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In the last reported quarter, the company’s adjusted loss per share of 40 cents was wider than the Zacks Consensus Estimate of a loss per share of 29 cents and widened year over year from an adjusted loss per share of 12 cents. Revenues of $53.26 million missed the consensus mark of $75.82 million by 29.8% and tumbled 46.1% year over year. The reported revenues were also lower than the company’s expected range of $72-$80 million.
AI’s earnings surpassed estimates in three of the trailing four quarters, with an average surprise of 1.65%.
How Are Estimates Placed for AI Stock?
The Zacks Consensus Estimate for the fiscal fourth quarter indicates a loss per share of 38 cents, which has remained unchanged over the past 60 days. The estimate is wider than the loss per share of 16 cents reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $49.8 million, indicating a 54.2% year-over-year decline from $108.7 million.
Investors will closely watch whether the enterprise AI software provider can stabilize revenue growth following a disappointing fiscal third quarter that was hurt by weak sales execution in North America and Europe. Management had acknowledged that the fiscal third-quarter results fell well below expectations despite strong demand trends in enterprise AI and government markets.
Factors Likely to Have Shaped C3.ai’s Q4 Performance
Revenues
C3.ai’s fiscal fourth-quarter revenues are likely to have benefited from continued demand for enterprise AI, generative AI and agentic AI solutions across both commercial and government customers. During the fiscal third quarter, the company reported strong momentum in federal, defense and aerospace markets, where bookings increased 134% year over year and represented 55% of total bookings. New and expanded agreements with the U.S. Department of Agriculture, Department of Energy, NATO, the Royal Navy, ExxonMobil and GSK highlighted growing customer adoption.
The company also continued signing Initial Production Deployments, which serve as an important pipeline for future subscription contracts. Management noted that customers are increasingly seeking enterprise-wide AI transformations rather than limited pilot projects, creating opportunities for larger deployments.
However, revenue growth is likely to have remained constrained by lingering sales execution challenges that hurt the fiscal fourth-quarter performance. Management specifically cited weak execution in North America and Europe and subsequently reorganized the sales structure to improve accountability and conversion rates. In addition, C3.ai expects fiscal fourth-quarter revenues in the range of $48-$52 million, below the fiscal third-quarter revenues of $53.3 million, reflecting near-term pressure on bookings conversion. Notably, preliminary results released in May indicated fiscal fourth-quarter revenues of $51.6 million, within guidance.
The Zacks model expects revenues for the Subscription and Professional services operations to be $43.7 million (down from $87 million a year ago) and $6 million (down from $21.4 million reported a year ago), respectively.
Factors Influencing Margins and Bottom Line
Margins and earnings are likely to have been aided by the company’s aggressive restructuring initiative. Management launched a broad cost-reduction program expected to generate approximately $135 million in annualized non-GAAP operating expense savings and significantly reduce cash burn. Workforce reductions, organizational streamlining and lower discretionary spending are likely to have provided initial benefits during the quarter.
At the same time, restructuring charges, elevated stock-based compensation expenses and continued investments in product development are likely to have weighed on profitability. C3.ai guided for fiscal fourth-quarter non-GAAP operating loss of $56-$64 million, underscoring that profitability remains a work in progress despite cost-cutting efforts.
Notably, preliminary results released in May indicated fiscal fourth-quarter non-GAAP operating loss of $54.4 million was better than expected, suggesting that restructuring benefits started materializing faster than anticipated. This non-GAAP figure excludes roughly $10.8 million in pre-tax restructuring expenses associated with an operational efficiency plan, covering costs such as severance, stock-based compensation and WARN Act payments. Furthermore, AI maintained a strong balance sheet with $575.4 million in cash, cash equivalents and investments as of the fiscal fourth quarter.
Overall, investors will be looking for signs of improving sales execution, stronger bookings momentum and evidence that C3.ai’s restructuring efforts are positioning the company for a return to sustainable growth and improved profitability.
What the Zacks Model Says for C3.ai
Our proven model does not conclusively predict an earnings beat for C3.ai this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
AI’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
AI’s Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Computer and Technology sector, which, according to our model, have the right combination of elements to post an earnings beat.
Amphenol’s earnings beat estimates in each of the last four quarters, the average surprise being 14.1%. The company’s earnings for the second quarter of 2026 are expected to surge 42% year over year.
ASML Holding (ASML - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 2.
ASML’s earnings topped estimates in two of the last four quarters and missed on the remaining two occasions, the average negative surprise being 4.5%. The company’s earnings for the second quarter of 2026 are expected to grow 78% year over year.
Ciena (CIEN - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 1.
Ciena’s earnings beat estimates in three of the last four quarters and missed on the remaining occasion, the average surprise being 11.6%. Ciena’s earnings for the fiscal second quarter are expected to rise 247.6% year over year.
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C3.ai Set to Report Q4 Earnings: What Should Investors Expect?
Key Takeaways
C3.ai, Inc. (AI - Free Report) is scheduled to report its fourth-quarter fiscal 2026 (ended April 30, 2026) results on June 3, after the closing bell.
In the last reported quarter, the company’s adjusted loss per share of 40 cents was wider than the Zacks Consensus Estimate of a loss per share of 29 cents and widened year over year from an adjusted loss per share of 12 cents. Revenues of $53.26 million missed the consensus mark of $75.82 million by 29.8% and tumbled 46.1% year over year. The reported revenues were also lower than the company’s expected range of $72-$80 million.
AI’s earnings surpassed estimates in three of the trailing four quarters, with an average surprise of 1.65%.
How Are Estimates Placed for AI Stock?
The Zacks Consensus Estimate for the fiscal fourth quarter indicates a loss per share of 38 cents, which has remained unchanged over the past 60 days. The estimate is wider than the loss per share of 16 cents reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $49.8 million, indicating a 54.2% year-over-year decline from $108.7 million.
Investors will closely watch whether the enterprise AI software provider can stabilize revenue growth following a disappointing fiscal third quarter that was hurt by weak sales execution in North America and Europe. Management had acknowledged that the fiscal third-quarter results fell well below expectations despite strong demand trends in enterprise AI and government markets.
C3.ai, Inc. Price and EPS Surprise
C3.ai, Inc. price-eps-surprise | C3.ai, Inc. Quote
Factors Likely to Have Shaped C3.ai’s Q4 Performance
Revenues
C3.ai’s fiscal fourth-quarter revenues are likely to have benefited from continued demand for enterprise AI, generative AI and agentic AI solutions across both commercial and government customers. During the fiscal third quarter, the company reported strong momentum in federal, defense and aerospace markets, where bookings increased 134% year over year and represented 55% of total bookings. New and expanded agreements with the U.S. Department of Agriculture, Department of Energy, NATO, the Royal Navy, ExxonMobil and GSK highlighted growing customer adoption.
The company also continued signing Initial Production Deployments, which serve as an important pipeline for future subscription contracts. Management noted that customers are increasingly seeking enterprise-wide AI transformations rather than limited pilot projects, creating opportunities for larger deployments.
However, revenue growth is likely to have remained constrained by lingering sales execution challenges that hurt the fiscal fourth-quarter performance. Management specifically cited weak execution in North America and Europe and subsequently reorganized the sales structure to improve accountability and conversion rates. In addition, C3.ai expects fiscal fourth-quarter revenues in the range of $48-$52 million, below the fiscal third-quarter revenues of $53.3 million, reflecting near-term pressure on bookings conversion. Notably, preliminary results released in May indicated fiscal fourth-quarter revenues of $51.6 million, within guidance.
The Zacks model expects revenues for the Subscription and Professional services operations to be $43.7 million (down from $87 million a year ago) and $6 million (down from $21.4 million reported a year ago), respectively.
Factors Influencing Margins and Bottom Line
Margins and earnings are likely to have been aided by the company’s aggressive restructuring initiative. Management launched a broad cost-reduction program expected to generate approximately $135 million in annualized non-GAAP operating expense savings and significantly reduce cash burn. Workforce reductions, organizational streamlining and lower discretionary spending are likely to have provided initial benefits during the quarter.
At the same time, restructuring charges, elevated stock-based compensation expenses and continued investments in product development are likely to have weighed on profitability. C3.ai guided for fiscal fourth-quarter non-GAAP operating loss of $56-$64 million, underscoring that profitability remains a work in progress despite cost-cutting efforts.
Notably, preliminary results released in May indicated fiscal fourth-quarter non-GAAP operating loss of $54.4 million was better than expected, suggesting that restructuring benefits started materializing faster than anticipated. This non-GAAP figure excludes roughly $10.8 million in pre-tax restructuring expenses associated with an operational efficiency plan, covering costs such as severance, stock-based compensation and WARN Act payments. Furthermore, AI maintained a strong balance sheet with $575.4 million in cash, cash equivalents and investments as of the fiscal fourth quarter.
Overall, investors will be looking for signs of improving sales execution, stronger bookings momentum and evidence that C3.ai’s restructuring efforts are positioning the company for a return to sustainable growth and improved profitability.
What the Zacks Model Says for C3.ai
Our proven model does not conclusively predict an earnings beat for C3.ai this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
AI’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
AI’s Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Computer and Technology sector, which, according to our model, have the right combination of elements to post an earnings beat.
Amphenol (APH - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol’s earnings beat estimates in each of the last four quarters, the average surprise being 14.1%. The company’s earnings for the second quarter of 2026 are expected to surge 42% year over year.
ASML Holding (ASML - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 2.
ASML’s earnings topped estimates in two of the last four quarters and missed on the remaining two occasions, the average negative surprise being 4.5%. The company’s earnings for the second quarter of 2026 are expected to grow 78% year over year.
Ciena (CIEN - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 1.
Ciena’s earnings beat estimates in three of the last four quarters and missed on the remaining occasion, the average surprise being 11.6%. Ciena’s earnings for the fiscal second quarter are expected to rise 247.6% year over year.