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Here's What Key Metrics Tell Us About C3.ai (AI) Q3 Earnings

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C3.ai, Inc. (AI - Free Report) reported $53.26 million in revenue for the quarter ended January 2026, representing a year-over-year decline of 46.1%. EPS of -$0.40 for the same period compares to -$0.12 a year ago.

The reported revenue represents a surprise of -29.76% over the Zacks Consensus Estimate of $75.82 million. With the consensus EPS estimate being -$0.29, the EPS surprise was -36.75%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how C3.ai performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Gross margin- Professional services: 74% versus 74.1% estimated by three analysts on average.
  • Gross margin- Subscription: 11% versus 49.9% estimated by three analysts on average.
  • Revenue- Professional services: $5.1 million versus the six-analyst average estimate of $7.48 million. The reported number represents a year-over-year change of -61.1%.
  • Revenue- Subscription: $48.16 million compared to the $68.32 million average estimate based on six analysts. The reported number represents a change of -43.8% year over year.

View all Key Company Metrics for C3.ai here>>>

Shares of C3.ai have returned -18.4% over the past month versus the Zacks S&P 500 composite's -5.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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