C3.ai Shares Drop Sharply After Revenue Falls Far Short of Expectations

C3.ai (NYSE:AI) shares tumbled 30% Monday following an earnings pre-announcement that missed Wall Street’s expectations by a considerable margin. The enterprise artificial intelligence software firm revealed preliminary first-quarter revenue of $70.2–$70.4 million—33% below analyst projections and down 19% year-over-year. The miss was attributed to a company-wide sales and services restructuring and CEO Thomas Siebel’s health-related absence. Operational losses deepened, and the company announced new executive hires in hopes of stabilizing performance. In response, analyst DA Davidson downgraded the stock and slashed its price target nearly in half. Full quarterly results and an updated outlook are scheduled for release on September 3, 2025.

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