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C3.ai Posts Q1 Preliminary Results, Revamps Sales Team, Stock Down

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Key Takeaways

  • C3.ai expects Q1 revenues of $70.2M-$70.4M, well below the consensus estimate of $104M.
  • Q1 GAAP operating loss is pegged at $124.7M-$124.9M, with $711.9M in liquidity on hand.
  • Leadership overhaul brings in veteran executives to boost growth across regions.

C3.ai, Inc. (AI - Free Report) , a leader in enterprise AI application software, has reported dismal preliminary results for its fiscal first quarter, ended July 31, 2025. Following the preliminary results, the stock declined 27% in the pre-market trading session today.

Revenues are expected to be in the range of $70.2 million to $70.4 million. The Zacks Consensus Estimate for revenues is pegged at $104 million.

GAAP operating loss is estimated at $124.7 million to $124.9 million, while non-GAAP operating loss is predicted at $57.7 million to $57.9 million. The company closed the quarter with $711.9 million in cash, cash equivalents and marketable securities, underscoring a strong liquidity position despite the wider losses.

Leadership Restructuring to Drive Growth

Alongside the financial update, C3.ai announced a comprehensive overhaul of its sales and services organizations to accelerate growth. The restructuring brought in several industry veterans, including Rob Schilling as executive vice president and chief commercial officer and John Kitchingman as general manager for EMEA. The company also added Jeff Cosseboom as group vice president for North America East Sales and Lars Farnstrom as group vice president for the Nordics.

Long-time executive Alex Amato was promoted to lead all professional services and customer operations, with a focus on ensuring rapid and measurable value for clients. CEO Thomas M. Siebel acknowledged that first-quarter fiscal 2026 sales fell short of expectations, attributing this to the short-term disruption of the reorganization and his limited involvement due to recent health issues. Siebel confirmed his health has improved, aside from vision impairment. He also emphasized that the company is actively seeking his successor.

With a refreshed leadership team, a robust product suite and strong customer satisfaction, C3.ai believes it is positioned to accelerate momentum in the coming quarters. Full first-quarter fiscal 2026 results and updated fiscal 2026 guidance will be shared on Sept. 3, 2025.

AI currently has a Zacks Rank #3 (Hold). Shares of the company have lost 10.1% in the past year compared with the industry’s decrease of 5.8%.

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Genpact delivered a trailing four-quarter earnings surprise of 5.2%, on average. The stock has gained 19.1% in the past year. The Zacks Consensus Estimate for Genpact’s 2025 sales and earnings per share (EPS) implies growth of 4.5% and 6.4%, respectively, from the year-ago levels.

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The Zacks Consensus Estimate for Dynatrace's fiscal 2026 sales and EPS indicates growth of 16.4% and 13.7%, respectively, from the year-ago period’s levels. 

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