C3 AI stock falls 30% as CEO Siebel calls preliminary sales numbers 'completely unacceptable'

Shares of C3 AI, a prominent player in the enterprise artificial intelligence sector, experienced a significant decline of 30% on Monday. This drop came in the wake of the company's announcement regarding its preliminary financial results and a major reorganization of its global sales and services division. In a recent statement, C3 AI projected revenues for its fiscal first quarter of 2026 to be between $70.2 million and $70.4 million. These figures, however, are unaudited estimates and reflect a stark decrease from the $87.2 million reported during the same quarter the previous year. CEO Thomas Siebel expressed his dissatisfaction with the sales performance, labeling it as "completely unacceptable." He linked the disappointing results to the disruptions caused by the restructuring process, along with his ongoing health challenges. C3 AI anticipates reporting a GAAP loss from operations for the quarter ranging from $124.7 million to $124.9 million, a significant increase compared to last year's loss of $72.59 million. Siebel acknowledged that his health issues had limited his involvement in the sales process, stating, "With the benefit of hindsight, it is now apparent that my active participation in the sales process may have had a greater impact than I previously thought." He revealed in July that he was diagnosed with an autoimmune disorder earlier this year, which has resulted in significant visual impairment. Looking ahead, C3 AI's board and Siebel have initiated a search for a new chief executive. Although the restructuring of sales and services is now complete, Siebel noted that his health has seen a "dramatic" improvement, aside from his vision challenges. He expressed confidence in the company's future, stating, "I am feeling strong and fully engaged, and will work to quickly identify excellent CEO candidates. I am confident the company is positioned to accelerate going forward." A conference call to discuss the first quarter results is scheduled for September 3 at 5 p.m. ET.