In recent weeks, C3.ai reported disappointing first-quarter fiscal 2026 results, withdrew its full-year guidance, and saw leadership changes, including the appointment of a new CEO, following disclosure of the previous CEO’s health issues and multiple class action lawsuits alleging misleading statements to investors.
An important development is that these challenges, particularly the leadership transition and legal actions, have intensified investor uncertainty about the company’s future direction and financial transparency amid ongoing organizational shifts.
We’ll explore how the leadership change and related legal risks could impact C3.ai’s investment narrative and outlook for scaling enterprise AI adoption.
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To be a shareholder in C3.ai, you need to believe in the long-term adoption of large-scale enterprise AI despite wider industry competition and the company’s ongoing losses. Recent disappointing results, the withdrawal of full-year guidance, a class action lawsuit, and a leadership transition have raised doubts about execution, putting additional pressure on near-term revenue stability. These developments have not materially improved or worsened the core catalyst of scaling enterprise deployments, but they do magnify the key risk of inconsistent performance and sustained unprofitability.
The appointment of Stephen Ehikian as CEO is the most relevant event, reflecting management’s response to internal and market concerns. While intended to address the execution challenges flagged by poor quarterly results and sales leadership restructuring, it also introduces greater uncertainty around continuity, near-term customer retention, and the company’s ability to convert pilots into recurring contracts.
However, investors should also be aware that alongside these changes, the ongoing class action lawsuit may present risk relating to…
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C3.ai’s outlook anticipates $613.6 million in revenue and $80.3 million in earnings by 2028. This scenario assumes annual revenue growth of 16.4% and an increase in earnings of $369 million from the current level of -$288.7 million.
Uncover how C3.ai’s forecasts yield a $14.67 fair value, a 16% downside to its current price.
Seventeen members of the Simply Wall St Community estimate C3.ai’s fair value in a wide US$13 to US$42.60 range. Despite these varied outlooks, recent revenue decline and leadership turnover remain central issues affecting future performance and investor confidence.