Tom Siebel, CEO of C3.ai, offered a candid assessment of his company's recent performance during an interview with Jon Fortt on CNBC's 'Closing Bell Overtime.' The discussion centered on C3.ai's preliminary Q1 2026 financial results, which saw its stock plunge, and the subsequent reorganization of its sales and services teams. Siebel's transparency provided a rare glimpse into the challenges even established tech leaders face in volatile markets.
Addressing the significant drop in C3.ai's stock, which hit a two-year low, Siebel pulled no punches. He unequivocally stated, "Honestly, John, the sales execution was just completely unacceptable." This direct admission of a core operational failure, rather than deflecting blame, is a critical insight for founders and investors evaluating leadership. He further acknowledged the market's reaction, asserting that the stock "is taking a beating by the market, and honestly, I think it's well deserved." This level of self-reflection from a public company CEO is uncommon and suggests a genuine commitment to addressing underlying issues.
In a striking moment of candor, Siebel also disclosed a series of severe health issues over the past seven to eight months, including an autoimmune attack, open-heart surgery, and pulmonary surgery. He admitted, "in hindsight, I think maybe I had a little bit more impact on the sales process than I thought," acknowledging his reduced ability to actively participate in sales.
Siebel also attributed some of the sales execution issues to a significant leadership transition, noting that an influx of new senior sales leadership "caused some confusion in sales management." Despite these immediate setbacks, he articulated a clear path forward, framing the current situation with a powerful metaphor: "This is a punctuation mark. It's not the end of the story." He drew historical parallels, reminding viewers that tech giants like Oracle, Amazon, Nvidia, and Apple have all experienced multiple quarterly misses in their journeys. This perspective underscores a seasoned founder's long-term vision, emphasizing that short-term volatility is often part of a larger growth narrative.
Looking ahead, Siebel confirmed his transition to Executive Chairman, a role where he intends to focus on product strategy, partner relationships, and significant customer relationships. He believes these are the areas where he can best contribute, and where he "will spend my time." The company is actively seeking a new CEO, and Siebel's continued involvement in a strategic capacity aims to ensure the new leader can realize the full potential of C3.ai in the evolving AI landscape.
