Q1 2026 C3.ai Inc Earnings Call Transcript
Key Points
- C3.ai Inc (AI) has secured multi-year partnerships with major clients like Nucor and Qemetica, expanding their AI programs across various facilities and use cases.
- The company is involved in approximately 60 large-scale customer engagements across diverse sectors, including state and local government, manufacturing, and defense.
- C3.ai Inc (AI) introduced a Strategic Integrator Program, which is well-received by OEMs and service providers, expected to become a significant line of business.
- The company has a strong partner ecosystem, with 90% of business closed this quarter being partner-led, particularly with major partners like Azure, AWS, and GCP.
- C3.ai Inc (AI) has a substantial cash reserve, closing the quarter with $711.9 million in cash, cash equivalents, and marketable securities, indicating strong financial backing.
- Total revenue for the quarter was $70.3 million, a decrease of 19% year over year, indicating a significant decline in financial performance.
- The company reported a non-GAAP operating loss of $57.8 million and a non-GAAP net loss of $49.8 million for the quarter.
- Non-GAAP gross margin declined to 52%, primarily due to a higher mix of IPD-related costs and lower economies of scale.
- C3.ai Inc (AI) missed its revenue guidance for the first time in 19 quarters, which was attributed to poor sales execution and resource coordination.
- The company withdrew its previous guidance due to leadership changes and restructuring, creating uncertainty about future financial performance.
Good afternoon. Welcome to C3.ai's earnings call for the first quarter of fiscal year 2026, which ended on July 31, 2025.
My name is Amit Berry. I lead investor relations at C3.ai. With me on the call today are Tom Siebel, Executive Chairman; Stephen Ehikian, Chief Executive Officer; and Hitesh Lath, Chief Financial Officer.
After the market closed today, we issued a press release with details regarding our first-quarter results, as well as a supplemental to our results, both of which can be accessed through the Investor Relations section of our website at ir.c3.AI.
This call is being webcast. A replay will be available on our IR website, following the conclusion of the call.
During today's call, we will make statements related to our business that may be considered forward-looking under Federal Securities Laws. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or
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