Top analysts are reacting to C3.ai’s (AI) disappointing first quarter results and the withdrawal of guidance released yesterday. The enterprise AI software company reported a 19.3% year-over-year sales decline to $70.3 million, while its net loss widened drastically to $0.37 per share. The company is currently undergoing leadership changes and a sales strategy overhaul aimed at boosting growth. Shares of AI are down 15% in pre-market trading following the earnings miss.
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KeyBanc analyst Eric Heath reiterated his “Sell” rating on the stock and lowered his price target from $18 to a new Street-low of $10, implying 40% downside potential from current levels.
At the same time, Citizens JMP analyst Patrick Walravens maintained his “Buy” rating but cut his price target to $24 (from $30), implying 44% upside potential.
Here’s Why Analysts Cut AI’s Price Target
Heath cited C3.ai’s “significant Q1 miss,” as the reason for his price target change. He noted that management attributed the disappointing results to a major sales reorganization and CEO Tom Siebel’s health issues. He also pointed out that although FY26 guidance was withdrawn, management expressed comfort with FY26 revenue estimates between $290 million and $300 million.
Walravens also highlighted C3.ai’s disappointing Q1 results and the withdrawn guidance, which he linked to the appointment of Stephen Ehikian as CEO and the restructuring of the sales organization. Despite this, Walravens keeps his Buy rating, viewing the stock as an “attractive opportunity for long-term capital appreciation” following the recent price decline.
Is C3.ai a Good Stock to Buy?
On TipRanks, AI stock has a Hold consensus rating based on three Buys, five Holds, and two Sell ratings. The average C3.ai price target of $23.63 implies 41.7% upside potential from current levels. Year-to-date, AI stock has lost 51.6%.
Please note most of these ratings were issued before the Q1 print and are subject to change once analysts review them.
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