C3.ai (AI 0.27%) stock slipped 3.2% through 11:25 a.m. ET Wednesday after the artificial intelligence app maker reported worse-than-expected sales and earnings results last night.
Heading into the company's fiscal Q1 2026 report, Wall Street was already pessimistic, thinking C3.ai would lose $0.21 per share on sales of $93.9 million, but the news was worse. C3's sales totaled only $70.3 million, and its loss was $0.37 per share.
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C3.ai Q1 earnings
It gets worse. Turns out $0.37 was a non-GAAP (adjusted) number, and when calculated according to generally accepted accounting principles (GAAP), C3.ai actually lost more than twice as much -- $0.86 per share, 72% worse than its loss one year ago.
To its credit, C3 says these results are "completely unacceptable." CEO and company founder Thomas Siebel blames disruption from the company's restructuring and his own "unanticipated health issues."
Now, the good news (says C3), "is we have completely restructured the sales and services organization," including by hiring "an exceptionally talented new CEO to take the company to the next level." Acting Administrator of the U.S. General Services Administration Stephen Ehikian took over management of the company on Labor Day.
Is C3.ai stock a buy?
Ehikian's new job won't be a walk in the park, however. Turning to guidance, C3.ai says revenue in fiscal Q2 2026 is looking only modestly better than Q1's -- $72 million to $80 million -- and the company is expecting to report another loss (between about $50 million and $58 million non-GAAP, and perhaps worse GAAP). Indeed, no analysts following the company currently forecast C3.ai turning profitable...ever.
Until that changes, I can hardly call C3.ai stock a buy.
