Shares of C3.ai (AI) were sliding Tuesday after the company released preliminary fourth-quarter and full-year results that showed revenue within its guided range but weaker-than-expected bookings and continued operating losses. The stock's drop came as broader markets also slipped, with S&P 500 futures down 0.4%.
On the leadership front, the company disclosed that Thomas M. Siebel has returned as Chief Executive Officer as of May 8, while retaining his role as Chairman. Stephen Ehikian remains President and will report directly to Siebel. The move marks a shift in the C-suite as the company navigates a challenging period.
Revenue and Costs
Revenue for the quarter came in at $51.6 million, within the company's guidance range of $48 million to $52 million. On the bottom line, C3.ai posted a GAAP operating loss of $121.2 million. On a non-GAAP basis, the operating loss was $54.4 million, which was actually better than the guided range of $56 million to $64 million.
The company ended the quarter with $575.4 million in cash, cash equivalents, and investments. It also signed 28 agreements during the period, including nine new Initial Production Deployments, though bookings were lower than anticipated.
C3.ai completed a restructuring initiative in the fourth quarter aimed at generating about $135 million in annualized non-GAAP cost savings and reducing cash burn by a similar amount. The workforce reductions are largely finished, while most non-employee cost savings are expected to flow through in the second half of fiscal 2027.
Earnings and Analyst Outlook
The company is scheduled to provide its next financial update on June 3, 2026. Analysts are currently estimating an EPS loss of 45 cents, down from a loss of 16 cents in the same quarter last year, and revenue of $50.05 million, down from $108.70 million.
The stock carries a consensus Hold rating with an average price target of $8.57. Recent analyst moves include:
- Freedom Broker: Hold, target lowered to $9.00 (March 11)
- Wedbush: Outperform, target lowered to $15.00 (February 26)
- JP Morgan: Underweight, target lowered to $7.00 (February 26)
Technical Picture
At the time of publication, C3.ai shares were trading at $9.31, which is 1.2% below its 20-day simple moving average of $9.17 and 2% above its 50-day SMA of $8.88. The moving average convergence divergence (MACD) is above its signal line, suggesting that downside pressure is easing and momentum could improve.
Key resistance sits at $10.00, a level where rebounds have stalled in the past. On the downside, $8.00 has acted as support, with buyers stepping in previously. Over the past 12 months, the stock has fallen 62.46%, reflecting the challenges the company has faced.
What C3.ai Does
C3.ai is an enterprise artificial intelligence company that provides software-as-a-service applications for developing, deploying, and operating large-scale AI applications. It operates through three divisions: the C3 AI Platform, C3 AI Applications, and C3 Generative AI, serving a wide range of industries.
AI Price Action: C3.ai shares were down 5.59% at $8.94 at the time of publication on Tuesday.
