Shares of C3.ai (AI) experienced a volatile session on Wednesday, closing the regular trading day down 4.2% at $10.71 before rebounding 2.2% in after-hours activity to reach $10.95. The late-session recovery came after the enterprise artificial intelligence software firm reported fiscal fourth-quarter revenue that surpassed Wall Street expectations, providing some relief to investors amid a broader market downturn.
For the quarter ended April 30, 2026, C3.ai posted revenue of $51.6 million, exceeding the consensus estimate of $50.23 million. Subscription revenue accounted for $48.4 million, or 94% of total revenue. On a non-GAAP basis, the company reported a loss of $0.33 per share, narrower than the anticipated loss of $0.37 per share. Non-GAAP results exclude restructuring charges and stock-based compensation.
Despite the quarterly beat, the company's outlook for fiscal 2027 raised concerns. C3.ai guided for full-year revenue in the range of $210 million to $240 million, a decline from the $250.3 million reported in fiscal 2026. The company also projected a non-GAAP operating loss of $128 million to $160 million, an improvement from the $217.8 million loss in fiscal 2026. For the first quarter of fiscal 2027, revenue is expected to be between $50 million and $54 million.
Founder Thomas Siebel has resumed the role of chief executive officer, vowing to restore investor confidence after a challenging year marked by slow sales, layoffs, and executive turnover. Siebel described the company's recent sales performance as "entirely unacceptable" and "surreal," but expressed optimism with a simple "Game on." To demonstrate his commitment, Siebel purchased 6.17 million shares of C3.ai at $11.16 per share. As of June 3, the company reported cash, cash equivalents, and marketable securities totaling $673 million, inclusive of proceeds from that purchase.
The broader market context added to the pressure. The S&P 500 fell 0.74%, and the Dow Jones Industrial Average declined 1.21% on Wednesday, according to MarketWatch. AI software stocks were particularly weak, with Palantir Technologies (PLTR) dropping 6.6%, Microsoft (MSFT) slipping 3.2%, and SoundHound AI (SOUN) tumbling 8.5%. C3.ai traded on significantly higher volume than usual as earnings anticipation drew increased interest.
C3.ai has been undergoing a major restructuring. In February, Reuters reported that the company was eliminating 26% of its global workforce and targeting a 30% reduction in non-wage expenses by late 2027, following lackluster results and a soft sales forecast. The risk remains that if the new sales team fails to secure contracts, cost-cutting alone may only reduce cash burn without driving sustainable growth.
The company's after-hours bounce offered some respite, but shares remain well below their 52-week high of $30.11. With Siebel back at the helm and a focus on narrowing losses, the question is whether C3.ai can transition from cost-cutting to genuine revenue expansion. Investors may be running out of patience as the company navigates this critical juncture.
