C3.ai, Inc. (AI) FY2026 10-K Annual Report

Filed: Jun 24, 2026
Information Technology
Services-Prepackaged SoftwareSEC EDGAR

C3.ai, Inc. (AI) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jun 24, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

C3.ai, Inc. FY2026 10-K Analysis

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

C3.ai, Inc. FY2026 Key Financial Metrics
XBRL

Revenue

$250M

-35.7% YoY

Net Income

-$470M

-62.9% YoY

Gross Margin

30.9%

-2970bp YoY

Operating Margin

-199.2%

-11580bp YoY

Net Margin

-187.9%

-11374bp YoY

ROE

-71.9%

-3751bp YoY

Total Assets

$816M

-20.4% YoY

EPS (Diluted)

$-3.35

-49.6% YoY

Operating Cash Flow

-$190M

-359.4% YoY

Source: XBRL data from C3.ai, Inc. FY2026 10-K filing on SEC EDGAR. All figures in USD.

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