C3.ai Revenue Plunges 46% to $53.3M as Q3 FY2026 Loss Widens to $133.4M

C3.ai, Inc., an enterprise AI software company, reported revenue of $53.3 million for the three months ending January 31, 2026, down 46% from $98.8 million in the same quarter a year earlier. For the nine months ending January 31, 2026, revenue totaled $198.7 million, a 29% decline from $280.3 million in the prior-year period. Read more earnings reports.

The company's net loss widened sharply to $133.4 million in the third fiscal quarter from $80.2 million in the year-ago quarter, a 66% increase. For the nine-month period, C3.ai posted a net loss of $354.8 million compared to $209.0 million a year earlier, representing a 70% deterioration.

Margins Compress as Costs Outpace Revenue

Gross profit for the quarter ending January 31, 2026 fell to $9.2 million from $58.3 million in the prior-year quarter, a decline of 84%. The gross margin contracted significantly as cost of revenue rose to $44.0 million from $40.4 million, while total revenue dropped by nearly half.

Operating expenses climbed to $149.6 million in the quarter from $145.9 million a year earlier. Research and development spending totaled $58.8 million, roughly flat compared to $59.4 million in the prior-year quarter. For the nine-month period, R&D expenses increased to $181.8 million from $168.0 million.

The operating loss for the three months ending January 31, 2026 was $140.4 million, compared to an operating loss of $87.6 million in the same quarter of fiscal 2025. On a nine-month basis, the operating loss expanded to $377.3 million from $235.5 million.

Cash Position Erodes

Cash and cash equivalents stood at $88.8 million as of January 31, 2026, down from $164.4 million as of April 30, 2025. Combined cash and restricted cash totaled $101.4 million at quarter-end, down from $176.9 million at the start of the fiscal year.

Cash used in operations for the nine months ending January 31, 2026 totaled $135.8 million, more than double the $52.7 million used in the prior-year period. Cash from investing activities generated $51.2 million, a reversal from the $6.5 million used a year earlier. Financing activities provided $9.1 million compared to $17.2 million in the prior-year period.

Total assets declined to $895.8 million as of January 31, 2026 from $1.03 billion as of April 30, 2025. Stockholders' equity decreased to $719.5 million from $838.3 million over the same period. The company's accumulated deficit widened to $1.73 billion from $1.38 billion.

Share Count Increases

Common shares outstanding increased to 144.2 million as of January 31, 2026 from 133.9 million as of April 30, 2025. Weighted average diluted shares outstanding for the quarter were 142.0 million compared to 130.4 million in the prior-year quarter.

Diluted loss per share for the three months ending January 31, 2026 was $0.94 compared to $0.62 in the year-ago quarter. For the nine-month period, diluted loss per share was $2.56 versus $1.64 a year earlier.