C3.ai stock falls 5% on weak Q2 revenue guidance despite Q1 beat

C3.ai reported first quarter fiscal 2027 results on <date>, exceeding analyst expectations, but its stock slipped 5.8% as revenue guidance fell short of Wall Street estimates. The enterprise AI software firm posted a loss per share of -$0.20, beating the -$0.25 consensus estimate. Revenue hit $52.4 million, only slightly above the $52.3 million analyst consensus, marking a 25% year-over-year decline.

Subscription revenue constituted 94% of total revenue at $49.2 million. For the second quarter of fiscal 2027, the company warned of revenue guidance between $51 million and $55 million, far below the $56.6 million analyst consensus. Full-year fiscal 2027 revenue guidance spanned $210 million to $240 million, with a midpoint of $225 million surpassing the $224.3 million consensus estimate.

C3.ai's CEO, Thomas M. Siebel, emphasized the company's commitment to growth, profitability, technology leadership, and customer satisfaction. The firm reported positive free cash flow of $2.1 million and reduced its adjusted operating loss to $36.2 million, a 33% improvement from the previous quarter. Bookings rose 73% sequentially, with 22 new agreements signed, including deals with Heidelberg Materials, Ford Motor Company, and Johnson & Johnson. The company's cash position stood at $651.1 million, up $76 million from the prior quarter.