Sometimes an earnings report is just bad. For C3.ai, Inc. (AI), Wednesday's third-quarter results were one of those times. The stock tanked in extended trading after the company missed estimates, cut its future revenue outlook dramatically, and said it's restructuring.

Let's start with the numbers, because they tell most of the story. The company reported a loss of 40 cents per share. Analysts were expecting a loss of 29 cents. Revenue came in at $53.26 million. That's a big miss—the consensus estimate was for $75.62 million. It's also a steep drop from the $98.78 million it reported in the same quarter last year.

But the real headline grabber was the guidance. C3 AI essentially cut its fiscal 2026 revenue outlook in half. Previously, it was guiding for revenue between $447.5 million and $484.5 million. The new range? A much more modest $246.7 million to $250.7 million. That's the kind of revision that gets investors' attention, and not in a good way.

The market's reaction was swift. The stock fell 19.3% to $8.32 in after-hours trading.

Alongside the numbers, the company announced a restructuring plan that includes workforce reductions. In a statement, CEO Stephen Ehikian, who joined the company six months ago, tried to balance optimism with realism. "I joined C3 AI six months ago and I did so with a clear conviction: this company is uniquely positioned to win in Enterprise AI. That conviction has been reinforced through extensive engagement with customers, prospects, partners and investors," he said.

He followed that with the rationale for the shake-up: "However, it was clear to me that we were not organized appropriately."

So, to recap: a big earnings miss, a massive guidance cut, a restructuring, and a nearly 20% drop in the stock price. It was a tough Wednesday for C3 AI shareholders.