C3.ai narrows losses, posts Q1 earnings beat amid revenue decline

C3.ai managed to beat Wall Street estimates on both the top and bottom lines for its fiscal first quarter, narrowing its losses and flipping free cash flow positive for the first time in the company’s public history. The reward for all that progress? Shares trading below $10 in after-hours action. The enterprise AI software company reported total revenue of $52.4 million for the quarter ending July 31, 2026, edging past analyst consensus expectations that ranged between $52.0 million and $52.3 million. The catch: that figure represents a steep decline from the $70.3 million C3.ai pulled in during the same quarter a year ago, a roughly 25% drop that no amount of earnings-beat confetti can fully obscure. The numbers behind the narrowing losses On the profitability front, the picture was more encouraging. C3.ai’s non-GAAP operating loss came in at $36.2 million, which beat the company’s own guidance midpoint by $8.3 million. Non-GAAP net loss per share landed at $0.20, compared to a consensus estimate of $0.25. The standout metric was free cash flow, which turned positive at $2.1 million. For context, C3.ai burned through $34.3 million in the year-ago quarter. Going from negative $34....