C3.ai (NYSE: AI) shares slid as much as 12% in early trading on Thursday after the artificial-intelligence software company reported first quarter 2026 financial results that disappointed investors and announced Stephen Ehikian as its new CEO.
C3.ai recorded $70.3 million in revenue for the quarter, down from $87.2 million during the same period last year, while the company’s GAAP net loss widened to $0.86 per share from a $0.50 deficit a year earlier.
Company founder and chairperson Thomas Siebel called the quarter’s financial performance "completely unacceptable”.
C3.ai also withdrew its previous full-year fiscal 2026 guidance. The company, though, noted that it expects to see further moderation in gross margins in the near-term due to higher initial product deployments and lower economies of scale.
In a note to clients, Wedbush analysts called the results a “rough start to the year," while remaining hopeful its new CEO “can turn this sinking ship around.”
They called the hiring of Stephen Ehikian “solid” given his experience, but wrote “the company still has significant hurdles to overcome to regain the Street’s confidence given the weakness in its operational performance following the sales restructuring.”
The analysts maintained their ‘Outperform’ rating on the stock while lowering their price target from $23 to $20 per share, “reflecting a lower multiple as the company looks to reverse its current path with new leadership at the helm.”