C3.ai (AI) stock declined about 14% after the company reported weak results for the first quarter of Fiscal 2026. The enterprise AI software firm also withdrew its full-year guidance as it works through leadership changes and a sales strategy overhaul to boost growth.
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The company reported revenue of $70.3 million, down 19.3% year over year. Also, it missed Street’s expectations of $93.8 million. Further, C3.ai delivered a net loss of $0.37 per share, much wider than the consensus estimate of a net loss of $0.21. It compared unfavorably with last year’s net loss of $0.05 per share.
C3.AI’s Leadership Overhaul
Founder Thomas M. Siebel acknowledged the quarter’s poor performance, calling it “completely unacceptable.” He attributed the results to two key factors: short-term disruption from a major reorganization of the sales and services teams, and his own reduced involvement due to unexpected health issues.
To address these challenges, C3.ai has appointed Stephen Ehikian as its new CEO, effective September 1. With experience in both public and private sector AI deployments, Ehikian is expected to lead the company into its next phase of growth.
Also, Siebel will continue to serve as executive chairman, focusing on strategic partnerships and product direction.
Full-Year Guidance Pulled
The company has withdrawn its full-year guidance, citing leadership changes and organizational restructuring. It plans to provide updated forecasts while releasing Q2 results in December.
For the fiscal second quarter, C3.ai projects revenue between $72 and $80 million, which is far below the consensus estimate of $99.6 million. Also, the company expects adjusted loss from operations in the range of -$49.5 million to -$57.5 million.
What Is the Price Target for AI?
Turning to Wall Street, analysts have a Hold consensus rating on C3.ai stock based on three Buys, five Holds, and two Sells assigned in the past three months. Furthermore, the average C3.ai price target of $23.63 per share implies 41.67% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
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