C3.AI, Inc. (NYSE:AI) stock plummeted by more than 20% on Monday after the company released early financial figures and announced changes to its sales and services teams last Friday.
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Q1 Preliminary Results
For its fiscal first quarter of 2026, C3 AI predicts revenue will fall to between $70.2 million and $70.4 million, down from $87.2 million during the same period last year.
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CEO Thomas Siebel called the sales results for the quarter "completely unacceptable," blaming both the disruption caused by the reorganization and his own health problems.
The company expects a GAAP operational loss of approximately $124.7 million to $124.9 million for the quarter, which is significantly higher than last year's loss of $72.59 million.
Siebel recently revealed he was diagnosed with an autoimmune disease that caused significant vision loss, and noted that his limited involvement in sales likely affected the results more than anticipated.
Following the news, DA Davidson analyst Lucky Schreiner downgraded C3 AI stock from Neutral to Underperform and slashed the price target from $25 to $13 on Monday.
Looking Ahead
C3 AI's board, along with Siebel, has started searching for a new CEO. Siebel said his health has improved aside from his vision issues, and that he feels ready to help find strong leadership candidates.
He also expressed confidence that the company can regain momentum going forward.
C3 AI will discuss its first quarter results in a conference call scheduled for September 3 at 5 p.m. ET.
AI Stock Price: C3 AI shares were down 22.3% at $17.20 on Monday, according to data from Benzinga Pro.
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