C3.ai Stock Falls As Analysts Flag Sharp Sales Decline And Wider Losses – C3.ai (NYSE:AI)

The artificial intelligence sector has been experiencing rapid growth and transformation, attracting significant investor interest in recent years. However, navigating the volatility and challenges faced by AI firms remains a crucial concern for stakeholders.

Shares of C3.ai Inc AI were down in early trading on Thursday, after the company reported disappointing fiscal first-quarter results.

Here are some analyst takeaways.

Check out other analyst stock ratings.

Citizens JMP Securities: The company reported disappointing quarterly results, with revenue of $70.3 million missing the consensus of $94.6 million, Walravens said in a note. Non-GAAP loss of 37 cents per share came in worse than the expectations of a loss of 20 cents per share, he added.

C3.ai withdrew its fiscal 2026 guidance due to the new CEO, Stephen Ehikian, stepping in and the restructuring of the sales organization, the analyst stated. “While the company undergoes significant changes including the transition to a new CEO and the restructuring of its sales org, we view the stock as an attractive opportunity for long-term capital appreciation,” he further wrote.

Needham: The company’s total revenue declined 19% year-on-year, while subscription revenue declined 18% “due to go to-market changes and turnover of sales leadership,” Cikos wrote. Management’s revenue outlook of $72.0 million-$80.0 million for the fiscal second quarter missed the sell-side forecast of $99.5 million, he added.

Management guided to a non-GAAP operating loss of $49.5-$57.5 million, much worse than the consensus of a loss of $32.3 million, the analyst stated. C3.ai announced Ehikian had already taken over as the new CEO on Sept. 1.

AI Price Action: C3.ai shares were down 3.24% at $16.14 at the time of publication on Thursday. The stock is trading near its 52-week low of $14.70, according to Benzinga Pro data.

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