03:07 PM EDT, 08/11/2025 (MT Newswires) -- C3.ai's ( AI ) preliminary fiscal first-quarter results were disappointing, with a turnaround required to avoid "darker days" ahead, Wedbush Securities said Monday.

The enterprise artificial intelligence software provider expects a non-GAAP loss from operations of $57.7 million to $57.9 million and revenue of $70.2 million to $70.4 million for the quarter through July 31, it said late Friday. Analysts polled by FactSet are looking for a net loss of $20.4 million and revenue of $101.7 million. Chief Executive Thomas Siebel said in a statement that the sales results were "completely unacceptable."

C3.ai ( AI ) shares were down 26% in Monday late-afternoon trade. The stock has slumped 52% so far this year.

"(It) was a brutal quarter, and if (C3.ai ( AI )) cannot turn this around, darker days could be ahead," Wedbush analyst Daniel Ives said in a Monday note to clients. The brokerage lowered its price target on the stock to $23 from $35 to reflect the "massive" sales miss. Wedbush maintained its outperform rating on the stock, saying it is giving the company "a few quarters" to reverse the negative sales trend.

C3.ai ( AI ) is scheduled to release its first-quarter results Sept. 3.

The company also said Friday it completed a restructuring of its global sales and services organization, including the appointment of Rob Schilling as chief commercial officer.

"With this new team leading the sales organization to capitalize on the significant opportunity ahead, the company addressed a significant hole and major issues with its performance in the quarter, but it will take lots of time to regain (Wall) Street confidence and build further momentum in the stock given the weakness in its operational performance," Ives wrote.

C3.ai ( AI ) recently said Siebel will step down due to health issues. The development prevented him from being active within the sales process, which had a "major impact" on getting deals done in the quarter, Wedbush said.

The company is "moving expeditiously to identify some excellent (CEO) candidates in short order," Siebel said Friday.

Price: 16.60, Change: -5.54, Percent Change: -25.01