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C3 AI: Moving Beyond Pilots—Can Large-Scale AI Deals Drive The Next Growth Phase?

C3 AI reported third-quarter fiscal year 2026 results that fell short of expectations, with revenues totaling $53.3 million and a non-GAAP net loss of $56.4 million, or $0.40 per share. Subscription revenues, which composed 90% of total revenue, amounted to $48.2 million, while professional services contributed $5.1 million. Non-GAAP gross margin stood at 37%, with professional services achieving an 82% margin. The company booked $46.9 million in total bookings during the quarter. Despite negative free cash flow of $56.2 million for the period, C3 AI maintained a strong capital position with $621.9 million in cash and equivalents. Leadership acknowledged that performance was notably weak, specifically in North America and Europe, attributing deficiencies largely to sales execution shortcomings.