C3 AI Stock Drops 30% Amid Revenue Decline, CEO Health Issues

C3 AI, a leading artificial intelligence company, saw its stock price plummet by 30% following the release of its preliminary financial results and the announcement of a global reorganization of its sales and service departments. The company projected that its revenue for the first quarter of the 2026 fiscal year would range between 70.2 million dollars and 70.4 million dollars. These figures are preliminary and unaudited estimates, contrasting with the 87.2 million dollars in revenue reported for the same period last year.

The CEO described the quarter's sales performance as "completely unacceptable," attributing the underperformance to the disruptive impact of the reorganization and ongoing health issues. The company anticipates an operating loss under the U.S. Generally Accepted Accounting Principles (GAAP) of between 124.7 million dollars and 124.9 million dollars for the quarter, a significant increase from the 72.59 million dollars loss reported in the same period last year.

The CEO acknowledged that health issues had hindered their ability to actively participate in the sales process. In retrospect, the CEO believed that more active involvement could have yielded better results. The CEO had previously disclosed being diagnosed with an autoimmune disease earlier this year, which resulted in severe vision impairment. Consequently, the company's board and the CEO have initiated the process to select a new CEO.

Despite these challenges, the CEO reported that their health had improved significantly, apart from the vision impairment. The CEO stated that they are currently in good health and fully committed to their work, aiming to swiftly identify a suitable candidate for the position of CEO. The CEO expressed confidence that the company is well-prepared to accelerate its future development.

The reorganization of the sales and service departments has been completed, and the company is scheduled to hold a conference call to discuss its first-quarter results on September 3 at 5 PM Eastern Time. The CEO's acknowledgment of the health issues and the company's proactive steps to address them reflect a commitment to transparency and strategic planning. The upcoming conference call will provide further insights into the company's plans and strategies for the future, offering investors and stakeholders a clearer picture of C3 AI's trajectory in the competitive AI market.