C3.ai Stock Plummets 30% Following Disastrous Q1 Earnings Report

Why Is C3.Ai Stock Crashing Monday? - C3.ai (NYSE:AI)

C3.ai Inc. AI released preliminary fiscal first-quarter results on Friday that point to a steep miss versus Wall Street expectations, with revenue projected at about $70 million and deep operating losses. The enterprise AI software maker's figures reflect the short-term disruption of the companywide sales and services reorganization completed during the quarter. The stock was down 30% in premarket trading on Monday. Full results and updated fiscal 2026 guidance are due Sept. 3. The company expects first-quarter revenue of $70.2 million to $70.4 million, well below the consensus estimate of $104.1 million, with a GAAP operating loss of $124.7 million to $124.9 million. Also Read: C3.ai Could Be The Next Big AI Winner -- Thanks To Big Tech Ties, Profit Push The projected non-GAAP operating loss is between $57.7 million and $57.9 million, and cash, equivalents, and securities totaled $711.9 million as of quarter-end. CEO Thomas M. Siebel said the leadership transition and his health challenges earlier this year disrupted sales. While acknowledging the quarter's performance was "unacceptable," he expressed confidence in a rebound, citing strong products, market opportunity, and customer satisfaction. Leadership Changes Across Regions New executives include Rob Schilling as executive vice president and chief commercial officer, John Kitchingman as general manager for EMEA, Jeff Cosseboom as group vice president for North America East Sales, and Lars Farnstrom as group vice president for the Nordics. Longtime executive Alex Amato now leads professional and customer services. C3.ai's stock has faced volatility in recent weeks. On July 24, shares dropped following a leadership change announcement that confirmed a CEO transition amid Thomas Siebel's health challenges. Related ETFs: Global X Artificial Intelligence & Technology ETF AIQ, First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT. Price Action: At last check Monday, AI shares were trading lower by 30.1% to $15.44 premarket. Read Next: Nvidia's H20 Chips Under Fire In China Over Security Fears As US Export Deal Sparks Backlash: Report Photo by Poetra.RH via Shutterstock AIC3.ai Inc$15.67-29.2%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum16.39Growth21.33QualityN/AValue54.43Price TrendShortMediumLongOverviewAIQGlobal X Artificial Intelligence & Technology ETF$45.020.24%MSFTMicrosoft Corp$524.300.43%ORCLOracle Corp$249.15-0.36%ROBTFirst Trust Nasdaq Artificial Intelligence and Robotics ETF$50.521.12%Market News and Data brought to you by Benzinga APIs

Why C3.ai Stock Is Cratering Today | The Motley Fool

The artificial intelligence (AI) company is seeing its share price hit after the release of its preliminary numbers for the quarter ending July 31. C3.ai's first-quarter 2026 preliminary numbers showed a net generally accepted accounting principles (GAAP) loss of between $124.7 million and $124.9 million on sales of between $70.2 million and $70.4 million, a nearly 20% decline year over year in its top line and 33% below its previous guidance. D.A. Davidson analyst Gil Luria called the results "catastrophic" and downgraded the rating from neutral to underperform. The company is in the middle of a search for a new CEO after the announcement that Tom Siebel would be stepping down from the role, a major factor in its underwhelming results. Additionally, C3.ai announced that it had completed a significant restructuring of its sales and services divisions to "accelerate growth and increase customer success" after what Siebel called the company's "completely unacceptable" Q1 performance. C3.ai is obviously in some hot water and is struggling to close deals amid the exit of its CEO. I don't want to discount the direction of C3.ai's sales at the moment and its continued unprofitability. If the company names the right person as CEO, there's plenty of reason to believe C3.ai can right the ship. Given how much the share price has dropped, this could present a buying opportunity. C3.ai now trades at a discount compared to some of its closest competitors. Of course, I don't want to imply the stock is cheap in general -- AI stocks are anything but cheap -- but comparatively so.

C3.ai Earnings Shock: 33% Revenue Shortfall Signals Deeper Execution Problems | Investing.com UK

C3.ai (NYSE:AI) Inc. shares plummeted on Monday following the release of preliminary first-quarter results that significantly missed analyst expectations. The enterprise AI application software company reported revenue that fell 33% below guidance, marking a dramatic shortfall that has sent shockwaves through the AI sector. CEO Thomas Siebel attributed the disappointing performance to organizational disruption and personal health issues that impacted his sales involvement. The results have prompted immediate analyst downgrades and raised serious questions about the company's near-term growth prospects. C3.ai's preliminary first-quarter results for the period ended July 31, 2025, revealed a stunning revenue miss that has left investors reeling. The company reported preliminary revenue of just $70.2-$70.4 million, representing a 19% year-over-year decline and falling dramatically short of the expected $104.3 million that Wall Street analysts had projected. This 33% shortfall below guidance represents one of the most significant misses in the company's recent history. The financial damage extends beyond just revenue, with C3.ai reporting a GAAP loss from operations of approximately $124.8 million and a non-GAAP loss from operations of around $57.8 million. These losses highlight the company's continued struggle to achieve profitability despite operating in the rapidly growing AI market. The company's cash position remains relatively strong at $711.9 million, providing some cushion during this challenging period. CEO Thomas Siebel was unusually candid in his assessment, stating that "sales results in Q1 were completely unacceptable." He attributed the poor performance to two primary factors: the disruptive impact of a complete sales and services organization restructuring, and his own health issues that prevented active participation in the sales process. Siebel acknowledged that his reduced involvement may have had a greater impact than previously anticipated. The timing of these results is particularly concerning given the broader AI market's strong performance and investor enthusiasm for AI-related stocks. C3.ai's struggles stand in stark contrast to the sector's overall momentum, raising questions about the company's competitive positioning and execution capabilities in a rapidly evolving market. The market's reaction to C3.ai's preliminary results was swift and brutal, with shares trading down 32.90% to $14.86 as of 7:41 AM EDT on Monday. This dramatic decline came after the stock had already closed down 2.34% at $22.13 in the previous session, indicating that the negative sentiment was building even before the full extent of the poor results became clear. The crash has pushed C3.ai's market capitalization down to approximately $2.97 billion, a significant decline from previous levels. The stock's 52-week range of $17.03 to $45.08 shows the extreme volatility that has characterized the company's performance over the past year. Year-to-date, the stock is now down over 35%, dramatically underperforming the broader market's 8.63% gain. Analyst reactions have been overwhelmingly negative, with DA Davidson's Lucky Schreiner immediately downgrading the stock from Neutral to Underperform and slashing the price target from $25 to $13. The analyst noted the significant miss versus guidance and the extensive organizational restructuring as key concerns. Current analyst price targets range from a low of $13 to a high of $50, with an average target of $28.57, suggesting significant uncertainty about the company's near-term prospects. The company's financial metrics paint a challenging picture, with a trailing twelve-month revenue of $389.06 million but a net loss of $288.7 million, resulting in a diluted EPS of -$2.24. The price-to-sales ratio of 7.62 appears elevated given the company's current growth trajectory and profitability challenges, potentially justifying the market's harsh reaction to the disappointing results. *** Looking to start your trading day ahead of the curve?