C3.ai (AI) Is Down 12.8% After CEO Change Following Revenue Decline Is the Turnaround on Track?

• C3.ai recently appointed Stephen Ehikian as CEO to lead a turnaround after the previous CEO stepped down due to health reasons, following a 19% year-over-year revenue decline in Q1 FY 2026.
• This leadership transition signals a renewed effort to address ongoing business challenges and could be pivotal in shaping C3.ai’s future direction within the competitive AI sector.
• We'll examine how the CEO change and focus on business improvement could alter C3.ai’s investment narrative and risk profile.

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C3.ai Investment Narrative Recap

To be a shareholder in C3.ai today, you need to believe that the company’s new leadership can reverse recent revenue declines and stabilize its financial outlook, despite persistent unprofitability and the withdrawal of full-year guidance. The CEO transition brings fresh energy but does not immediately resolve the most pressing catalyst, restoring sales execution, or the overriding risk of ongoing operating losses and unpredictable top-line performance.

One recent announcement closely tied to this shift is the addition of a new Chief Commercial Officer, Rob Schilling, intended to overhaul C3.ai’s sales and service teams. This move aligns with the leadership change, aiming to directly address execution risks that have weighed on growth and contributed to weaker financial results.

Yet, beneath these leadership changes, investors must remain aware that despite renewed focus, C3.ai’s heavy dependence on partner-led sales could mean…

Read the full narrative on C3.ai (it's free!)

C3.ai's narrative projects $613.6 million in revenue and $80.3 million in earnings by 2028. This requires 16.4% yearly revenue growth and a $369 million increase in earnings from -$288.7 million today.

Uncover how C3.ai's forecasts yield a $14.67 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Fifteen members of the Simply Wall St Community estimated C3.ai’s fair value between US$13 and US$42.60 per share before the CEO change. With mounting operating losses and unpredictable revenue, your view on recovery may differ greatly from the consensus, explore these varied analyses for a wider perspective.

Explore 15 other fair value estimates on C3.ai - why the stock might be worth 18% less than the current price!

Build Your Own C3.ai Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your C3.ai research is our analysis highlighting 3 important warning signs that could impact your investment decision.
• Our free C3.ai research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate C3.ai's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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