AI reports revenue above guidance, gross margin up, bookings +138%

On Wednesday, C3.ai (NYSE: AI ) discussed first-quarter financial results during its earnings call.

The full transcript is provided below.

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For comprehensive financial data and transcripts, visit View the webcast at Summary C3.ai reported first-quarter fiscal 2027 revenue of $52.4 million, with a notable subscription revenue of $49.2 million, comprising 94% of total revenue.

The company has undergone significant restructuring, including a 40% reduction in headcount, achieving annualized cost savings of $135 million.

Federal bookings grew by 138% year over year, driven by dissatisfaction with existing incumbents and increased government spending.

C3.ai's product strategy is now focused on its Agentic AI Platform and the C3 Code, which allows rapid enterprise AI application development.

The company posted a positive free cash flow of $2.1 million, a significant improvement from the previous year's negative cash flow.

Management outlined a clear plan for a turnaround, focusing on consistent revenue growth, free cash flow from operations, and non-GAAP profitability.

Future revenue guidance for fiscal year 2027 is set at $210 million to $240 million, with a non-GAAP operating loss guidance of $123 million to $155 million.

Forrester Research ranked C3.ai as the top AI platform in several categories, enhancing its market position.

C3.ai aims to strengthen its forward deployed engineering organization to support customer deployments and offset costs with C3 Code capabilities.

Full Transcript OPERATOR Hi, welcome to the C3.ai fiscal first quarter 2027 earnings call.

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Please be advised that today's conference is being recorded.

And now I'd like to hand the call over to today's host, Amit Berry.

Please go ahead.

Amit Berry, Investor Relations Good afternoon and welcome to C3.ai's earnings call for the first quarter of fiscal year 2027, which ended on July 31, 2026.

My name is Amit Berry and I lead Investor Relations at C3.ai.

With me on the call today are Tom Siebel, Chairman and Chief Executive Officer, and Hitesh Lath, Chief Financial Officer.

After the market closed today, we issued a press release with details regarding our first quarter results, which can be accessed through the Investor Relations section on our website at ir.c3.ai.

This call is being webcast and a replay will be available on our IR website following the conclusion of the call.

During today's call, we will make statements related to our business that may be considered forward-looking under federal securities laws.

These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date.

We disclaim any obligation to update forward-looking statements or outlook.

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

For a further discussion of the material risks and other important factors that could affect our actual results, please refer to our filings with the SEC.

All figures will be discussed on a non-GAAP basis unless otherwise noted.

Also, during today's call, we will refer to certain non-GAAP financial measures.

A reconciliation of GAAP to non-GAAP financial measures, to the extent reasonably available, is included in our press release.

Finally, at times in our prepared remarks and in response to your questions, we may discuss metrics that are incremental to our usual presentation to give greater insight into the dynamics of our business or our quarterly results.

Please be advised that we may or may not continue to provide this additional detail in the future, and with that, let me turn the call over to Tom.

Thomas M.