C3.ai Shares Drop 19.7% on Q3 Miss and 26% Layoffs
C3.ai plunged 19.7% after reporting Q3 revenue of $53.26 million, well below the $76 million consensus, and posting a larger-than-expected GAAP loss. The enterprise AI vendor announced a 26% workforce reduction and cut Q4 revenue guidance to $48–52 million, signaling intensifying turnaround challenges.
1. Q3 Earnings Miss
C3.ai reported Q3 revenue of $53.26 million, down 46.1% year-over-year and well under the $76 million analysts expected, while its GAAP loss widened to $0.94 per share, missing consensus estimates.
2. Workforce Reduction
The company initiated a 26% headcount cut to rein in costs, as executives acknowledged prior spending missteps and the need to stabilize its business model.
3. Q4 Revenue Guidance
Management guided Q4 sales to a range of $48–52 million, considerably below the $78 million street forecast, reflecting weaker demand and ongoing integration challenges.
4. Stock Reaction
Following the earnings report and layoffs announcement, shares tumbled nearly 20%, marking one of the largest intraday drops in C3.ai’s trading history as investors reassess growth prospects.