Core Insights - C3.ai, Inc. reported a narrower adjusted loss per share of 37 cents for Q1 FY26, compared to a loss of five cents in the same quarter last year, but slightly better than the Zacks Consensus Estimate of 38 cents [3][8] - Revenues for the quarter were $70.3 million, missing the consensus estimate of $91 million by 22.7% and down 19.4% year over year [3][8] - The company anticipates a gloomy outlook for Q2 FY26, projecting revenues between $72 million and $80 million, which represents a decline of 15% to 24% from $94.3 million reported in the same quarter last year [6][8] Financial Performance - Subscription revenues decreased to $60.3 million from $73.5 million year over year, while Professional services revenues fell by 27.6% to $10 million [4] - Adjusted gross profit declined to $36.3 million from $60.9 million year over year, with the adjusted gross margin contracting by 1,800 basis points to 52% [4] - The company had cash and cash equivalents of $80.9 million at the end of Q1 FY26, down from $164.4 million at the end of FY25 [5] Cash Flow and Operating Activities - Net cash used in operating activities was $33.5 million for Q1 FY26, compared to net cash provided of $8 million in the same period last year [5] - Free cash flow was negative at $34.3 million, a decline from $7.1 million at the end of the previous year [5] Market Reaction - Following the earnings release, AI stock fell by 11.8% in after-market trading, reflecting negative investor sentiment due to the disappointing quarterly performance and outlook [2][8]