C3.ai Reports Strong Q1 Fiscal 2027 Results with Revenue Growth and Restructuring Progress
C3.ai reported fiscal first-quarter revenue of $52.4 million for 2027, surpassing its previous guidance. The company saw a significant increase in bookings (up 73%) and federal bookings (138% year-over-year), driven by enterprise agreements with commercial and government clients including the U.S. Department of Defense. The restructuring efforts led to improved operating efficiency, with non-GAAP gross margin rising from 37% to 50%. Free cash flow turned positive at $2.1 million compared to negative figures in prior periods. CEO Tom Siebel emphasized that these results mark progress toward a turnaround strategy focused on consistent revenue growth and eventual profitability. CFO Hitesh Lath highlighted the shift towards subscription-based revenue, which accounted for 94% of total revenue. The company also announced plans for $135 million in annualized cost savings through restructuring efforts that include reducing headcount by approximately 40%. C3.ai forecasts Q2 fiscal 2027 revenue between $51 million and $55 million, with full-year guidance ranging from $210 million to $240 million.
Topics: bookings free_cash_flow revenue turnaround_strategy workforce_reduction