C3.ai Shares Plummet 7.31% on Leadership Shift and Weak Earnings as $460M Volume Ranks 219th

C3.ai (AI) shares plummeted 7.31% on Sept. 4, with a trading volume of $460 million, marking a 67.01% surge from the prior day. The stock ranked 219th in trading activity across the market.

The selloff followed C3.ai’s announcement of a leadership overhaul and underwhelming financial results. Stephen Ehikian, former Acting Administrator of the U.S. General Services Administration, replaced founder Thomas Siebel as CEO, who will remain as Executive Chair. The company reported a fiscal Q1 2026 adjusted loss of $0.37 per share—double analyst estimates—and revenue of $70.3 million, a 19% year-over-year decline. Siebel attributed the performance to operational disruptions during restructuring and unanticipated health issues that limited his sales involvement.

C3.ai withdrew its full-year guidance, citing ongoing organizational changes and weak operational trends. Analysts highlighted significant challenges ahead, with Wedbush lowering its price target to $20 from $23 despite maintaining an "outperform" rating. The firm noted the company must rebuild credibility after the sales team reorganization and leadership transition.

The stock has lost over 50% of its value year-to-date. GuruFocus estimates a one-year target of $23.62, implying a 41.63% upside from its current price of $16.68. However, recent guidance for Q2 2026 suggests continued losses, with adjusted operational losses projected between $49.5 million and $57.5 million.

C3.ai anticipates providing updated forecasts with Q2 results. The company’s ability to stabilize operations under Ehikian will be critical in determining its path forward in the competitive AI software sector.