C3.ai Stock Down 25% After CEO Calls Preliminary Sales Figures "Completely Unacceptable"

C3.ai stock plummeted 25% after the AI software provider posted preliminary sales figures that fell short of expectations, with CEO Tom Siebel calling the results "completely unacceptable." The company expects a loss of $57.7-$57.9 million and revenue of $70.2-$70.4 million for Q1, down from $87.2 million last year. Siebel blamed a reorganization and his health issues for the poor performance. The stock has lost over half its value this year.

C3.ai (NYSE:AI) stock experienced a significant downturn of 25% on Monday, July 2, 2025, following the release of preliminary sales figures for the first quarter of 2026. The AI software provider reported revenue expectations between $70.2 million and $70.4 million, a substantial decline from the $87.2 million generated during the same period last year. The company also expects a GAAP loss from operations of $57.7 million to $57.9 million, marking a significant setback from the previous year's loss of $72.59 million.

CEO Thomas M. Siebel attributed the poor performance to a reorganization of the global sales and services organization and his ongoing health issues. Siebel announced in July that he was diagnosed with an autoimmune disease, which has caused significant visual impairment and limited his involvement in the sales process. Despite his health challenges, Siebel expressed confidence in the company's future, stating that he is feeling strong and fully engaged in the search for a new CEO.

The stock's decline comes amidst broader market trends and investor sentiment surrounding the artificial intelligence sector. C3.ai faces profitability challenges, with negative earnings, but maintains strong liquidity with a current ratio of 6.86. The company has seen robust revenue growth of 25.27% over the past year, indicating potential for future growth despite current setbacks.

Analysts have responded to the results with varying degrees of caution. DA Davidson downgraded C3.ai to Underperform from Neutral, reducing its price target to $13.00 from $25.00. Wolfe Research reiterated its Underperform rating with a $15.00 price target, expressing concerns over the lack of reiterated guidance in a recent 8-K filing. Wedbush lowered its price target on C3.ai to $23.00 from $35.00 while maintaining an Outperform rating, attributing the adjustment to what it described as "a brutal quarter" for the company. Needham maintained its Hold rating, noting the revenue miss.

C3.ai's stock has lost over half its value this year, hitting a 52-week low of 15.23 USD. The company continues to focus on expanding its AI solutions and partnerships to drive future growth, with Siebel emphasizing the company's position to accelerate going forward.

References:
[1] https://ca.investing.com/news/company-news/c3ai-stock-hits-52week-low-at-1523-usd-93CH-4150124
[2] https://www.investors.com/news/technology/ai-stock-dives-c3-ai-q1-preliminary-revenue-loss/
[3] https://www.marketscreener.com/news/dog-centric-firm-bark-q1-revenue-beats-expectations-ce7c5edfdd8cf725
[4] https://www.cnbc.com/2025/08/11/c3-ai-stock-ceo-thomas-siebel.html