Investing.com — C3.ai (NYSE:AI) stock plummeted 30% Monday after the enterprise AI application software company released preliminary first quarter results that significantly missed analyst expectations.
The company reported preliminary revenue of $70.2 million to $70.4 million for the quarter ended July 31, 2025, falling 33% below guidance and representing a 19% decline YoY. Wall Street analysts had expected revenue of $104.3 million.
C3.ai also reported a GAAP loss from operations of approximately $124.8 million and a non-GAAP loss from operations of around $57.8 million. The company disclosed it had $711.9 million in cash, cash equivalents, and marketable securities at quarter-end.
CEO Thomas Siebel attributed the disappointing results to two main factors: disruption from a complete restructuring of the company’s sales and services organization, and his own health issues that prevented his active involvement in sales processes.
“The bad news is that sales results in Q1 were completely unacceptable,” Siebel stated in the release. The company announced several new executive appointments, including Rob Schilling as EVP and Chief Commercial Officer, along with new regional leadership.
Following the results, DA Davidson analyst Lucky Schreiner downgraded C3.ai from Neutral to Underperform, lowering the price target from $25 to $13. “preliminary results this past Friday after the close that came in significantly below guidance. The company also announced a restructured sales and services organization bringing in new leaders across regions,” noted Schreiner.
C3.ai plans to provide complete financial results and updated fiscal 2026 guidance on September 3, 2025.
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