C3.ai Faces Sharp Q1 Miss, Leadership Shakeup as New CEO Steps In

C3.ai Faces Setback with Q1 Sales and New Leadership

C3.ai (AI) saw its shares fall after reporting a disappointing fiscal first quarter, missing expectations on both revenue and earnings. The company posted a loss of $0.37 per share, with revenue coming in at $70.3 million versus the anticipated $104.2 million. Following this, C3.ai withdrew its full-year fiscal 2026 guidance, signaling caution to investors.

In response to the challenges, Executive Chairman Tom Siebel announced a leadership change, appointing Stephen Ehikian as the new CEO. Ehikian brings experience from Salesforce as vice president of product and has served in the federal government as acting administrator and deputy administrator of the General Services Administration (GSA) during the previous administration.

Sales Execution: What Went Wrong?

Tom Siebel addressed the sales issues directly, calling the quarter’s sales execution “inexcusable.” This was the first time in 19 public quarters that C3.ai missed its earnings guidance. The company had recently reorganized its global sales teams, bringing in new leadership across regions—including Europe, the US, and federal sectors. While intended to strengthen the sales approach, these changes caused disruption that negatively affected revenue performance.

Despite the setback, Siebel emphasized the company’s strong product portfolio—with 131 products—and a large market with limited competition. He expressed confidence that with new leadership and adjustments, the company is positioned to recover and grow.

Looking Ahead: When Will Sales Improve?

Siebel drew parallels to other tech giants who have missed earnings periodically during their growth phases. He pointed out that companies like Oracle, Nvidia, Salesforce, and Amazon have all faced missed quarters but ultimately succeeded over the long term. This perspective frames C3.ai’s recent issues as a temporary hurdle rather than a terminal problem.

With Stephen Ehikian stepping into the CEO role, there is optimism about turning the sales trajectory around. Ehikian’s background in product leadership and government AI initiatives brings valuable insight at a critical moment for C3.ai.

What Sales Professionals Should Watch

• Sales Leadership Changes: New leadership often means new priorities and strategies. Sales teams should be prepared for shifts in approach and focus.
• Market Potential: Despite recent misses, C3.ai operates in a large, relatively uncontested market with a broad product set. This creates opportunities for sales growth as execution improves.
• Performance Pressure: After missing guidance, the sales organization will likely face increased scrutiny and pressure to deliver results quickly.
• Strategic Realignment: The recent global sales reorganization is a sign that C3.ai is actively seeking to improve its go-to-market execution—sales teams need to align with these new structures.

For sales professionals interested in strengthening AI-related skills and staying competitive in tech sales, exploring targeted training can be valuable. Resources like Complete AI Training’s sales-focused courses can help build expertise in AI products and solutions.

While the current quarter’s results are disappointing, C3.ai’s situation underscores the importance of strong sales execution and adaptability in fast-moving tech markets. Watching how the new CEO steers the company will be key for anyone involved in AI sales and business development.