C3.ai CEO Steps Down, Q1 Revenue Plunges 33%, Stock Drops 29%

C3.ai's stock plunged nearly 30% following the company's announcement of a 33% revenue miss in preliminary Q1 results, with revenue reported around $70.3 million compared to prior guidance of $100-109 million. Operating losses doubled expectations, reaching approximately $57.7-59.9 million, exacerbating concerns about the company's financial health amid a major sales team restructuring. CEO Tom Siebel, citing health issues including vision loss and multiple hospitalizations, announced his resignation, which analysts view as a significant turning point that could increase the likelihood of C3.ai becoming an acquisition target. The company has brought in new leadership to overhaul its sales and services organization, aiming to reset its go-to-market strategy and regain investor confidence. Analysts from firms such as D.A. Davidson and Wolfe Research downgraded C3.ai to Sell or Underperform with price targets between $13 and $15, highlighting the risks posed by continued revenue shortfalls and organizational challenges. Despite these setbacks, some analysts maintain a cautiously optimistic outlook, noting potential stock upside based on valuation models, but overall sentiment remains negative due to the combination of poor earnings, leadership transition, and restructuring efforts.