C3.ai (NYSE:AI) shares plunged 30% Monday after the enterprise AI software provider released preliminary fiscal first-quarter results that sharply undershot analyst expectations.
The company projected revenue between $70.2 million and $70.4 million for the quarter ended July 31, 2025 — about 33% below its own guidance and a 19% drop from the prior year. Analysts had been looking for around $104.3 million.
C3.ai also reported an estimated GAAP operating loss of roughly $124.8 million and a non-GAAP operating loss of about $57.8 million. The company ended the quarter with $711.9 million in cash, equivalents, and marketable securities.
CEO Thomas Siebel blamed the weak results on two key issues: the complete restructuring of C3.ai’s sales and services organization, and his own health-related absence from sales activities. “The bad news is that sales results in Q1 were completely unacceptable,” Siebel said in the release.
As part of its restructuring, the company appointed several new executives, including Rob Schilling as EVP and Chief Commercial Officer, and introduced fresh leadership across multiple regions.
In response to the disappointing update, DA Davidson analyst Lucky Schreiner downgraded the stock from Neutral to Underperform and slashed the price target from $25 to $13, citing the severe revenue shortfall and the broad organizational shakeup.
C3.ai plans to release its full financial results and revised fiscal 2026 guidance on September 3, 2025.
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