C3.ai, Inc., the Enterprise AI application software company, announced its fiscal first quarter 2026 financial results, alongside the appointment of Stephen Ehikian as its new Chief Executive Officer, effective September 1, 2025. The results, consistent with preliminary figures released on August 8, 2025, reflect challenges but highlight strategic restructuring and a robust growth outlook.
Financials: Total revenue of $70.3M, with $60.3M (86%) from subscriptions.
Gross Profit: GAAP gross profit at $26.4M (38% margin); non-GAAP at $36.3M (52% margin).
Net Loss: GAAP net loss per share at $(0.86); non-GAAP at $(0.37).
Cash Position: $711.9M in cash, cash equivalents, and marketable securities.
Leadership: Stephen Ehikian appointed CEO; Thomas Siebel transitions to Executive Chairman.
Deals: Closed 46 agreements, including 28 initial production deployments.
C3 Generative AI: Nine agreements closed, delivering significant economic benefits.
For the fiscal first quarter ended July 31, 2025, C3 AI reported total revenue of $70.3 million, with subscription revenue comprising $60.3 million (86%) and combined subscription and prioritized engineering services revenue at $69.0 million (98%). GAAP gross profit was $26.4 million (38% margin), while non-GAAP gross profit reached $36.3 million (52% margin). However, the company faced a GAAP net loss per share of $(0.86) and a non-GAAP net loss per share of $(0.37), with a cash balance of $711.9 million. Thomas Siebel, Founder and Chairman, noted, “The bad news is that financial performance in Q1 was completely unacceptable,” attributing it to disruptions from a sales and services reorganization and his health challenges impacting sales involvement.
C3 AI appointed Stephen Ehikian as CEO, effective September 1, 2025, succeeding Thomas Siebel, who will transition to Executive Chairman. “I am extremely pleased to announce the appointment of Stephen Ehikian as Chief Executive Officer of C3 AI,” said Siebel. “Stephen’s wealth of experience in both the private and public sectors, and domain expertise in all things AI, make him ideally suited to drive growth.” Ehikian, a seasoned technology executive with prior roles at RelateIQ and Airkit.ai (both acquired by Salesforce), is expected to lead C3 AI into its next growth phase, leveraging its AI platform and partnerships.
C3 AI restructured its global sales and services organization, appointing new leadership, including a Chief Commercial Officer and General Manager of EMEA, to enhance customer success. The company closed 46 agreements, including 28 initial production deployments, with clients like Nucor, Qemetica, and the U.S. Army. The new C3 AI Strategic Integrator Program (SIP) enables partners to license the C3 Agentic AI Platform, fostering rapid development of industry-specific AI applications. The partner network, including Microsoft and McKinsey, drove 40 agreements, with a 54% year-over-year increase in the joint opportunity pipeline.
C3 AI’s Generative AI offerings gained traction, closing nine agreements, including with Nucor and the U.S. Intelligence Community. The platform’s agentic data extraction capabilities, which process unstructured data from PDFs and spreadsheets, have delivered measurable benefits, such as an 85% reduction in procurement contract review time and a 20% increase in employee productivity. At a global biopharmaceutical company, C3 Generative AI streamlined experimental study reports, reducing costs and enhancing data access.
The Federal sector accounted for 28% of Q1 bookings, with 12 agreements signed, including with HII and the U.S. Department of Defense. HII’s expanded partnership aims to optimize shipbuilding, while the U.S. Army deployed a contested logistics application for real-time forecasting. Nucor and Qemetica also expanded their AI programs, focusing on supply chain optimization and predictive maintenance, respectively, signaling C3 AI’s growing footprint across industries.
While Q1 performance fell short, Siebel emphasized a strong foundation for recovery, stating, “As we enter Q2, we have new leadership in place, a restructuring of the sales and services organization completed, an extraordinarily large market opportunity, a superlative product offering, and exceptional levels of customer satisfaction.” The company withdrew its full-year fiscal 2026 guidance due to the leadership transition and restructuring but expects to provide updated guidance with Q2 results.
C3 AI’s strategic moves, including Ehikian’s appointment and the SIP launch, position it to capitalize on the growing demand for enterprise AI. With a robust cash position and strong partnerships, the company is poised for a rebound, aiming to deliver transformative AI solutions globally.
C3.ai, Inc. (NYSE: AI) is the Enterprise AI application software company, delivering integrated products like the C3 Agentic AI Platform, industry-specific SaaS AI applications, and C3 Generative AI. Trusted by organizations like Nucor, HII, and the U.S. Department of Defense, C3 AI drives digital transformation through scalable AI solutions.
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