Q2 2026 C3.ai Inc Earnings Call Transcript
Key Points
- Revenue grew 7% sequentially, indicating positive momentum.
- Bookings increased by 49% sequentially to $86 million, showcasing strong deal activity.
- Significant traction in the federal business with bookings across federal, defense, and aerospace increasing by 89% year over year.
- Strong partnerships with major companies like Microsoft and AWS, contributing to a 108% year-over-year growth in the joint opportunity pipeline.
- Launch of C3 AI Agentic Process Automation, expanding the scope of what customers can accomplish with the platform.
- Government shutdown lasting 43 days created headwinds across the federal business.
- Non-GAAP operating loss for the quarter was $42.2 million, indicating financial challenges.
- Free cash flow for the quarter was negative $46.9 million, highlighting cash flow issues.
- Gross margins have decreased, with non-GAAP gross margin at 54%, down from previous levels.
- Sales execution issues in the past have contributed to the company's current challenges.
Good day. Thank you for standing by. Welcome to the C3.ai second-quarter fiscal year 2026 earnings conference call.
(Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to turn the conference over to your speaker today, Amit Berry. Please go ahead.
Good afternoon and welcome to C3.ai's earnings call for the second quarter of fiscal year 2026, which ended on October 31, 2025.
My name is Amit Berry. I lead Investor Relations at C3.ai.
With me on the call today are Stephen Ehikian, Chief Executive Officer; Hitesh Lath, Chief Financial Officer; and Tom Siebel, Executive Chairman.
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
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