C3.ai, Inc. reported professional services revenue of $10 million, with $8.7 million from engineering services, accounting for 14% of total revenue. Subscription and PES revenue combined totaled $69 million, representing 98% of total revenue. Strategic customer wins included partnerships with Nucor, Comerica, and HII to implement AI programs across various industries.

The US Army deployed a logistics application on the C3 Agentic AI platform to support frontline vehicles in high-risk environments. Non-GAAP gross profit for the quarter was $36.3 million, with a gross margin of 52%. Non-GAAP operating loss was $57.8 million, and net loss was $49.8 million. The company closed the quarter with $711.9 million in cash and marketable securities.

In Q1, C3.ai signed 28 initial production deployments (IPDs) and had a total of 374 IPDs, of which 266 are active. Non-GAAP gross margin declined to 52% due to a higher mix of IPDs and lower economies of scale. Revenue guidance for Q2 is $72 million to $80 million, with a non-GAAP loss from operations of $49.5 million to $57.5 million. The company is focused on achieving profitability and free cash flow in the future.

The company underwent a restructuring of sales and service organizations, appointing a new Chief Executive Officer, Stephen Ehigian. The focus is on driving growth, customer satisfaction, and accelerating market leadership in enterprise AI. C3.ai’s strategic integrator program, licensing the C3 Agentic AI platform, is well-received by OEMs and systems integrators. The company aims to establish a market leadership position in enterprise AI software.

Read more at Yahoo Finance: C3.ai (AI) Q1 2026 Earnings Call Transcript