C3 AI Stock Plunges After 'Completely Unacceptable' Q1 Sales

Core Viewpoint - C3 AI, Inc. experienced a significant stock decline of over 20% following the release of disappointing preliminary financial results and organizational changes within the sales and services teams [1]. Financial Performance - For the fiscal first quarter of 2026, C3 AI anticipates revenue to be between $70.2 million and $70.4 million, a decrease from $87.2 million in the same quarter of the previous year [2]. - The company expects a GAAP operational loss of approximately $124.7 million to $124.9 million for the quarter, which is a substantial increase from last year's loss of $72.59 million [3]. Leadership and Management Issues - CEO Thomas Siebel described the sales results as "completely unacceptable," attributing the poor performance to disruptions from the reorganization and his own health challenges [3]. - Siebel disclosed that he has been diagnosed with an autoimmune disease affecting his vision, which he believes has impacted his ability to contribute to sales more than expected [4]. - C3 AI's board is actively searching for a new CEO, although Siebel has expressed confidence in finding strong leadership candidates and believes his health has improved [5]. Market Reaction - Following the negative news, DA Davidson analyst Lucky Schreiner downgraded C3 AI's stock rating from Neutral to Underperform and reduced the price target from $25 to $13 [4]. - On the day of the announcement, C3 AI shares fell by 22.3%, closing at $17.20 [5].