C3.ai Stock Plummets on Earnings Miss and Abrupt CEO Change
The enterprise AI firm announced dismal Q1 results and weak guidance, with its chairman calling the performance 'completely unacceptable'.
Shares of C3.ai, Inc. (AI) plunged over 11% in after-hours trading Wednesday following the announcement of disappointing first-quarter financial results and a significant leadership shake-up. The enterprise artificial intelligence company's performance and outlook rattled investors, adding to a month of steep declines.
The company , a substantial miss compared to analyst estimates of $94.58 million. The bottom line fared no better, with an adjusted loss of 37 cents per share, nearly double the 20-cent loss Wall Street had anticipated. The poor results prompted a blunt assessment from the company's leadership.
In a statement, outgoing CEO and Chairman Thomas Siebel , even as he pointed to a restructured sales organization as a path forward. Adding to the upheaval, C3.ai announced it has , effective September 1st, with Siebel transitioning to the role of executive chairman.
Further dampening investor sentiment, C3.ai's guidance for the upcoming quarter also fell significantly short of expectations. The company projected second-quarter revenue between $72 million and $80 million, well below the consensus estimate of $100.71 million. The firm also withdrew its financial guidance for the full fiscal year 2026, creating a cloud of uncertainty around its future performance.
The negative report compounded a difficult period for the company's stock, which had already fallen 28% in the month leading up to the announcement. The sharp after-hours drop signals that investors see significant challenges ahead as the navigates a pivotal transition in leadership and strategy amid a worsening financial picture.