C3.ai (NYSE:AI) Announces Earnings Results

C3.ai (NYSE:AI) announced its quarterly earnings results on Wednesday. The company reported ($0.40) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.29) by ($0.11), FiscalAI reports. C3.ai had a negative return on equity of 46.51% and a negative net margin of 108.06%.The business had revenue of $53.26 million for the quarter, compared to analysts’ expectations of $75.91 million.

Here are the key takeaways from C3.ai’s conference call:

• Company called the quarter “inadequate,” reporting Q3 revenue of $53.3M, a non-GAAP operating loss of $63.4M and negative free cash flow of $56.2M, with management citing missed deal closures in North America and Europe.
• Management announced a restructuring to deliver approximately $135 million in annual non‑GAAP expense reductions, including ~26% workforce cuts (~280 employees) and targeted non‑employee savings, aiming to materially reduce cash burn and return to non‑GAAP profitability.
• Leadership is refocusing the company on fewer, high‑value applications (asset performance, supply chain, procurement) and has flattened the sales org while embedding agentic AI internally to boost productivity and accelerate proofs of value and deal conversion.
• Federal, defense and aerospace demand was a clear strength—bookings in that segment rose 134% year‑over‑year and made up 55% of total bookings, with notable wins (USDA, DOE, NATO, Royal Navy) that management plans to lean into.
• The business remains highly recurring (90% subscription; subscription+PES = 97%) and signed 14 IPDs this quarter, but bookings were $46.9M and Q4 revenue guidance is $48M–$52M while management works to fix sales execution in NA/EMEA.

C3.ai Stock Up 1.9%

Shares of AI traded up $0.20 during mid-day trading on Wednesday, hitting $10.32. The stock had a trading volume of 9,055,324 shares, compared to its average volume of 6,896,769. C3.ai has a fifty-two week low of $9.53 and a fifty-two week high of $30.24. The company has a market cap of $1.45 billion, a PE ratio of -3.64 and a beta of 1.98. The company’s fifty day simple moving average is $12.54 and its two-hundred day simple moving average is $15.18.

Insider Buying and Selling

In other C3.ai news, CFO Hitesh Lath sold 15,042 shares of C3.ai stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $14.38, for a total value of $216,303.96. Following the completion of the transaction, the chief financial officer owned 223,120 shares of the company’s stock, valued at $3,208,465.60. The trade was a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Chairman Thomas M. Siebel sold 511,732 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $11.66, for a total transaction of $5,966,795.12. Following the sale, the chairman directly owned 722,362 shares in the company, valued at $8,422,740.92. This trade represents a 41.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,884,304 shares of company stock worth $24,970,674 over the last ninety days. 26.50% of the stock is owned by insiders.

Institutional Trading of C3.ai

Several hedge funds have recently bought and sold shares of AI. NewEdge Advisors LLC grew its position in C3.ai by 48.7% in the 1st quarter. NewEdge Advisors LLC now owns 2,442 shares of the company’s stock worth $51,000 after purchasing an additional 800 shares during the last quarter. Parallel Advisors LLC boosted its position in shares of C3.ai by 76.4% during the third quarter. Parallel Advisors LLC now owns 1,849 shares of the company’s stock worth $32,000 after buying an additional 801 shares during the period. BOKF NA boosted its position in shares of C3.ai by 20.7% during the third quarter. BOKF NA now owns 4,709 shares of the company’s stock worth $82,000 after buying an additional 809 shares during the period. Envestnet Asset Management Inc. grew its holdings in C3.ai by 8.8% in the 3rd quarter. Envestnet Asset Management Inc. now owns 12,560 shares of the company’s stock worth $218,000 after buying an additional 1,018 shares in the last quarter. Finally, Larson Financial Group LLC grew its holdings in C3.ai by 683.6% in the 3rd quarter. Larson Financial Group LLC now owns 1,481 shares of the company’s stock worth $26,000 after buying an additional 1,292 shares in the last quarter. 38.96% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of analysts have weighed in on AI shares. Needham & Company LLC reissued a “hold” rating on shares of C3.ai in a report on Thursday, December 4th. Wedbush reiterated an “outperform” rating and set a $20.00 price target on shares of C3.ai in a research note on Thursday, December 4th. DA Davidson reissued an “underperform” rating and issued a $13.00 price target on shares of C3.ai in a research report on Thursday, December 4th. Canaccord Genuity Group reaffirmed a “hold” rating and set a $16.00 price objective on shares of C3.ai in a report on Thursday, December 4th. Finally, Bank of America set a $10.00 target price on C3.ai in a research report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, six have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $21.00.

Key Headlines Impacting C3.ai

Here are the key news stories impacting C3.ai this week:

• Neutral Sentiment: Earnings-preview coverage asks whether increased federal sales can offset margin pressure ahead of results. C3.ai earnings on deck: Can federal surge offset margin pressure?
• Neutral Sentiment: Pre-earnings primer and expectations summaries are circulating for the company’s quarter, highlighting that revenue is the key metric investors will watch. C3.ai (AI) Reports Earnings Tomorrow: What To Expect
• Negative Sentiment: C3.ai cut its Q4 FY2026 revenue outlook to $48.0M–$52.0M vs. consensus ~$77.6M, and did not provide clear EPS guidance — a large miss that signals weaker demand.
• Negative Sentiment: The company lowered FY2026 revenue guidance to $246.7M–$250.7M vs. consensus ~$298.7M, tightening visibility on full-year top-line recovery.
• Negative Sentiment: Reported Q3 results: EPS ($0.40) missed the ($0.29) consensus and revenue was $53.26M vs. $75.91M expected — the miss and negative margins underline ongoing profitability and growth challenges. View Press Release
• Negative Sentiment: Multiple outlets report C3.ai cut about 71 jobs as it responds to the stock slump and financial strain — a cost-cutting move that also signals operational pressure. C3.ai lays off 71 employees amid financial woes
• Negative Sentiment: Coverage warns C3.ai faces big questions after two consecutive revenue declines — investors are focused on whether the company can reverse the trend. C3.ai Faces Big Questions After Two Straight Revenue Declines Demand a Reversal
• Negative Sentiment: Analyst commentary and market pieces note C3.ai has hit a new 52-week low and that a swift recovery looks unlikely without clear revenue inflection. C3.ai Stock Just Hit a New 52-Week Low. Should You Buy the Dip?
• Negative Sentiment: Previews and analysis highlight widening losses and strategic uncertainty, reinforcing investor concern about both growth and path to profitability. C3.ai Q3 2026 earnings preview: Losses widen amid strategic uncertainty

C3.ai Company Profile

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company’s core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.