Shares of C3.ai have struggled as investors weigh a sales decline and heavy losses, following leadership disruption and ongoing changes to the company’s business model. According to the company, results deteriorated after founder Thomas Siebel stepped down as CEO last year, before returning to the role in May and signaling an attempt to stabilize revenue and restart growth.
Key takeaways
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C3.ai shares are down 22% in 2026 as of the market close on Sept. 4, reflecting pressure from weakening revenue and steep losses.
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The latest catalyst was Siebel’s operational return and a shift in go-to-market strategy toward an enterprise platform approach.
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C3.ai forecasts fiscal 2027 revenue of up to $240 million, implying a much smaller year-over-year decline than previously reported.
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The company is also building toward a platform-led model, including its C3 Agentic AI Platform and tools such as C3 Code, which management says could accelerate enterprise application development.
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Investors may remain cautious until sales growth is visible in reported revenue rather than only in contract indicators like bookings.
What drove the recent deterioration in sales
According to the article, C3.ai’s performance worsened after Thomas Siebel stepped down from the CEO position last September to focus on health issues. The publication linked the change to a disruption in the processes for sales and customer relationship management, which it said contributed to a sharp revenue decline.
Siebel returned to lead C3.ai in May, and management has since outlined a turnaround plan. However, investors appear to be discounting that effort until it translates into sustained revenue improvement.
Strategy shift: from standalone AI applications to a platform model
Data in the report indicates that C3.ai is moving away from relying solely on individual AI applications sold to enterprise customers and toward becoming a broader platform provider. The company still has a portfolio of ready-made AI applications, but it is increasingly framing its offering as an operating system for business-wide AI deployment.
Late last year, C3.ai launched the C3 Agentic AI Platform, described as an intelligent system intended to understand enterprise entities, processes, relationships, and data. The platform is positioned to help enterprises create AI agents that can automate tasks and support operational decisions with human permission.
The report also highlighted C3 Code, a programming tool designed to build software based on plain-English instructions. C3.ai’s stated objective is to enable enterprises to develop their own applications more quickly, even without large engineering teams.
For investors, the platform shift matters because, according to the report, enterprises often struggle to gain sustained value from piecemeal AI rollouts. Management’s argument is that a unified, whole-of-business approach better aligns with how enterprises deploy AI across multiple functions.
Sales and losses: guidance narrows the decline, but growth is not yet confirmed
According to the article, C3.ai generated total revenue of $250.3 million in fiscal 2026 (ended April 30), a 35% decline from the prior year. In fiscal 2027 first quarter results (ended July 31), revenue fell to $52.4 million, down 25% year over year.
Management’s outlook suggests the trajectory could improve. The report said C3.ai expects up to $240 million in revenue for fiscal 2027, implying a 4% year-over-year decline versus fiscal 2026—substantially narrower than the earlier contraction. It also cited Siebel’s view that a return to sales growth could occur within the next two quarters.
On profitability, the report said C3.ai’s net loss increased 63% to $470.3 million in fiscal 2026. In the fiscal 2027 first quarter, the company still lost $92.8 million, though that was 20% less than the year-ago period. The company also reported modest positive free cash flow of $2.1 million during the first quarter, which it framed as an incremental improvement.
To support the turnaround, the report said C3.ai restructured its sales organization and cut costs. Investors typically track whether these steps translate into durable top-line stabilization and better loss trajectory, rather than short-term quarters alone.
Why the stock may remain difficult to value until revenue growth returns
Even after a decline, valuation metrics may not yet offer a clear margin of safety. The article said C3.ai trades at a price-to-sales ratio of 6.5, below its five-year average of 9.4. However, because the company is forecast to see revenue shrink during fiscal 2027, its forward price-to-sales multiple is higher than its trailing level—an important distinction for investors assessing how much growth is already “priced in.”
The report also pointed to a potential early indicator: during the first quarter, gross bookings increased 73% quarter over quarter. Gross bookings typically reflect the value of signed contracts for services expected to be delivered in the future, and they can help predict revenue timing. Still, investors generally prefer to see bookings convert into reported revenue over multiple periods, particularly for companies in turnaround phases.
Bigger picture: what to watch next
For C3.ai, the immediate focus is whether the company’s platform transition and sales overhaul produce measurable revenue growth after a period of contraction. Investors will likely look to upcoming quarterly results for evidence that bookings translate into higher revenue, along with continued progress toward narrowing losses and improving cash flow. The company’s next scheduled earnings and any updates to its forward guidance will be key data points for gauging whether management’s timeline for renewed growth is being met.
