Shares of artificial intelligence software company C3.ai were down in after-hours trading after the company narrowly beat analyst expectations on earnings for the quarter ending in July.

The company reported revenue of $52.1 million and an adjusted loss of 20 cents a share. Analysts were expecting revenue of $52 million on adjusted losses of 26 cents a share.

"The Company has done exactly what a disciplined, focused turnaround should do," CEO Thomas Siebel said.

Shares fell 3% to $10.19 in after-hours trading.

C3.ai, which is led by former Oracle marketing executive Siebel, has had a rough time lately. Its stock has dropped precipitously from its all-time closing high of $177 back in 2020. It's down 20% in 2026 and its shares haven't closed above $20 a share since last August.

Siebel, who founded the company in 2009, announced last July that he was temporarily stepping down as CEO to treat an autoimmune disease that he said affected his vision. The stock fell more than 20% after Siebel later said his health problems had impacted company sales.

Siebel resumed his role in early May. "While my vision remains impaired, it is improving. The health issues I encountered during 2025 are largely resolved," he said at the time.

The company's revenue problems are taking longer to fix. Total revenue increased by less than 2% over the April quarter's figures. Most of that comes from subscription AI software to big businesses and government, which came in at $49.2 million, up less than 2% from the quarter ending in April. A year ago, total revenue was $70.3 million and subscription revenue was $60.3 million.

Investors were likely disappointed by the firm's outlook. For the current quarter, C3.ai is forecasting revenue of $51 million to $55 million, below estimates of $56.6 million among analysts polled by FactSet. Its full year guidance pegs revenue at between $210 million and $240 million, with a midpoint narrowly exceeding estimates of $224.3 million.