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Investing.com - Northland downgraded C3.ai (NYSE:AI) from Outperform to Market Perform and set a price target of $17.00 following the company’s preliminary results that missed analyst expectations. The stock has declined nearly 30% in the past week and 49% over the last six months, with shares currently trading well below InvestingPro’s Fair Value estimate.
The research firm noted that C3.ai’s revenue came in below their estimates, with subscription revenue also falling short of projections. Northland expressed particular concern about the subscription revenue miss, as this revenue stream typically offers better quarterly visibility.
The downgrade comes at a time when enterprise AI demand remains strong across the market, making C3.ai’s underperformance more notable in the current business environment.
C3.ai has announced a reorganization alongside its preliminary results, though specific details about the restructuring were not provided in the analyst note.
Despite the revenue concerns, Northland acknowledged that C3.ai maintains a healthy cash position of approximately $712 million.
In other recent news, C3 AI reported preliminary first-quarter fiscal 2026 revenue of approximately $70.3 million, marking a 19% decline year-over-year and falling significantly short of the company’s guidance of $104.5 million. This revenue miss prompted several analyst reactions, with UBS lowering its price target for C3 AI to $23.00 while maintaining a Neutral rating. Similarly, Wedbush reduced its price target to $23.00 from $35.00, citing the quarter as particularly challenging, but maintained an Outperform rating. Needham maintained a Hold rating on the stock, highlighting the company’s revenue shortfall in its preliminary results. Wolfe Research reiterated its Underperform rating and set a $15.00 price target, noting concerns about the company’s search for a new CEO and lack of reiterated guidance. Additionally, C3 AI launched a Strategic Integrator Program, allowing partners to license its Enterprise AI platform and retain intellectual property rights for developed products. This initiative aims to provide partners with access to C3 AI’s developer community and resources.
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