C3.ai Revenue Plummets 46% to $53m, Guides Q1 at $50m
C3.ai’s Q4 CY2025 revenue fell 46.1% year-over-year to $53.26 million, missing estimates by 29.6%, while its GAAP loss per share of $0.94 was 24% below consensus. Management guided Q1 CY2026 revenue at $50 million, 35.9% below forecasts, after fiscal Q3 revenue of $53.3 million with 90% from subscriptions and two straight quarterly declines.
1. Q4 CY2025 Earnings Miss
C3.ai reported Q4 CY2025 revenue of $53.26 million, a 46.1% decline year-over-year and 29.6% below Wall Street estimates; its GAAP loss per share was $0.94, missing consensus by 24%.
2. Weak Q1 CY2026 Guidance
The company set Q1 CY2026 revenue guidance at $50 million at the midpoint, representing a 35.9% shortfall to analysts’ projections and marking its second consecutive quarter of top-line contraction.
3. Subscription Mix and Trends
In fiscal Q3 FY2026 ended January 31, C3.ai generated $53.3 million in total revenue, with subscription services accounting for 90% of the mix, as billings continued to underperform past levels.
4. Management’s Turnaround Strategy
CEO Stephen Ehikian has restructured sales, reduced costs and refocused on enterprise-wide AI applications, aiming to restore growth and move the business toward profitability and positive cash flow.