C3.ai, Inc. reported a significant decrease in total revenue for the fiscal year ended April 30, 2026, reaching $250.3 million, a 35.7% decline from $389.1 million in the prior fiscal year. This reduction was primarily driven by a 31% decrease in subscription revenue, which fell to $227.1 million, and a substantial 62% drop in professional services revenue to $23.2 million. The company attributed the decline in subscription revenue to a decrease in revenue from existing customers, which represented 76% of subscription revenue for fiscal year 2026, compared to 84% in fiscal year 2025.
The company's financial performance in fiscal year 2026 showed a notable increase in operating expenses, totaling $575.9 million, a 3% rise from $560.3 million in fiscal year 2025. This increase was largely due to a $10.8 million restructuring charge related to workforce reductions and cost-saving measures. Despite a decrease in sales and marketing expenses, research and development and general and administrative expenses saw increases. Consequently, the company reported a loss from operations of $498.5 million for fiscal year 2026, an increase from the $324.4 million loss in fiscal year 2025, and a net loss of $470.4 million.
In terms of strategic and operational developments, C3.ai announced a comprehensive restructuring plan in February 2026 aimed at improving operating efficiency and long-term financial position. This plan includes workforce reductions, organizational flattening, product prioritization, a shift to transformation-led sales, and enhanced engineering velocity. The company also saw a leadership transition, with Thomas M. Siebel resuming the role of Chief Executive Officer in May 2026. Furthermore, C3.ai executed 71 initial production deployment agreements in fiscal year 2026, a decrease from 174 in fiscal year 2025, reflecting a strategic focus on engagements with a higher probability of conversion into production contracts.
Looking ahead, C3.ai anticipates continued investment in research and development to enhance its C3 AI Software offerings and expand its market reach. The company aims to grow its customer base and expand usage within existing accounts by addressing new use cases and adding users. While the company has experienced a significant revenue decline in fiscal year 2026, it believes its existing cash, cash equivalents, and marketable securities are sufficient to support working capital and capital expenditure requirements for at least the next 12 months. The company's future success hinges on its ability to execute its restructuring plan, drive customer acquisition and expansion, and adapt to evolving market demands in the enterprise AI sector.
About C3.ai, Inc.
C3 AI, Inc. develops enterprise AI software solutions, including the C3 Agentic AI Platform, industry-specific AI applications, and generative AI tools. Its model-driven architecture enables rapid development, deployment, and operation of scalable AI applications across industries such as manufacturing, defense, energy, healthcare, and government. Serving large global organizations, C3 AI offers subscription-based software and professional services, emphasizing flexibility, integration, and high-value business outcomes through advanced AI orchestration and data unification.
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