C3.ai Drops as Company Replaces CEO, Withdraws Outlook
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Shares of C3.ai (AI) fell Thursday, a day after the artificial intelligence software provider announced that it had replaced its CEO, posted weak results and withdrew its guidance.
The company said Stephen Ehikian replaced Thomas Siebel as of Sept. 1. C3.ai called Ehikian a “recognized innovator in the enterprise software industry” who most recently held the position of Acting Administrator of the U.S. General Services Administration. Siebel will remain as Executive Chair.
The company reported a fiscal 2026 first-quarter adjusted loss of $0.37 per share, more than double the estimate of analysts surveyed by Visible Alpha. Revenue sank 19% year-over-year to $70.3 million, also way short of forecasts.
Siebel pointed to two factors behind the poor performance. The first was the disruptive effect of the company’s reorganization, with new sales and services leadership. The second was that he dealt with “a number of unanticipated health issues,” which “prevented me from participating in the sales process as actively as I have in the past.” Siebel noted that his involvement in sales “may have had a greater impact than I previously thought.”
C3.ai anticipates a current-quarter adjusted loss from operations of $49.5 million to $57.5 million, bigger than what analysts expected. It also withdrew its full-year outlook, “given the appointment of a new Chief Executive Officer and the recent restructuring of the sales and services organizations.”
Wedbush wrote to clients that even with a new CEO, “the company still has significant hurdles to overcome to regain the Street’s confidence given the weakness in its operational performance following the sales restructuring.” The analysts maintained their “outperform” rating, but lowered the price target to $20 from $23, “reflecting a lower multiple as the company looks to reverse its current path with new leadership at the helm.”
C3.ai shares recently were down more than 4% at around $16, trading at their lowest level since early 2023.
–Bill McColl
What’s Next for Apple on AI?
58 minutes ago
Apple appears to have lost more AI talent, fueling worries about its progress with the emerging technology. Wall Street doesn’t expect its iPhone 17 launch next week to change that, and some think any enthusiasm for the event could mean a chance to sell the stock.
Apple’s (AAPL) lead AI researcher for robotics, Jian Zhang, has left the company to join Meta (META), Bloomberg reported Tuesday. That would mark the latest in a string of exits, bringing the tally of recent moves from the company’s Foundation Models team—responsible for Apple Intelligence, the AI system built into its devices—to some 10 members, the report said. (Apple and Meta didn’t respond to requests for comment in time for publication.)
The report reinforced some investors’ concern that the iPhone maker lags peers in the space. The Apple iPhone 17 launch event, set for next week, might not fix that impression.
The company has said the event, set to kick off Monday at 7 a.m. ET, will be “awe dropping.” (You’ll be able to watch the streamed event here.) Analysts have suggested it could focus on improvements that wouldn’t change the company’s AI trajectory.
Bank of America analysts told clients last week that they’ll be on the lookout for new AI enhancements, but that investors’ expectations are fairly muted ahead of what could be a “sell-the-news” event, anticipating largely form-factor improvements such as a thinner phone with a better front camera, and an updated Apple Watch portfolio.
Goldman Sachs and Citi analysts echoed those sentiments, with Citi suggesting product launches next year could drive stronger demand, after a series of delays in highly anticipated features like an AI-enhanced Siri.
At the company’s developers conference in June, Senior Vice President of Software Engineering Craig Federighi said the AI Siri features “need more time to reach our high quality bar,” and that more information would be released “in the coming year” following reports they may not be available until 2026.
The iPhone maker had previously suggested they would become available earlier this spring, after teasing them at its developers conference last year, where it unveiled its Apple Intelligence. At the time, Apple’s stock surged on excitement about Apple’s AI story, but that early AI momentum has faded while investors wait for more signs of progress—or an acquisition, after CEO Tim Cook recently told investors Apple would consider buying other companies to boost its AI capabilities.
Bloomberg reported late Wednesday that Apple is currently working on developing a new AI-powered system called “World Knowledge Answers” for launch next year, with plans to integrate it into Siri as part of the delayed revamp, along with its Safari internet browser, among other things.
Apple shares were up slightly in early trading after gaining nearly 4% yesterday on the heels of a favorable antitrust ruling for Google that would allow the iPhone maker to continue receiving payments for preloading Google search products in Apple devices.
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The stock has lost roughly 4% this year so far, making it the only member of the Magnificent Seven in the red for 2025 besides Tesla (TSLA).
–Kara Greenberg
Salesforce Shares Tumble on Soft Guidance
1 hr 58 min ago
Salesforce (CRM) shares fell sharply in premarket trading Thursday, a day after CEO Marc Benioff called the customer-relationship software firm’s soft current-quarter outlook “appropriately conservative.”
After the bell Wednesday, Salesforce reported second-quarter adjusted earnings per share of $2.91 on revenue that increased 10% year-over-year to $10.24 billion. Analysts polled by Visible Alpha were looking for $2.78 and $10.14 billion, respectively.
However, the San Francisco-based firm forecast third-quarter GAAP EPS between $1.60 and $1.62 and revenue between $10.24 billion and $10.29 billion, and analysts were expecting $1.83 and $10.29 billion, respectively. Its adjusted EPS forecast of $2.84 to $2.86 came in a tick above estimates.
“Our results are absolutely fantastic and our guidance is also, you know, is always appropriately conservative,” Benioff told CNBC‘s Jim Cramer Wednesday.
CEO Marc Benioff speaking at the World Economic Forum in Davos, Switzerland, earlier this year.
Halil Sagirkaya / Anadolu / Getty Images
Salesforce shares, a Dow component, were down nearly 7% in recent trading. Through Wednesday’s close, the stock was down 23% in 2025.
–Nisha Gopalan
S&P 500, Nasdaq Futures Tick Higher
2 hr 55 min ago
Futures tied to the Dow Jones Industrial Average were fractionally lower.
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S&P 500 futures rose 0.2%.
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Nasdaq 100 futures added 0.3%.
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