Key Takeaways
Shares of C3.ai (AI) dipped Thursday, a day after the artificial intelligence software provider replaced its CEO, posted weak results, and withdrew its guidance as it restructured its struggling business.
The company said Stephen Ehikian replaced Thomas Siebel as of Sept. 1. C3.ai called Ehikian a “recognized innovator in the enterprise software industry” who most recently held the position of Acting Administrator of the U.S. General Services Administration. Siebel will remain as Executive Chair.
The company reported a fiscal 2026 first-quarter adjusted loss of $0.37 per share, more than double the estimate of analysts surveyed by Visible Alpha. Revenue sank 19% year-over-year to $70.3 million, also way short of forecasts.
‘Unanticipated Health Issues’ Affected Performance, Former CEO Says
Siebel pointed to two factors behind the poor performance. The first was the disruptive effect of the company’s reorganization, with new sales and services leadership. The second was that he dealt with “a number of unanticipated health issues,” which “prevented me from participating in the sales process as actively as I have in the past.” Siebel noted that his involvement in sales “may have had a greater impact than I previously thought.”
C3.ai anticipates a current-quarter adjusted loss from operations of $49.5 million to $57.5 million, bigger than what analysts expected. It also withdrew its full-year outlook, “given the appointment of a new Chief Executive Officer and the recent restructuring of the sales and services organizations.”
Wedbush wrote to clients that even with a new CEO, “the company still has significant hurdles to overcome to regain the Street’s confidence given the weakness in its operational performance following the sales restructuring.” The analysts maintained their “outperform” rating, but lowered the price target to $20 from $23, “reflecting a lower multiple as the company looks to reverse its current path with new leadership at the helm.”
C3.ai shares recently were down more than 4% to trade at their lowest level since early 2023.