C3.ai CEO Stephen Ehikian Admits Fallout From Tom Siebel's Health Crisis, Sales Reorg Chaos: 'There's Work To Be Done...'

On Wednesday, C3.ai Inc.'s (NYSE:AI) CEO, Stephen Ehikian, addressed the company's troubles as he works to stabilize the enterprise AI firm after months of missed targets, leadership turmoil and a disruptive overhaul of its sales organization.

C3.ai Beats Expectations But Faces Lingering Strain

C3.ai reported second-quarter results that came in ahead of Wall Street estimates, offering a brief reprieve after a rocky stretch, according to Benzinga Pro.

The company posted a loss of 25 cents per share, narrower than the 33-cent loss analysts predicted, on revenue of $75.15 million, slightly above expectations.

But the better-than-expected quarter followed a bruising first quarter, when C3.ai missed both revenue and earnings forecasts by a wide margin.

The company reported $70.26 million in revenue, far short of the nearly $95 million analysts expected and a larger-than-anticipated adjusted loss.

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Leadership Instability, Sales Breakdown Hit Performance

Sales execution simply fell off and it was "unacceptable," Ehikian said on Wednesday while answering the question of Patrick Walravens, Citizens JMP Securities.

He noted that former CEO Thomas Siebel had already addressed how his health complications contributed to the decline. He added that the reorganization created unexpected disruption and led to missed opportunities.

Siebel disclosed earlier this year that he was diagnosed with an autoimmune disease that caused significant vision impairment. In August, the former CEO said the condition, combined with a major restructuring of C3.ai's global sales and services teams, weighed heavily on performance.

Ehikian Says Demand Is Strong, Turnaround Plan Underway

Despite the setbacks, Ehikian said the demand environment for enterprise AI remains robust and may be stronger than he expected when he joined.

He pointed to customer feedback, value delivered in recent deployments and internal talent strength as signs the business can return to growth.

"There’s work to be done. So I’m not going to say it is easy. But I know the market is there, the technology can deliver. It’s purely like I got to drive this business is what you’re hearing from me," he said.

Analysts pressed him on whether C3.ai can regain profitability. Ehikian said he is confident but focused on driving consistent execution.

On Wednesday, C3.ai closed at $15.01, up 4.42% for the day, but slipped 1.73% to $14.75 in after-hours trading. Benzinga's Edge Stock Rankings indicate that C3.ai is showing a downward trend across the short, medium and long term. More performance insights are available here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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