C3.ai (NYSE:AI) Announces Quarterly Earnings Results

Key Points

• C3.ai reported a quarterly earnings per share of ($0.86), significantly missing analysts' estimates of ($0.15) by ($0.71).
• The company’s stock fell to $16.66 during trading, with a market cap of $2.24 billion and a PE ratio of -7.44.
• Recent analyst ratings have downgraded C3.ai, with a consensus price target now at $27.43 and a majority rating of "Reduce".

C3.ai (NYSE:AI - Get Free Report) released its quarterly earnings data on Wednesday. The company reported ($0.86) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.65), Zacks reports. The firm had revenue of $70.26 million during the quarter, compared to analysts' expectations of $104.02 million. C3.ai had a negative net margin of 92.08% and a negative return on equity of 40.06%. C3.ai's revenue was down 19.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.05) EPS. C3.ai updated its Q2 2026 guidance to EPS.

C3.ai Stock Performance

Shares of AI traded up $0.12 during mid-day trading on Friday, reaching $15.58. The stock had a trading volume of 12,575,946 shares, compared to its average volume of 12,540,028. The firm has a market cap of $2.09 billion, a price-to-earnings ratio of -5.99 and a beta of 1.96. C3.ai has a 12 month low of $14.70 and a 12 month high of $45.08. The business has a fifty day moving average of $22.24 and a 200 day moving average of $22.64.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on AI. Canaccord Genuity Group cut their target price on shares of C3.ai from $28.00 to $16.00 and set a "hold" rating on the stock in a research note on Friday. Northland Securities cut shares of C3.ai from an "outperform" rating to a "market perform" rating and set a $17.00 target price for the company. in a report on Tuesday, August 12th. Westpark Capital raised shares of C3.ai to a "strong-buy" rating and set a $40.00 target price for the company in a report on Wednesday, July 9th. DA Davidson reissued an "underperform" rating and set a $13.00 price objective (down from $25.00) on shares of C3.ai in a report on Monday, August 11th. Finally, KeyCorp decreased their price objective on shares of C3.ai from $18.00 to $10.00 and set an "underweight" rating for the company in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, seven have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus price target of $23.00.

Insider Activity

In related news, Director John E. Hyten sold 10,000 shares of the company's stock in a transaction on Friday, June 13th. The shares were sold at an average price of $23.75, for a total transaction of $237,500.00. Following the completion of the transaction, the director owned 63,942 shares in the company, valued at approximately $1,518,622.50. This represents a 13.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Thomas M. Siebel sold 601,498 shares of the company's stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $25.02, for a total transaction of $15,049,479.96. Following the transaction, the chief executive officer owned 3,816,802 shares of the company's stock, valued at approximately $95,496,386.04. This represents a 13.61% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 2,162,768 shares of company stock valued at $50,525,604. Company insiders own 26.50% of the company's stock.

Hedge Funds Weigh In On C3.ai

A number of hedge funds and other institutional investors have recently modified their holdings of AI. AQR Capital Management LLC boosted its position in shares of C3.ai by 267.9% during the first quarter. AQR Capital Management LLC now owns 181,354 shares of the company's stock worth $3,788,000 after acquiring an additional 132,056 shares during the last quarter. NewEdge Advisors LLC boosted its position in shares of C3.ai by 48.7% during the first quarter. NewEdge Advisors LLC now owns 2,442 shares of the company's stock worth $51,000 after acquiring an additional 800 shares during the last quarter. Woodline Partners LP bought a new position in shares of C3.ai during the first quarter worth $346,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in C3.ai by 4.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 242,784 shares of the company's stock valued at $5,111,000 after purchasing an additional 10,675 shares during the last quarter. Finally, Focus Partners Wealth lifted its position in C3.ai by 2.6% during the first quarter. Focus Partners Wealth now owns 59,004 shares of the company's stock valued at $1,242,000 after purchasing an additional 1,503 shares during the last quarter. Institutional investors own 38.96% of the company's stock.

About C3.ai

C3.ai, Inc operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information.