Revenue has contracted for five straight quarters, falling to $52.4M in 2027Q1, while gross margin has eroded to 31.8% and operating losses have ballooned to -187.6% of revenue due to a misaligned cost structure.
C3.ai, Inc. (AI) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Apr'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 |
|---|
| Sales/Revenue | 232.38M | 250.27M | 389.06M | 310.58M | 266.8M | 252.76M | 183.22M | 156.67M | 91.61M |
| Revenue Growth % | -37.55% | -35.67% | 25.27% | 16.41% | 5.55% | 37.96% | 16.95% | 71.02% | - |
| Cost of Goods Sold | 164.78M | 172.89M | 153.19M | 132.02M | 86.34M | 63.71M | 44.52M | 38.79M | 30.39M |
| COGS % of Revenue | - | 69.08% | 39.38% | 42.51% | 32.36% | 25.21% | 24.3% | 24.76% | 33.17% |
| Gross Profit | 67.61M | 77.38M | 235.86M | 178.56M | 180.46M | 189.05M | 138.7M | 117.88M | 61.22M |
| Gross Margin % | 29.09% | 30.92% | 60.62% | 57.49% | 67.64% | 74.79% | 75.7% | 75.24% | 66.83% |
| Gross Profit Growth % | - | -67.19% | 32.09% | -1.05% | -4.54% | 36.3% | 17.66% | 92.55% | - |
| Operating Expenses | 528.73M | 565.05M | 560.29M | 496.9M | 470.95M | 385.17M | 198.96M | 189.38M | 97.26M |
| OpEx % of Revenue | - | 225.78% | 144.01% | 159.99% | 176.52% | 152.39% | 108.59% | 120.88% | 106.17% |
| Selling, General & Admin | 317.04M | 335.96M | 333.9M | 295.54M | 260.29M | 234.62M | 130.1M | 124.83M | 59.94M |
| SG&A % of Revenue | - | 134.24% | 85.82% | 95.16% | 97.56% | 92.83% | 71.01% | 79.68% | 65.44% |
| Research & Development | 210.99M | 229.09M | 226.39M | 201.37M | 210.66M | 150.54M | 68.86M | 64.55M | 37.32M |
| R&D % of Revenue | - | 91.54% | 58.19% | 64.83% | 78.96% | 59.56% | 37.58% | 41.2% | 40.74% |
| Other Operating Expenses | 698K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -461.12M | -487.67M | -324.42M | -318.34M | -290.49M | -196.12M | -60.26M | -71.5M | -36.04M |
| Operating Margin % | -198.43% | -194.86% | -83.39% | -102.5% | -108.88% | -77.59% | -32.89% | -45.64% | -39.34% |
| Operating Income Growth % | - | -50.32% | -1.91% | -9.59% | -48.12% | -225.47% | 15.72% | -98.37% | - |
| EBITDA | -456.05M | -474.12M | -311.82M | -305.62M | -284.4M | -190.93M | -55.96M | -70.19M | -35.49M |
| EBITDA Margin % | -196.25% | -189.44% | -80.15% | -98.4% | -106.6% | -75.54% | -30.54% | -44.81% | -38.74% |
| EBITDA Growth % | -25.37% | -52.05% | -2.03% | -7.46% | -48.96% | -241.19% | 20.28% | -97.78% | - |
| D&A (Non-Cash Add-back) | 10.2M | 13.55M | 12.61M | 12.72M | 6.09M | 5.19M | 4.3M | 1.3M | 550K |
| EBIT | -445.73M | -469.55M | -287.73M | -278.9M | -268.16M | -191.28M | -60.26M | -71.5M | -36.04M |
| Net Interest Income | 26.18M | 28.45M | 36.19M | 40.08M | 21.98M | 1.83M | 1.25M | 4.25M | 3.51M |
| Interest Income | 26.18M | 28.45M | 36.19M | 40.08M | 21.98M | 1.83M | 1.25M | 4.25M | 3.51M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 15.39M | 18.12M | 36.7M | 39.44M | 22.33M | 4.85M | 5.27M | 2.5M | 2.96M |
| Pretax Income | -445.73M | -469.55M | -287.73M | -278.9M | -268.16M | -191.28M | -54.99M | -69M | -33.08M |
| Pretax Margin % | -191.81% | -187.62% | -73.95% | -89.8% | -100.51% | -75.68% | -30.01% | -44.04% | -36.11% |
| Income Tax | 685K | 822K | 976K | 792K | 675K | 789K | 704K | 380K | 266K |
| Effective Tax Rate % | -0.15% | -0.18% | -0.34% | -0.28% | -0.25% | -0.41% | -1.28% | -0.55% | -0.8% |
| Net Income | -446.41M | -470.37M | -288.7M | -279.7M | -268.84M | -192.06M | -55.7M | -69.38M | -33.35M |
| Net Margin % | -192.1% | -187.95% | -74.21% | -90.06% | -100.77% | -75.99% | -30.4% | -44.28% | -36.4% |
| Net Income Growth % | -30.28% | -62.93% | -3.22% | -4.04% | -39.97% | -244.85% | 19.72% | -108.05% | - |
| Net Income (Continuing) | -446.41M | -470.37M | -288.7M | -279.7M | -268.84M | -192.06M | -55.7M | -69.38M | -33.35M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.88 | -3.35 | -2.24 | -2.34 | -2.45 | -1.84 | -0.90 | -0.73 | -0.45 |
| EPS Growth % | -18.85% | -49.55% | 4.27% | 4.49% | -33.15% | -104.44% | -23.29% | -62.22% | - |
| EPS (Basic) | - | -3.35 | -2.24 | -2.34 | -2.45 | -1.84 | -0.90 | -0.73 | -0.45 |
| Diluted Shares Outstanding | 155M | 140.51M | 129.09M | 119.36M | 109.85M | 104.4M | 56.68M | 95.16M | 73.55M |
| Basic Shares Outstanding | 155M | 140.51M | 129.09M | 119.36M | 109.85M | 104.4M | 56.68M | 95.16M | 73.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AI stock.
For fiscal year 2026, C3.ai, Inc. (AI) reported total revenue of $250.3M. This represents a 173.2% increase compared to $91.6M in 2019.
C3.ai, Inc. (AI) reported a net loss of $470.4M for the fiscal year ending 2026.
C3.ai, Inc. (AI) reported an operating income of $-487.7M, resulting in an operating profit margin of -194.9%. This margin reflects the operational efficiency of the business before interest and taxes.
C3.ai, Inc. (AI) generated $77.4M in gross profit for the year, representing a gross profit margin of 30.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Liquidity crunch from cash burn
Metrics are mathematically derived from official filings.
Revenue Collapse Amid Model Transition
C3.ai's revenue has contracted sharply for five consecutive quarters, with the most recent 2027Q1 figure of $52.4M representing a -25.5% year-over-year decline, a trend that appears directly tied to its strategic pivot to a consumption-based pricing model.
The sustained revenue decline from a peak of $108.7M in 2025Q4 to the current $52.4M indicates a severe operational reset, not merely a cyclical dip. This trajectory suggests the transition from high-value, multi-year subscriptions to a consumption-based model is creating a significant 'revenue valley' as existing contracts roll off and new ones are recognized differently. The durability of future growth is highly uncertain, as the company must now prove it can rebuild its top line on a fundamentally different commercial foundation.
Gross Margin Erosion Signals Structural Shift
Gross margin has collapsed from a peak of 62.1% in 2025Q4 to just 31.8% in 2027Q1, a dramatic compression that suggests the new revenue mix carries a significantly higher cost of delivery, likely due to increased professional services or cloud infrastructure costs.
The halving of gross margin in roughly a year is a critical red flag, indicating that the company's 'software-defined' advantage is not yet translating into scalable, high-margin economics. This margin profile now resembles that of a specialized IT services firm rather than a pure-play SaaS company, which fundamentally alters the investment thesis. Investors should monitor whether this margin level is a temporary artifact of the transition or a new, lower structural baseline that will impede any path to profitability.
Negative Operating Leverage Amplifies Losses
Operating losses have widened dramatically, with the operating margin deteriorating to -187.6% in 2027Q1, indicating that the company's high fixed-cost structure in R&D and SG&A is not scaling down in line with the collapsing revenue base.
The data shows a complete absence of positive operating leverage; as revenue has fallen, operating losses have expanded in absolute terms, from -$89.0M in 2025Q4 to -$98.3M in 2027Q1. This implies that management has been unable or unwilling to make proportionate cuts to its overhead, likely in an attempt to preserve long-term product development and sales capabilities. The result is a business that is burning cash at an accelerating rate relative to its shrinking top line, a dynamic that is unsustainable without a rapid revenue recovery or significant restructuring.
Fixed Cost Burden Overwhelms Shrinking Revenue
In 2027Q1, combined R&D and SG&A expenses of $114.2M were more than double the total revenue of $52.4M, highlighting a cost structure that is fundamentally misaligned with the current scale of the business.
The primary cost drivers remain R&D ($46.5M) and SG&A ($67.7M), which together consume over 200% of revenue. This suggests management is maintaining a significant investment posture despite the revenue contraction, perhaps betting on a future inflection. However, the current burn rate against a cash position of $66.2M (as per recent context) creates a clear liquidity risk, forcing a choice between aggressive cost-cutting that could harm future prospects or a potentially dilutive capital raise.
2026 Marks a Painful Strategic Inflection
The year 2026 represents a clear operational inflection point, characterized by the simultaneous collapse in revenue growth, gross margin, and the onset of severe negative operating leverage, all stemming from the deliberate business model transition.
Prior to 2026, the company exhibited positive revenue growth and gross margins near 60%. The inflection in 2026Q1, where revenue growth turned negative and margins began their steep descent, marks the moment the strategic pivot began to materially impact financials. The lasting impact is a complete reset of the company's financial profile, moving it from a high-growth, high-margin software story to a loss-making entity in a state of operational flux, with the ultimate success of this pivot now the central question for investors.
Services-Like Economics Undermine AI Software Narrative
The strongest bear case is that C3.ai's 30.92% gross margin and revenue decline reveal it is not a scalable software platform but a high-cost IT consultancy, making its premium valuation and 'AI' branding fundamentally disconnected from its operational reality.
Short-sellers would focus on the gross margin as definitive proof that the company's 'Type System' moat requires extensive, low-margin professional services to implement, negating any software scalability advantage. The -35.67% revenue decline, even during a period of massive AI hype, suggests the product may be too complex or its value proposition too unclear for broad adoption. This narrative posits that the company is trapped in a vicious cycle: it needs high revenue to cover its fixed costs, but its cost structure prevents it from being competitive on price or implementation speed, leading to further customer churn and revenue contraction.