C3.ai Inc. released preliminary first-quarter revenue that fell far short of analysts’ estimates and restructured its sales management team. The shares fell about 14% in extended trading.
Sales are expected to be about $70.3 million in the period ended July 31, the software company said Friday in a statement. Analysts, on average, estimated $104.3 million.
C3.ai said it would release the quarterly results and discuss 2026 guidance on Sept. 3. The shares dropped to less than $19 after closing at $22.13. The stock has declined 36% this year.
The company has hired several new executives in the past few months, including Rob Schilling as chief commercial officer in charge of sales.
“The good news is we have completely restructured the sales and services organization, including new and highly experienced leadership across the board to ensure a return to accelerating growth and increased customer success at C3 AI,” Chief Executive Officer Tom Siebel said in a separate statement. “The bad news is that sales results in Q1 were completely unacceptable.”
Several weeks ago Siebel announced he intended to step aside due to health difficulties from an autoimmune disease and that the company he founded would begin a search for a successor as CEO.
While the search continues, Siebel said Friday that, “but for vision impairment, my health has improved dramatically. I am feeling strong and am fully engaged.”