C3.ai Reports 19% Revenue Decline in Q1 FY26, Appoints Stephen Ehikian as CEO

Redwood City, Calif. – C3.ai (NYSE: AI), an enterprise artificial intelligence software company, announced a significant 19% year-over-year decline in its fiscal first-quarter revenue, falling to $70.3 million. The company also confirmed the appointment of long-time tech executive Stephen Ehikian as its new Chief Executive Officer, effective September 1, 2025. This leadership change sees founder Thomas Siebel transition to the role of Executive Chairman.

The reported revenue for the quarter, which ended July 31, 2025, was $70.3 million, a notable decrease from $87.2 million in the same period last year. C3.ai's GAAP net loss widened to $0.86 per share, compared to a $0.50 loss per share in the prior year. Thomas Siebel, in the earnings release, described the financial performance as "completely unacceptable."

Stephen Ehikian assumes the CEO role after a distinguished career in enterprise software, including building RelateIQ and Airkit.ai, both later acquired by Salesforce. He most recently served as Acting Administrator of the U.S. General Services Administration. Thomas Siebel cited unanticipated health issues, specifically a diagnosis of an autoimmune disease resulting in "significant visual impairment," as a factor influencing his decision to step down from the CEO position.

The company also attributed the weak financial outcomes to a disruptive restructuring of its global sales and services organization. This reorganization, coupled with Siebel's reduced involvement in sales processes due to his health, impacted customer engagement and deal execution during the quarter. C3.ai has withdrawn its previous full-year fiscal 2026 guidance, citing the new leadership and operational reset.

Looking ahead, C3.ai is focusing on its C3 Agentic AI Platform and C3 Generative AI suite, aiming to scale its offerings through a partner-led distribution model. The company reported $711.9 million in cash, cash equivalents, and marketable securities, providing a substantial reserve for its strategic initiatives. For the second quarter of fiscal 2026, C3.ai projects revenue between $72.0 million and $80.0 million.

Following the financial results and leadership announcement, C3.ai's stock experienced a significant drop. As reported by CNBC, the company's shares fell approximately 14% in extended trading, reflecting investor concerns over the financial underperformance and the ongoing transition. The market will closely watch how the new leadership and strategic adjustments impact future performance.