C3.ai founder Thomas Siebel returns as CEO amid deepening financial losses
The artificial intelligence software developer’s stock has fallen 36% this year as the company struggles with shrinking sales and a dwindling cash reserve.
C3.ai has announced that founder Thomas Siebel will resume his duties as chief executive officer on May 8, following a departure in September 2025 due to health issues. The leadership reshuffle arrives as the company grapples with significant financial headwinds, including a 36% decline in its share price this year and a 35% drop in revenue for fiscal 2026, which concluded on April 30.
During his previous tenure, Siebel was instrumental in selling the company’s software applications and managing relationships with key customers. His absence coincided with the loss or delay of several lucrative deals, contributing to the sharp contraction in sales. Stephen Ehikian, who served as interim chief executive, attempted to restructure costs to mitigate the impact of the revenue decline but was unable to prevent a substantial net loss at the bottom line.
For the fiscal year ended April 30, C3.ai reported a net loss of $498 million, representing a near-70% increase from the previous year. The company generated $250.3 million in total revenue. While Ehikian worked to limit the damage from the revenue drop, the company’s expenses remained too high relative to incoming sales, resulting in the widened deficit.
The financial strain has raised concerns regarding the company’s liquidity. C3.ai ended fiscal 2026 with $575 million in cash and cash equivalents. Analysts note that the firm cannot sustain current loss levels for much longer without taking on debt or conducting a capital raise, which would dilute existing shareholders. To improve its bottom line, the company must reverse its revenue decline, a task Siebel is expected to prioritise upon his return.
C3.ai develops turnkey artificial intelligence software applications for industries such as manufacturing, retail, and financial services. The company’s platform allows businesses to access computing capacity via cloud providers like Amazon Web Services or Microsoft Azure without needing to develop software from scratch. Despite these capabilities, Wall Street consensus estimates point to a further 9% decline in revenue for fiscal 2027.
The company’s valuation has contracted significantly from its peak. C3.ai’s stock has fallen 94% from its 2020 record high, with its price-to-sales ratio dropping to 3.9, near its lowest level since going public. However, a lower valuation does not necessarily indicate a cheap stock if revenue continues to shrink. The Motley Fool’s Stock Advisor analyst team did not include C3.ai in its current list of top 10 recommended stocks.
