Analysts Adjust Price Targets for C3.ai After Earnings Report

Author: Owen Jenkins Updated: 09-04-2025 02:58 PM

C3.ai Faces Analyst Revisions Following Earnings Miss

C3.ai Inc (NYSE: AI) has recently captured the attention of investors and analysts alike after announcing its first-quarter earnings report, which unfortunately did not meet expectations

First Quarter Financial Performance

The company reported revenue of $70.26 million, falling short of analyst projections of $94.58 million. This discrepancy has raised concerns about the company's growth trajectory. More troubling for shareholders, C3.ai also reported an adjusted loss of 37 cents per share, which was significantly higher than the anticipated loss of 20 cents per share.

CEO's Perspective

In response to the disappointing financial results, Thomas Siebel, the chairman of C3.ai, acknowledged both the challenges and the changes underway within the company. "While we have restructured our sales and services organization and appointed new leadership, financial performance in Q1 was completely unacceptable," Siebel stated. His remarks reflect the company’s commitment to overcoming hurdles through leadership changes and a renewed focus on customer success.

Market Reaction to Earnings

Following the earnings announcement, C3.ai shares experienced a decline, falling 4.2% to a trading price of $15.98. This decline reflects the market's reaction to the unmet expectations and the ongoing struggles faced by the firm.

Analyst Price Target Changes

In the wake of this earnings report, several analysts have revised their price targets for the company:

Keybanc analyst Eric Heath maintained an Underweight rating and significantly lowered the price target from $18 to $10.
JMP Securities analyst Patrick Walravens kept a Market Outperform rating while reducing the price target from $30 to $24.
UBS analyst Radi Sultan held a Neutral stance and also adjusted the price target downward from $23 to $16.

Insights for Potential Investors

For those considering investing in AI stock, the recent adjustments made by analysts provide valuable insights. While the company is taking steps to amend its operations and leadership, prospective investors must weigh these changes against the risks highlighted by the disappointing financial performance. The outlook for C3.ai remains cautiously optimistic as stakeholders await the impact of the recent transformations on future business outcomes.

Frequently Asked Questions

What were C3.ai's earnings results for the first quarter?

C3.ai reported a revenue of $70.26 million and an adjusted loss of 37 cents per share, missing analyst estimates.

How did analysts respond to C3.ai's earnings report?

Analysts have lowered their price targets for the stock, with substantial reductions from several investment firms.

What changes did C3.ai make in response to its earnings?

The company restructured its sales and services organization and appointed new leadership to enhance growth and customer success.

What is the current stock performance of C3.ai?

C3.ai shares fell to $15.98 following the earnings announcement, reflecting a 4.2% decline.

What should potential investors consider with C3.ai?

Potential investors should evaluate the risks associated with the recent earnings miss and the changes within the company while considering future growth potential.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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