C3.ai, Inc. AI reported a loss per share in the first quarter of fiscal 2026 (ended July 31, 2025), which was marginally narrower than the Zacks Consensus Estimate but wider than the year-ago quarter. Quarterly revenues missed the consensus mark and tumbled year over year.
The quarterly performance was hurt by declining contributions from the Subscription and Professional services business. Moreover, increased operating expenses and lower leverage from the top line pressured the bottom line during the quarter.
AI stock tumbled 11.8% during yesterday’s after-market trading session, following the earnings release. The investors’ sentiments are likely to have been hurt by a gloomy view of the second quarter’s revenues and expectations of a wider adjusted loss year over year.
The company reported an adjusted loss per share of 37 cents, narrower than the Zacks Consensus Estimate of a loss per share of 38 cents by 2.6%. In the year-ago quarter, it reported an adjusted loss per share of five cents.
Revenues of $70.3 million missed the consensus mark of $91 million by 22.7% and tumbled 19.4% year over year. The reported revenues were within the company’s expected range of $70.2-$70.4 million, highlighted in the preliminary results reported in early August.
C3.ai, Inc. Price, Consensus and EPS Surprise
C3.ai, Inc. price-consensus-eps-surprise-chart | C3.ai, Inc. Quote
Subscription revenues were $60.3 million, down year over year from $73.5 million, with Professional services revenues also down by 27.6% to $10 million.
Adjusted gross profit during the fiscal first quarter declined year over year to $36.3 million from $60.9 million, with the adjusted gross margin contracting 1,800 basis points (bps) to 52%.
As of the fiscal first quarter, C3.ai had cash and cash equivalents of $80.9 million, down from $164.4 million at fiscal 2025-end.
Net cash used in operating activities was $33.5 million as of the first quarter of fiscal 2026, against net cash provided by operating activities of $8 million in the year-ago period. Free cash flow at the end of the quarter was negative at $34.3 million against $7.1 million at the year-ago quarter’s end.
The company expects revenues in the second quarter of fiscal 2026 to be between $72 million and $80 million, down between 15% and 24% from $94.3 million reported in the year-ago quarter.
Adjusted loss from operations is expected to be between $49.5 million and $57.5 million, wider than $17.2 million reported a year ago.
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C3.ai currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BigBear.ai Holdings, Inc. BBAI reported mixed second-quarter 2025 results, with the bottom line beating the Zacks Consensus Estimate while the revenues missed the same. On a year-over-year basis, the bottom and top lines tumbled.
The quarterly performance was hurt by notable declines in demand volume on certain Army programs. Moreover, increases in research and development and restructuring expenses marred the bottom line of the company. BigBear.ai toned down its full-year revenue guidance to be between $125 million and $140 million from the previously expected range of $160-$180 million. Due to uncertainties surrounding certain Army programs, alongside an expected growth investment in the second half of 2025, BigBear.ai has yet to provide the revised adjusted EBITDA guidance, which was previously expected to be in negative single-digit millions.
SoundHound AI, Inc. SOUN posted record second-quarter 2025 results, outperforming Wall Street expectations on both the top and bottom lines. In its strongest quarter on record, SoundHound AI’s prior strategic investments — particularly its 2024 acquisitions — translated into tangible, high-impact results.
SoundHound AI, the voice Artificial Intelligence specialist, benefited from accelerating adoption across enterprise, automotive and restaurant verticals, as well as strong early traction for its agentic AI and Voice Commerce initiatives. Robust revenue growth, expanding deployments and improved cost synergies underscored management’s confidence, prompting an upward revision to full-year guidance.
IonQ, Inc. IONQ reported a net loss of 70 cents per share in the second quarter of 2025, significantly wider than the Zacks Consensus Estimate and above the year-ago period’s loss of 18 cents. Revenues topped the consensus mark and grew year over year by 81.8%.
During the quarter, IonQ significantly expanded its global footprint with important government and commercial partnerships and launched a world-first partnership with AstraZeneca, AWS and NVIDIA, delivering a 20x acceleration in drug development. For full-year 2025, IonQ now expects revenues in the $82-$100 million range, with third-quarter revenues expected to be within the $25-$29 million range.
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