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Compared to Estimates, C3.ai (AI) Q1 Earnings: A Look at Key Metrics

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C3.ai, Inc. (AI - Free Report) reported $52.38 million in revenue for the quarter ended July 2026, representing a year-over-year decline of 25.5%. EPS of -$0.20 for the same period compares to -$0.37 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $51.46 million, representing a surprise of +1.79%. The company delivered an EPS surprise of +23.08%, with the consensus EPS estimate being -$0.26.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

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: 69% compared to the 51.7% average estimate based on three analysts.
  • Gross margin- Subscription: 29% versus the three-analyst average estimate of 27.9%.
  • Revenue- Professional services: $3.21 million compared to the $3.07 million average estimate based on five analysts. The reported number represents a change of -67.8% year over year.
  • Revenue- Subscription: $49.17 million compared to the $48.28 million average estimate based on five analysts. The reported number represents a change of -18.5% year over year.

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

Shares of C3.ai have returned +3% over the past month versus the Zacks S&P 500 composite's -1.4% 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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