MIT’s AI Report Debunks Q2 2026 Company Results

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This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

C3 AI, an enterprise AI solutions provider, saw its stock decline by about 12 percent after it issued a subpar earnings report for fiscal Q1 2026 and announced the replacement of its CEO as part of ongoing restructuring efforts.

C3 AI offers two main products: an agentic AI platform that provides pre-built, low-code/no-code applications to automate routine corporate tasks, and a generative AI platform that integrates large language models (LLMs) with enterprise data for seamless interaction.

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October 8, 2025

For the first quarter of 2026, C3 AI reported $70.3 million in revenue, far below the expected $94.5 million. The company’s earnings per share (EPS) were -$0.37, significantly worse than the consensus estimate of -$0.20. It also reported a non-GAAP gross profit of $36.3 million, representing a 52 percent margin.

C3 AI provided an ultra-conservative guidance for its Q2 2026 revenue, projecting between $72 million and $80 million, compared to the expected $99.6 million. For Q3 and FY 2026, the company withheld specific guidance due to ongoing sales challenges.

A rare positive note came when C3 AI appointed Stephen Ehikian as its new CEO, effective September 1st, bringing extensive AI expertise and leadership experience to the role.

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During the earnings call, C3 AI’s chairman, Thomas Siebel, declared that the recent results were “completely unacceptable in virtually every respect.” He cited restructuring-induced confusion among key sales personnel and his own illness as reasons for the poor performance.

In a rebuttal to a recent MIT report suggesting that 95 percent of enterprise generative AI projects do not generate returns, Siebel stated that a majority of C3 AI’s LLM deployments were successful due to its comprehensive solutions approach.

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