C3.ai — 2026Q2 earnings
reported 2026-06-03
EPS -$0.33 vs -$0.37 est — beat
next session -1.2% (close 2026-06-03 → 2026-06-04)
Source
Press release ↗Summary
A reset quarter that doubles as a leadership event: founder Tom Siebel resumed the CEO role in the same release that closed a sharply diminished fiscal 2026. Report and call tell one story — a self-declared turnaround, with blame placed squarely on sales execution rather than demand or churn, a completed restructuring with deep headcount and cost cuts, a broadened go-to-market, and Siebel's own share purchase reinforcing a cash position management says removes any financing question. Fiscal 2027 guidance sits below the year just ended, making the coming quarters the proof the plan has to deliver.
Earnings call
Earnings call webcast ↗Review
From the report
Siebel's return to the CEO seat is the headline of the release itself: a sharply diminished quarter and full year, a completed top-to-bottom restructuring, an insider share purchase that lifted the cash balance, and fiscal 2027 guidance set below the year just ended.
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The release doubles as a leadership announcement: founder Thomas M. Siebel has resumed the role of Chief Executive Officer. show quote
“Thomas M. Siebel Resumes Role of Chief Executive Officer”
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Fiscal fourth-quarter total revenue was $51.6 million. show quote
“Total Revenue was $51.6 million.”
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The quarter's GAAP net loss per share was $(0.79); non-GAAP net loss per share was $(0.33). show quote
“GAAP net loss per share was $(0.79). Non-GAAP net loss per share was $(0.33).”
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Full fiscal year 2026 total revenue was $250.3 million. show quote
“Total Revenue was $250.3 million.”
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The self-criticism is in the company's official language, not just on the call: the release itself calls recent sales performance entirely unacceptable. show quote
“The sales performance over recent quarters has been entirely unacceptable, to the point of surreal”
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Cash, cash equivalents, and marketable securities stood at $673 million as of June 3, 2026, boosted by Siebel's purchase of 6.17 million shares at $11.16 per share. show quote
“The Company also announced that its cash, cash equivalents, and marketable securities balance as of June 3, 2026 was $673 million. This includes the proceeds from Mr. Siebel’s purchase of 6.17 million shares of C3 AI stock at a price of $11.16 per share.”
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From the call
Management framed the collapse as a sales-execution failure — not demand, product, or churn — and presented a completed restructuring, substantially broadened account coverage, and a cash position that removes any financing question as the turnaround plan.
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Siebel opened his return by calling the company's performance staggeringly disappointing and framing the situation as a turnaround. show quote
“The performance of this company has been staggeringly disappointing.”
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Siebel attributed the revenue decline to sales discipline, insisting product, market, and customer satisfaction are intact. show quote
“We have a great product. We have a huge market. We have satisfied customers, and the sales discipline has just been surreal, Patrick.”
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President Stephen Ehikian pushed back on churn concerns, denying any significant loss of production customers. show quote
“We have not experienced a significant loss of production customer.”
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The restructuring targets full-year cost savings of approximately $135 million, with headcount reduced from roughly 1.07 thousand in January 2026 to about 700. show quote
“Last quarter, we launched a restructuring plan which included expense reductions across our business to produce full year cost savings of approximately $135 million As Tom said, our headcount has been reduced from roughly 1.07 thousand in January 2026 to about 700 today.”
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Fiscal year 2027 revenue guidance was set at $210 million to $240 million — below the fiscal year just reported. show quote
“Our revenue guidance for fiscal year 27 is $210 million to $240 million.”
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Siebel said the company is sufficiently capitalized to obviate any question of needing a financing event. show quote
“And the company is sufficiently well capitalized to basically obviate any question of the need for a financing event.”
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Siebel disclosed the prior go-to-market had narrowed each regional sales organization to only 100 to 150 accounts; coverage is being broadened substantially. show quote
“the sales organization might have been focused on total of 100 to 150 accounts. In each of those organizations.”
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as of 2026-08-11