C3.ai (AI) Q2 2026: Deepening Net Losses Reinforce Bearish Profitability Narratives

C3.ai (AI) just posted its Q2 2026 numbers, with revenue at about $75.1 million and basic EPS at roughly -$0.75, as the company continues to run at a loss. Looking back over recent quarters, revenue has moved from about $94.3 million in Q2 2025 to $75.1 million in Q2 2026. Over the same period, basic EPS shifted from around -$0.52 to -$0.75, and trailing 12 month EPS now sits near -$2.84 alongside revenue of roughly $352.9 million. This sets the stage for a results season where investors are watching margins and the path to profitability more closely than ever.

See our full analysis for C3.ai.

With the latest numbers on the table, the next step is to see how this earnings print lines up with the big narratives around C3.ai, from its growth story to the ongoing debate about when, or if, margins can materially turn the corner.

See what the community is saying about C3.ai

Losses Deepen To $104.7 Million

• Net income excluding extra items came in at a loss of about $104.7 million in Q2 2026, versus roughly $66.0 million in Q2 2025, and the trailing 12 month loss has grown to around $381.3 million.
• Critics highlight the bearish risk that C3.ai may struggle to scale profitably, and the widening losses add weight to that concern.
  • Over the last five years, losses have grown at about 25.5% per year, and the company is still not forecast to be profitable in the next three years, so the current earnings trend does not yet point to a clear turnaround.
  • Negative free cash flow and a non GAAP operating loss of $57.8 million mentioned in the narrative sit alongside these GAAP losses, which together back the cautious view that the business model has more work to do before it can consistently generate positive earnings.

Analysts who worry about sustained losses will be watching future quarters closely to see if cost discipline catches up with revenue growth. 🐻 C3.ai Bear Case

Revenue Slows To 3.7 Percent Growth

• On a trailing 12 month basis, revenue is about $352.9 million, growing roughly 3.7% per year, compared with a 10.6% annual growth rate cited for the broader US market.
• From a bearish angle, modest growth plus partner dependency makes the path to faster top line expansion an important proof point.
  • The latest reported quarter shows revenue of about $75.1 million, down from $94.3 million in Q2 2025. This contrasts with the narrative that expanding AI adoption across industries should drive strong multi year growth as deployments scale.
  • With 90% of deals described as partner led, bears argue that relying heavily on hyperscalers while growth lags the broader market could leave C3.ai vulnerable if those partners prioritize their own competing solutions.

Premium Valuation At 6 Times Sales

• The stock trades around $15.32 per share, and the company is valued at roughly 6 times trailing 12 month sales, compared with about 5 times for the broader US software industry and 2.2 times for peers.
• Supporters of the bullish narrative point to potential margin expansion and faster growth to justify that premium, but the current numbers leave work to be done.
  • Analysts expect revenue to grow 16.4% annually over the next three years, yet today the company remains loss making with a trailing 12 month EPS of about negative $2.84, so the improved growth and margin story is still mostly in the future rather than in the reported figures.
  • Non GAAP gross margin at 52% and expectations that profit margins might eventually converge toward a 13.1% industry level underpin the bullish case, but today’s net losses of roughly $381.3 million over the last year show that significant operating leverage still needs to be unlocked.

Bulls who believe in the margin and growth story may see the current 6 times sales multiple as acceptable if those improvements show up in the reported numbers. 🐂 C3.ai Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for C3.ai on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently, and think the story should read another way? Turn that view into a full narrative in minutes, Do it your way.

A great starting point for your C3.ai research is our analysis highlighting 2 important warning signs that could impact your investment decision.

Explore Alternatives

C3.ai’s slowing revenue growth, deepening losses, and premium valuation versus peers underline execution risk and a lack of clear, consistent progress toward profitable scale.

If you want businesses already proving they can grow predictably without this kind of volatility, use our stable growth stocks screener (2079 results) to focus on steadier performers built for compounding returns.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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