Important points
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Thomas Siebel returned to C3.ai as CEO in early May.
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C3.ai’s business has struggled to grow, and its stock price has stagnated.
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Siebel was once an integral part of the company’s sales process.
Technology company stocks C3.ai (NYSE:AI) The business has struggled to deliver strong growth, plummeting 59% in the past 12 months. The company has well over 100 artificial intelligence (AI) turnkey solutions for enterprises, but sales have declined in recent quarters.
Last year, the company’s CEO and founder, Thomas Siebel, announced he was stepping down due to health reasons. Stephen Ehikian took over as of September 1, 2025. Since then, business conditions have not improved, and C3.ai was at one point considering selling. But recently, the AI company announced that Siebel was returning as CEO. Will Siebel, who has been a central figure in the company’s sales process, be able to help turn the business around?
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C3.ai’s struggles are reflected in its slow growth
There’s little mystery as to why C3.ai’s stock price has languished in recent years, and it’s because the company involved in AI solutions hasn’t been growing. As demand for everything related to AI increases, C3.ai’s business is struggling, which is a very worrying sign.
AI Revenue (Quarterly YoY Growth) Data by YCharts
The company announced preliminary fourth-quarter results on May 12, with sales totaling $51.6 million for the period ended April 30. This is a significant decrease from $108.7 million a year ago. Last year, when the company’s sales began to decline, Siebel said health issues prevented him from being as involved in the sales process as he used to, and he believed that was the cause of the company’s poor performance.
But now that Siebel has returned (as of May 8) and his health issues have improved, there is renewed hope that the company could deliver even stronger growth rates in the coming quarters.
Why the stock is still too risky to buy at this time
C3.ai’s share price has been underperforming, and with a market cap of around $1.4 billion, it may seem cheap these days, but the stock still carries considerable risk. In addition to the lack of growth, the company remained unprofitable, which was a problem even under Siebel’s administration. In a competitive AI market where companies have many different types of solutions to choose from, C3.ai needs to prove that its products and services are in high demand and that the business has a path to profitability.
Siebel’s return may help revitalize business, but it’s no guarantee the company will be on a stronger trajectory. C3.ai has a lot to prove, and until it can prove itself to be a top growth stock with a stronger financial position, I’d avoid it given the risks it continues to face.
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David Jagielski, CPA has no position in any stocks mentioned. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
