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Investing.com -- C3.ai posted a narrower fiscal second-quarter loss and slightly topped revenue expectations, helped by a sharp pickup in federal-sector demand and stronger partner-driven deal activity.
The company reported an adjusted loss of $0.25 per share, beating analysts’ expectations of a $0.33 loss. Revenue came in at $75.1 million, just above the $74.93 million consensus, and up 7% sequentially.
Shares rose about 1.2% in extended trading.
CEO Stephen Ehikian said growth was underpinned by “excellent performance” in federal accounts and rising large-deal activity, calling the federal market a “large growth vector.”
Federal bookings jumped 89% year over year, even with disruption from the government shutdown, and accounted for 45% of total bookings. The company signed new or expanded agreements with agencies including the U.S. Department of Health and Human Services, the U.S. Army, Naval Air Warfare Center, and the U.S. Intelligence Community.
Overall bookings rose 49% quarter-on-quarter, with 17 deals over $1 million and six above $5 million. About 89% of all bookings flowed through C3.ai’s partner ecosystem, including Microsoft, AWS, and Booz Allen Hamilton. The joint Microsoft pipeline rose 146% year over year, while the AWS pipeline increased 172%.
Subscription revenue, which makes up the bulk of the business, was $70.2 million, or 93% of total revenue. GAAP gross margin was 40%, and non-GAAP gross margin reached 54%. The company ended the quarter with $675 million in cash and marketable securities.
For fiscal 2026, C3.ai guided revenue to $289.5–309.5 million, bracketing the $299.5 million analyst consensus. For the current quarter, it expects $72–80 million in revenue, compared with expectations of $75.6 million.
Ehikian said the company has set “precise operational objectives” across business units and sees a “clear pathway” toward a return to growth, cash generation and non-GAAP profitability.