value.

Hitesh Lath highlighted that Q4 revenue was $51.6 million, gross margin was 37%, operating loss was $54.4 million, and free cash flow was $54.8 million. He said non-GAAP operating expenses fell to $106 million, down $33.9 million from $139.9 million in the same quarter last year, and reiterated that the restructuring is targeting about $135 million of annual cost savings; the company has already completed actions to realize almost $130 million of those savings. He also noted the company closed the quarter well-capitalized with $575.4 million in cash equivalents and marketable securities, later updated to $673 million after the CEO’s stock purchase funds were received.

Analysts focused on why revenue fell so sharply versus FY2025, whether churn and non-renewals had worsened, and how federal contract ramps and the mix of software versus services/PES should be modeled. Siebel attributed the revenue decline primarily to weak sales execution and said he did not think there had been a significant loss of production customers; Lath supported that by saying the company has not experienced a significant loss of production customers. On guidance mix, management said it guides to total revenue and could not reliably break out the mix of demo licenses, PES, and services after the restructuring, while reiterating that the company is focused on software revenue.