Core Viewpoint - C3.ai, Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its growth and the impact of its CEO's health on the company's performance, leading to a significant drop in stock price following disappointing financial results [1][2]. Summary by Sections Allegations - The complaint claims that C3.ai's management provided overly positive statements while concealing material adverse facts about the company's growth, particularly the CEO's health affecting deal closures and overall performance [1]. - On August 8, 2025, C3.ai announced disappointing preliminary financial results for Q1 of fiscal 2026 and reduced its revenue guidance for the full fiscal year 2026, attributing these issues to "the reorganization with new leadership" and the CEO's health [1]. Stock Price Impact - Following the announcement on August 8, 2025, C3.ai's stock price fell from $22.13 per share to $16.47 per share by August 11, 2025, marking a decline of approximately 25.58% in just one day [1]. Class Action Details - Shareholders who purchased shares during the class period from February 26, 2025, to August 8, 2025, are encouraged to register for the class action, with a deadline for lead plaintiff appointment set for October 21, 2025 [2]. - Registered shareholders will receive updates through portfolio monitoring software throughout the case lifecycle [2]. Law Firm Information - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud, seeking recovery for losses incurred due to misleading statements by companies [3].

Core Viewpoint - The S&P 500 is experiencing a recovery after a challenging start to 2025, with expectations for continued growth driven by the AI boom and moderate economic strength [1][2][3]. Economic Indicators - U.S. GDP grew by 3.3% in Q2 2025, rebounding from a 0.5% decline in Q1, with consumer spending and private investment showing stronger-than-expected performance [3]. - The anticipated Federal Reserve interest rate cuts could further support market growth, with a 91.6% probability of a 25-basis point cut in September [7]. Corporate Earnings - The Q2 earnings season shows positive trends, with S&P 500 earnings expected to grow by 8.9% in 2025, 12.1% in 2026, and 13.8% in 2027 [4]. - The "Magnificent 7" tech stocks (NVIDIA, Microsoft, Apple, Alphabet, Meta, Amazon, Tesla) are projected to drive significant earnings growth, with a 25.1% increase in Q2 earnings compared to the previous year [5][6]. AI Impact - The "Magnificent 7" stocks account for approximately 35% of the S&P 500 market capitalization and are expected to contribute 24.9% of total S&P 500 earnings in 2025 [5][6]. - Total earnings for the "Magnificent 7" are expected to increase by 16.9% in 2025, supported by a 10.3% rise in revenues [6]. Investment Opportunities - Investors may consider S&P 500 ETFs such as Vanguard S&P 500 ETF (VOO), iShares Core S&P 500 ETF (IVV), and SPDR S&P 500 ETF Trust (SPY) for exposure to the index [8]. - For growth exposure, SPDR Portfolio S&P 500 Growth ETF (SPYG) is recommended, while SPDR Portfolio S&P 500 Value ETF (SPYV) caters to value investors [9]. - Leveraged S&P 500 ETFs like Direxion Daily S&P 500 Bull 3X Shares (SPXL) are available for those willing to take on higher risk [10].

Market Movements - As of the report, U.S. stock index futures showed mixed results with Dow futures down 0.04%, S&P 500 futures up 0.17%, and Nasdaq futures up 0.18% [1] - European indices also experienced gains, with Germany's DAX up 0.81%, UK's FTSE 100 up 0.17%, and the Euro Stoxx 50 up 0.39% [2][3] Oil Prices - WTI crude oil prices fell by 0.92% to $63.38 per barrel, while Brent crude oil prices decreased by 0.93% to $66.97 per barrel [3][4] Economic Concerns - Wall Street is increasingly worried about the independence of the Federal Reserve amid President Trump's attempts to influence it, with a 93% risk of recession indicated by UBS based on hard data from May to July 2025 [5] - UBS described the current economic situation as "stable but high risk," with credit market pressures raising the likelihood of recession to 41% [5] Federal Reserve Insights - Minneapolis Fed President Kashkari warned that tariffs are pushing up commodity inflation, complicating the Fed's goal of achieving a 2% inflation rate [6] - Atlanta Fed President Bostic supports a modest rate cut this year, contingent on future inflation and employment data [6] Gold Price Predictions - Goldman Sachs analysts predict that if the Fed's credibility is damaged, gold prices could soar, with a basic forecast of $4,000 per ounce by mid-2026 and a tail risk scenario suggesting prices could approach $5,000 per ounce [6] Small-Cap Stocks - The rebound in U.S. small-cap stocks has stalled due to concerns over interest rate cuts not being sufficient to support heavily indebted companies [7] - Analysts are focusing on profitable small-cap companies that can thrive in uncertain environments [7] Company News - Tesla announced the public launch of its Robotaxi service, expanding from a limited user base to a broader audience [8] - Apple plans to launch an AI-driven search tool next year to compete with OpenAI, integrating it into Siri and potentially other platforms [8] - Salesforce reported Q2 revenue growth of 9.8% to $10.2 billion, slightly above expectations, but its Q3 revenue outlook is below Wall Street's average forecast [9] - C3.ai's Q1 revenue fell to $70.3 million, down from $87.2 million year-over-year, raising concerns about its financial health [10] - Figma's Q2 revenue growth of 41% to approximately $249.6 million was below analyst expectations, leading to a significant drop in its stock price [10]

Group 1 - The lawsuit against C3.ai, Inc. involves allegations of failing to disclose material information during the Class Period, violating federal securities laws [3] - The Class Period for the lawsuit is defined as from February 26, 2025, to August 8, 2025, and investors have until October 21, 2025, to file lead plaintiff applications [1][3] - Following the disclosure of disappointing preliminary financial results for Q1 2026 and a reduction in revenue guidance, C3's share price dropped approximately 25.58%, from $22.13 on August 8, 2025, to $16.47 on August 11, 2025 [4] Group 2 - The lawsuit is identified as John Liggett Sr. v. C3.ai, Inc., et al., No. 25-cv-07129, and is pending in the United States District Court for the Northern District of California [4] - ClaimsFiler provides a free service to help retail investors recover funds from securities class action settlements, offering resources for timely claims submission and legal evaluations [5]

Core Viewpoint - C3.ai has appointed Stephen Ehikian as the new CEO amid mixed financial results, highlighting leadership changes and financial challenges faced by the company [1][8]. Financial Performance - The company reported Q1 FY2026 revenue of $70.3 million, down from $87.2 million year-over-year, indicating a significant decline [1][2]. - Cash flow remained strong at $711.9 million, providing sufficient funding for the company's transformation efforts [1]. - Operating losses widened significantly, with free cash flow dropping from a positive $7.1 million in Q1 FY2025 to a negative $34.3 million in Q1 FY2026 [1][2]. Revenue Structure - Subscription revenue accounted for 86% of total revenue, slightly up from 84% in the previous year, but growth was insufficient to cover rising operational costs [2]. - Revenue decreased compared to $108.7 million in Q4 FY2025, reflecting a substantial year-over-year decline [2]. Customer Distribution - The manufacturing sector became the largest industry segment, accounting for 46% of bookings, while federal, defense, and aerospace dropped to 28% from 31% year-over-year [4]. - The company focuses on acquiring large enterprises, with initial deployments primarily from companies with annual revenues between $1 billion and $100 billion [4]. - The highest adoption of generative AI deployments was in the federal, defense, and aerospace sectors at 33.3% [4]. Strategic Partnerships - C3.ai's partner ecosystem remains a strategic focus, achieving 40 agreements and a 54% year-over-year increase in qualified opportunity channels [6]. - The partnership with Microsoft continues to be effective, resulting in 24 agreements this quarter [6]. Future Outlook - For Q2 FY2026, C3.ai expects revenue between $72 million and $80 million, representing a year-over-year decline of 15% to 24% [6]. - The company has withdrawn its previous full-year guidance for FY2026 due to the new CEO's appointment and ongoing restructuring efforts [6]. Leadership Changes - The previous CEO, Thomas Siebel, faced health issues that impacted the company's performance, leading to a significant drop in stock price [8]. - New CEO Stephen Ehikian emphasizes the company's potential in the AI and enterprise software market, aiming to capture a larger market share [8]. Stock Performance - Following the earnings report, C3.ai's stock fell nearly 12%, trading at $14.69 [9].

SAN DIEGO, Sept. 3, 2025 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP announces that the C3.ai class action lawsuit – captioned Liggett v. C3.ai, Inc., No. 25-cv-07129 (N.D. Cal.) – seeks to represent purchasers or acquirers of C3.ai, Inc. (NYSE: AI) securities and charges C3.ai as well as certain of C3.ai's top executives with violations of the Securities Exchange Act of 1934.If you suffered substantial losses and wish to serve as lead plaintiff of the C3.ai class action lawsuit, please provide your in ...

Group 1 - C3.ai reported a quarterly loss of $0.37 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.38, but worse than a loss of $0.05 per share a year ago, representing an earnings surprise of +2.63% [1] - The company posted revenues of $70.26 million for the quarter ended July 2025, missing the Zacks Consensus Estimate by 0.11%, and down from $87.21 million year-over-year [2] - C3.ai shares have declined approximately 51.2% since the beginning of the year, contrasting with the S&P 500's gain of 9.1% [3] Group 2 - The earnings outlook for C3.ai is uncertain, with current consensus EPS estimates of -$0.20 on revenues of $95.85 million for the upcoming quarter and -$1.39 on revenues of $398.59 million for the current fiscal year [7] - The Zacks Industry Rank places the Computers - IT Services sector in the bottom 37% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] Group 3 - C3.ai has surpassed consensus EPS estimates four times over the last four quarters, but the trend of estimate revisions has been unfavorable leading to a Zacks Rank 4 (Sell) for the stock [2][6] - The company has topped consensus revenue estimates three times over the last four quarters, but the recent earnings report may influence future estimate revisions [2][6]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $70.3 million, a decrease of 19% year over year [4] - Subscription revenue was $60.3 million, representing 86% of total revenue [4] - Non-GAAP gross profit was $36.3 million, with a non-GAAP gross margin of 52% [8] - Non-GAAP operating loss for the quarter was $57.8 million, and non-GAAP net loss was $49.8 million, translating to a net loss per share of $0.37 [9] - Free cash flow for the quarter was negative $34.3 million, with cash, cash equivalents, and marketable securities totaling $711.9 million at the end of the quarter [9] Business Line Data and Key Metrics Changes - Revenue from software licenses was $17.9 million, sequentially lower by $15.9 million [5] - Professional services revenue was $10 million, with $8.7 million from Prioritized Engineering Services (PES), accounting for 14% of total revenue [5] - Combined subscription and PES revenue was $69 million, representing 98% of total revenue [5] Market Data and Key Metrics Changes - The company signed 28 initial production deployments (IPDs) during the quarter, with a cumulative total of 374 IPDs, of which 266 are still active [9] - The company is involved in approximately 60 large-scale customer engagements across various sectors, including government and manufacturing [18] Company Strategy and Development Direction - The company aims to establish a market leadership position in enterprise AI applications, focusing on the C3 AI platform and expanding its application footprint [20][21] - A strategic integrator program was introduced to license the C3 AgenTeq AI platform to others, enabling them to develop industry-specific applications [17] - The company has restructured its sales and service organizations globally, bringing in new leadership to drive growth and customer satisfaction [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the financial results for the first quarter were unacceptable, attributing the underperformance to poor sales execution and resource coordination [12][13] - The new CEO, Steven Ehikian, is expected to drive growth and market penetration, with a focus on leveraging existing technology and customer relationships [23] - Management remains committed to achieving non-GAAP profitability and free cash flow, despite the challenges faced in Q1 [30] Other Important Information - The company plans to provide updated guidance for fiscal 2026 when announcing future financial results [10] - The addressable market opportunity is estimated to approach $2 trillion annually, indicating significant growth potential [21] Q&A Session Summary Question: How involved will Tom Siebel be in the sales process going forward? - Tom Siebel stated he will do everything possible to ensure the new CEO's success and will continue to monitor and assist in the sales process as necessary [26] Question: What gives confidence in the Q2 guidance? - Hitesh Lath mentioned that Q2 guidance is based on sales activity observed in August and the review of the sales pipeline with new leadership [28] Question: How do you see the mix of partner-led versus direct sales evolving? - Tom Siebel indicated that 90% of the business closed this quarter was with partners, and there will be significant investment in these partnerships going forward [33] Question: How would you weight the underperformance this quarter between sales disruption and Tom's impact? - Tom Siebel estimated it was a combination of both, with 70% attributed to sales disruption and 30% to his reduced involvement [41] Question: What execution steps are being taken regarding pilots and contracts? - Tom Siebel noted that there were many new people and leadership involved, which caused some confusion in the sales process [42]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $70.3 million, a decrease of 19% year over year [4] - Subscription revenue accounted for $60.3 million, representing 86% of total revenue [4] - Non-GAAP gross profit was $36.3 million, with a gross margin of 52% [7] - Non-GAAP operating loss was $57.8 million, and non-GAAP net loss was $49.8 million, translating to a net loss per share of $0.37 [8] - Cash, cash equivalents, and marketable securities at the end of the quarter totaled $711.9 million [9] Business Line Data and Key Metrics Changes - Revenue from software licenses for demonstration versions was $17.9 million, down sequentially by $15.9 million [5] - Professional services revenue was $10 million, with $8.7 million from Prioritized Engineering Services (PES), making up 14% of total revenue [5] - Combined subscription and PES revenue was $69 million, accounting for 98% of total revenue [5] Market Data and Key Metrics Changes - The company signed 28 initial production deployments (IPDs) during the quarter, with a cumulative total of 374 IPDs, of which 266 are still active [9] - Non-GAAP gross margin declined due to a higher mix of IPD-related costs and lower economies of scale [10] Company Strategy and Development Direction - The company aims to establish a market leadership position in enterprise AI applications, focusing on the C3 AgenTeq AI platform and expanding its application footprint [20][21] - A strategic integrator program was introduced to license the C3 AgenTeq AI platform to others, targeting OEMs and systems integrators [17] - The company plans to ramp up sales and service capacity globally, leveraging partnerships with major players like Azure, AWS, and GCP [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the first quarter's financial results were unacceptable, attributing the underperformance to poor sales execution and resource coordination [12][13] - The new CEO, Steven Ahitian, is expected to drive growth and customer satisfaction, with a restructured sales and service organization in place [14][22] - Management remains optimistic about achieving non-GAAP profitability and free cash flow in the future, despite the challenges faced in Q1 [28] Other Important Information - The company is involved in approximately 60 large-scale customer engagements across various sectors, including government and manufacturing [18] - The introduction of generative AI capabilities is expected to enhance project success rates, addressing common challenges in AI deployments [19] Q&A Session Summary Question: How involved will Tom be in the sales process going forward? - Tom stated he will do everything possible to ensure Steven's success and will continue to monitor and assist in the sales process as necessary [25] Question: What gives confidence in the Q2 guidance? - The Q2 guidance is based on sales activity observed in August and the review of the sales pipeline with new leadership [27] Question: How do you see the mix of partner-led versus direct sales evolving? - Tom indicated that 90% of the business closed this quarter was with partners, and there will be significant investment in these partnerships going forward [31][32] Question: How would you weight the underperformance this quarter? - Tom estimated that 70% of the underperformance was due to sales disruption and 30% due to his reduced involvement [39] Question: What execution steps are being taken regarding pilots and contracts? - Tom mentioned that new leadership and confusion in the sales process contributed to the challenges faced, but they are committed to improving execution [41]

three AI shares falling in overtime after reporting results uh at the top of the hour off the lows but still down um considerably about 10% in overtime. The company had pre-announced these results on August 11th. The stock fell 25% on that news.Uh C3AI also announcing now it has found a new CEO uh to replace Tom Seel uh Steven Ahikian. And joining us now is C3AI executive chairman Tom Seiull and the new CEO Stephen Ahikian. Uh gentlemen, welcome.Um can't wait to talk to both of you. So let me dive right in. ...