C3.ai Stock (AI) Slumps amid 26% Job Cuts and Disastrous Quarterly Results

FomoAnxiety · 2026-02-26T05:54:54+00:00

C3.ai's shares fell over 22% after reporting dismal Q3FY26 results, with a significant revenue decline and job cuts. The company forecasts lower Q4 revenue than expected, undergoing a restructuring under new CEO Stephen Ehikian. Analysts have a cautious outlook, rating the stock as a Hold.

FomoAnxiety

2026-02-26 05:54:54

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Shares of C3.ai AI +1.88% ▲ slumped over 22% in after-hours trading yesterday after the company reported dismal Q3FY26 results and announced 26% global job cuts. The enterprise AI software company posted an adjusted loss per share of $0.40, missing analysts’ consensus loss of $0.29 per share. Revenue declined 46% year-over-year to $53.3 million, below expectations of $75.56 million.

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C3.ai forecasted Q4 revenue between $48 million and $52 million, significantly below analysts’ $77.47 million estimate, citing weakness in North America and Europe. Adjusted loss from operations is projected between $56 million and $64 million.

C3.ai’s Restructuring Push

C3.ai is undergoing a comprehensive restructuring plan under new CEO Stephen Ehikian. He admitted the company was not organized correctly. Since taking over in September, he has cut company costs and cash burn while flattening the sales team. The company had about 1,181 full-time employees as of April 30, 2025.

C3.ai expects $10 million to $12 million in pre-tax restructuring charges in Q4FY26 and plans to cut non-wage costs by 30% by late 2027. It projects around $135 million in annual non-GAAP operating expense savings, though actual amounts and timing may vary.

Is C3.ai a Good Stock to Buy?

Analysts remain cautious about C3.ai’s long-term prospects. On TipRanks, AI stock has a Hold consensus rating based on one Buy, five Holds, and three Sell ratings. The average C3.ai price target of $14.50 implies 40.6% upside potential from current levels. Over the past year, AI shares have plummeted 61%.

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