C3ai (AI1) Q1 2027 Earnings Report
MX:AI1 Q1 2027 EPS Results
- Actual EPS
- -MXN 3.76
- Consensus EPS
- -MXN 4.90
- Beat/Miss
- Beat by +MXN 1.15
- One Year Ago EPS
- -MXN 6.95
MX:AI1 Q1 2027 Revenue Results
- Actual Revenue
- MXN 984.23M
- Expected Revenue
- MXN 978.33M
- Beat/Miss
- Beat by +MXN 5.90M
- YoY Revenue Growth
- -25.46%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 09/02/2026
- Time
- After Close
- Conference Call
- Wednesday, September 2, 2026
C3ai's next earnings date is estimated for December 9, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
Q1 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q1 2027 Earnings Call Summary
The call had a strongly positive tone, with management highlighting early turnaround progress, 73% bookings growth, 138% federal bookings growth, revenue above guidance, positive free cash flow, substantial cost reductions, improved gross margin, a strong cash position, and favorable product recognition. The primary challenges were the company's continuing operating losses, expected near-term gross margin moderation, the need to establish consistent revenue growth, and the early commercialization stage of C3 Code.
For the second quarter of fiscal year 2027, C3 AI guided to revenue of $51 million to $55 million and non-GAAP loss from operations of $34.5 million to $42.5 million; for fiscal year 2027, it guided to revenue of $210 million to $240 million and non-GAAP loss from operations of $123 million to $155 million. For the remainder of fiscal year 2027, the company expects its free cash flow to broadly align with a guidance range for non-GAAP loss from operations, and next quarter, as it makes selective investments in a forward-deployed engineering organization, it expects non-GAAP gross margin to moderate to mid-40s.
- Turnaround Execution and Management RestructuringManagement stated that the turnaround is on track after restructuring the company, sales, products, and services; resetting the cost structure; implementing rigorous cost controls; reinstating clear ownership, hard deadlines, and weekly reviews; and appointing experienced executives across sales, products, services, finance, and legal.
- Bookings Growth and Enterprise WinsBookings grew 73% in the quarter, and C3 AI closed 22 enterprise agreements, including agreements with Heidelberg Materials, Johnson & Johnson, Ford Motor Company, Seaspan, Holcim, the Department of War, the Defense Logistics Agency, and the U.S. Department of Agriculture.
- Strong Federal Business PerformanceFederal bookings grew 138% year over year. Management said the federal pipeline looks very good, supported by opportunities to replace an incumbent with high levels of customer dissatisfaction and by greenfield opportunities.
- Revenue Above Guidance and Improved Cash GenerationQuarterly revenue came in above guidance. Non-GAAP operating loss was $36.2 million, $8.3 million better than the midpoint of guidance, while free cash flow was positive $2.1 million versus negative $34.3 million in the same quarter last year and negative $54.8 million last quarter.
- Revenue Mix Weighted Toward SubscriptionsTotal revenue was $52.4 million. Subscription revenue was $49.2 million, representing 94% of total revenue. Professional services revenue was $3.2 million, including $1.8 million from Prioritized Engineering Services, and subscription plus PES revenue was $50.9 million, or 97% of total revenue.
- Gross Margin ImprovementNon-GAAP gross profit was $26.1 million, and non-GAAP gross margin improved sequentially from 37% last quarter to 50%, primarily due to cost reduction actions taken over the last few months.
- Significant Expense Reduction and Restructuring SavingsNon-GAAP expenses were $88.5 million, a reduction of almost $40 million from $128.1 million in the same quarter last year and more than $17 million from the prior quarter. The restructuring plan has achieved approximately $135 million of annualized cost savings, including savings from an approximately 40% headcount reduction across all organizations and lower non-employee expenses.
- Improved Net Loss and Strong Capital PositionNon-GAAP net loss improved to $30.7 million, or $0.20 per share. The company ended the quarter with $651.1 million in cash, cash equivalents, and marketable securities and stated that it remains very well capitalized.
- Independent Recognition of the C3 AI PlatformManagement cited a Forrester Research evaluation that ranked C3 AI #1 in data modeling, agent development, application development tools, cohesive experience, governance controls, platform management, security certification, and supporting services and offerings among the providers evaluated.
- C3 Code Product DifferentiationManagement described C3 Code as an agentic AI application builder that can turn a natural-language prompt, RFP, or product specification into a working enterprise AI application by assembling data, building an ontology and pipeline, developing machine-learning models, designing the user interface, and delivering the application without manual code. Management said an internal application replacing a substantial enterprise HR-management application was built in a day.
- Platform Strategy and Product FocusThe company is refocusing on its Agentic AI stack, including the C3 Agentic AI Platform, C3 Generative AI, C3 AI Studio, and C3 Code. Management said existing enterprise AI application capabilities are being broken into reusable atomic components embedded in the platform and assembled on demand.
- Continued Investment in Customer DeploymentsC3 AI plans to increase investment in forward-deployed engineering and overinvest in existing customers in the short run to ensure customers achieve the returns they are seeking. Management said C3 Code is expected to mitigate the need for forward-deployed engineers in the medium and long run.
- Clear Long-Term Operating ObjectivesManagement stated that its objectives are to return the company to consistent quarter-over-quarter revenue growth, attain free cash flow from operations, and reach non-GAAP profitability, with C3 Code, broader platform adoption, federal systems growth, and sales discipline identified as key elements of the growth engine.
MX:AI1 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Dec 09, 2026 | 2027 (Q2) | -4.00- | -4.7 | ― | ― |
| Sep 02, 2026 | 2027 (Q1) | -4.90-3.76 | -6.95 | 45.95% (+3.19) | |
| Jun 03, 2026 | 2026 (Q4) | -7.01-6.20 | -3.01 | -106.25% (-3.19) | |
| Feb 25, 2026 | 2026 (Q3) | -5.43-7.52 | -2.26 | -233.33% (-5.26) | |
| Dec 03, 2025 | 2026 (Q2) | -6.14-4.70 | -1.13 | -316.67% (-3.57) | |
| Sep 03, 2025 | 2026 (Q1) | -3.89-6.95 | -0.94 | -640.00% (-6.01) | |
| May 29, 2025 | 2025 (Q4) | -3.78-3.01 | -2.07 | -45.45% (-0.94) | |
| Feb 26, 2025 | 2025 (Q3) | -4.36-2.26 | -2.44 | 7.69% (+0.19) | |
| Dec 09, 2024 | 2025 (Q2) | -3.04-1.13 | -2.44 | 53.85% (+1.32) | |
| Sep 04, 2024 | 2025 (Q1) | -2.52-0.94 | -1.69 | 44.44% (+0.75) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
