Short answer
C3.ai, Inc. (AI) filed its fiscal 2026 10-K annual report with the SEC on Jun 24, 2026. It reported revenue of $250M (−35.7% year over year) and net income of −$470M.
- Top risk flagged: Regulatory risk from EU AI Act effective Aug 2, 2026, imposing restrictions and fines up to 35 million Euros or 7% global turnover on "high-risk" AI system usage
FY2026 key financial metrics · XBRL
- Revenue
- $250M
- −35.7% YoY
- Net income
- −$470M
- −62.9% YoY
- Operating margin
- -199.2%
- −115.8 pp YoY
- Gross margin
- 30.9%
- −29.7 pp YoY
- EPS (diluted)
- −$3.35
- −49.6% YoY
- ROE
- -71.9%
- −37.5 pp YoY
- Operating cash flow
- −$190M
- −359.4% YoY
Source: XBRL data from the C3.ai, Inc. (AI) FY2026 10-K on SEC EDGAR. USD.
C3.ai, Inc. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core model: integrated Enterprise AI software suite featuring C3 Agentic AI Platform, industry-specific AI applications, Generative AI, and C3 Code for natural-language AI app generation
- New emphasis on C3 Code: agentic development environment automating full AI app build/deploy in hours via multiple orchestrated AI agents
- Strategic shift to consumption-based pricing and multi-cloud platform independence, enabling usage-based fees and avoiding vendor lock-in
- Workforce expanded to 764 employees globally, with 582 US-based as of April 2026
- Unique patented AI agent orchestration technology drives multi-step workflow automation and high-accuracy, enterprise-grade generative AI with traceable, source-cited responses
Management Discussion & Analysis
- Revenue $250.3M, down 36% YoY; subscription revenue $227.1M down 31%, professional services $23.2M down 62%
- Gross margin fell to 31% from 61% YoY; subscription margin declined due to lower revenue and higher payroll costs
- Best segment: subscription revenue $227.1M; worst: professional services revenue dropped 62% to $23.2M
- Cash used in operating activities $190.2M vs $41.4M; restructuring charges $10.8M; capex $1.9M; financing inflow $17M from stock issuance
- Management expects restructuring completion by Q2 FY27; focus on product prioritization, sales transformation, and operational right-sizing
Risk Factors
- Regulatory risk from EU AI Act effective Aug 2, 2026, imposing restrictions and fines up to 35 million Euros or 7% global turnover on "high-risk" AI system usage
- Geopolitical exposure with 10% of revenue from customers outside North America and risks from U.S. and allied sanctions on Russia, Belarus, and Ukraine affecting sales
- Operational risk from dependency on multi-year minimum-spend cloud and integration partner contracts, with penalties for failing to meet thresholds adversely impacting liquidity
- Competitive risk from large tech firms bundling AI solutions and leveraging established market presence, potentially reducing demand for C3.ai’s standalone software
- Financial risk due to net losses of $470.4M in FY2026 and $1.8B accumulated deficit, with uncertain path to sustained profitability impacting stock value and capital availability
Generated from the filing text; verify against the original. How to read a 10-K
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