Why C3.ai Stock Is Plummeting Today

MrDecoder · 2026-02-26T18:39:26+00:00

C3.ai's stock plummeted 22% after weak fiscal Q3 results showed revenue at $53.26 million, below both prior year and analyst expectations. The company is forecasting further declines and plans to cut 26% of its workforce amid significant operational losses.

MrDecoder

2026-02-26 18:39:26

Abstract generation in progress

C3.ai (AI 21.24%) stock is getting hit with big sell-offs in Thursday’s daily trading session. The company’s share price was down 22% as of 1:15 p.m. ET amid a 1.2% decline for the S&P 500 and a 2% slide for the Nasdaq Composite.

Tech shares are generally under pressure today as investors adjust positions following Nvidia’s recent quarterly report and concerns about macroeconomic dynamics, but much of C3.ai’s valuation slide is stemming from the company’s recent quarterly report. The software and consulting services published _ quarter results after the market closed yesterday, and the print flashed some big warning signs.

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C3.ai’s fiscal Q3 results were shockingly weak

C3.ai’s revenue came in at just $53.26 million in the third quarter of its current fiscal year, which ended Jan. 31. For comparison, the business had posted sales of $98.78 million in the prior-year quarter. Meanwhile, the average Wall Street analyst estimate called for sales of roughly $76 million in this year’s quarter. The company’s non-GAAP (adjusted) loss of $0.40 per share in fiscal Q3 also came in significantly above Wall Street’s target for a per-share loss of $0.29.

What comes next for C3.ai?

For fiscal Q4, C3.ai is guiding for sales between $48 million and $52 million. Management also anticipates an adjusted operating loss between $56 million and $64 million.

Along with its fiscal Q3 report, C3.ai submitted a regulatory filing that detailed some future plans for the business. The company plans to lay off approximately 26% of its global workforce. The company is also aiming to reduce non-employee costs by 30%. The company’s business model seems to be faltering, and pressure is on for a turnaround.

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