C3.ai Reports 19% Revenue Drop, Appoints New CEO Amid Leadership Shakeup

C3.ai reported a challenging first quarter for fiscal 2026, with revenue falling 19% year-over-year to $70.3 million and a widened net loss of $49.8 million, missing analyst expectations. The company attributed the disappointing results primarily to internal execution issues, including a major sales and service team restructuring that disrupted its go-to-market momentum. Founder and long-time CEO Thomas Siebel stepped down due to health problems, specifically an autoimmune disease causing visual impairment, and was succeeded by Stephen Ehikian, a veteran tech entrepreneur tasked with stabilizing operations. Despite 266 of 374 initial production deployments remaining active, the company withdrew its fiscal 2026 guidance, citing sales disruptions and leadership transition challenges. The market reacted negatively, with shares dropping over 10% amid investor concerns about C3.ai's ability to regain growth and profitability under new leadership. Analysts remain divided on the stock’s prospects, with some seeing potential upside if execution improves, while others downgrade due to recent setbacks and uncertainty.