Key Stats for C3 AI Stock
- 1-day Price Change for $AI stock: -26%
- Current Share Price: $16.5
- 52-Week High: $45
- C3.ai Stock Price Target: $27.43
What Happened?
C3.ai (AI) shares plummeted nearly 26% on Monday after the enterprise artificial intelligence company announced preliminary first-quarter results showing a devastating revenue decline.
C3.ai expects to report revenue between $70.2 million and $70.4 million for its fiscal first quarter 2026, down sharply from $87.2 million in the same period last year, a decline of approximately 19%.
Comparatively, analysts forecasted C3.ai stock to report revenue of $101.7 million and an adjusted loss of $0.15 per share in the quarter ended in July.
CEO Thomas Siebel called the sales results “completely unacceptable.” He attributed the poor performance to two main factors: the disruptive effect of restructuring the company’s global sales and services organization, and his ongoing health issues, including an autoimmune disease that has caused “significant visual impairment.”
Siebel acknowledged that his reduced participation in the sales process had a greater impact than previously thought.
C3.ai also expects to report a GAAP loss from operations between $124.7 million and $124.9 million, substantially wider than the $72.59 million loss in the same quarter last year.
C3.ai has completed its sales restructuring and brought in new leadership, including Rob Schilling as EVP and Chief Commercial Officer. Rob has previously held senior leadership roles at Oracle and SAP.
See analysts’ growth forecasts and price targets for C3.ai stock (It’s free!) >>>
What the Market Is Telling Us About AI Stock
The massive sell-off in AI stock signals deep investor concerns about C3.ai’s ability to execute during a critical period for enterprise AI adoption.
The 19% revenue decline is alarming given the broader AI market boom, suggesting the company is failing to capitalize on what should be a favorable environment for AI software providers.
Siebel’s health issues and the leadership uncertainty, with an active CEO search underway, add another layer of concern for AI stock investors. The timing couldn’t be worse as C3.ai faces intense competition from tech giants and well-funded startups in the enterprise AI space.
However, C3.ai maintains a strong balance sheet with $712 million in cash and has now completed its organizational restructuring with experienced new leadership in place.
Siebel reported his health has “improved dramatically” except for vision impairment, and expressed confidence the company is “positioned to accelerate going forward” with new leadership and completed restructuring.
The market’s harsh reaction to C3.ai stock reflects the high stakes in the rapidly evolving AI sector, where execution missteps can quickly erode competitive positioning and investor confidence.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
