Keybanc Lifts C3.ai’s PT on ‘Slightly Higher Revenue Estimates’

Keybanc analyst Eric Heath lifted on May 28, 2025, C3.ai’s price target to $18 (from $18). The analyst maintained a ‘Underweight’ rating on the stock.

“Reiterate Underweight following a mixed F4Q, in line FY26 revenue guide, and FY26 margin guide above.

F4Q total revenue beat modestly, as upside from Services revenue was mostly offset by a miss on Subscription revenue.

Growth in subscription revenue, we estimate, was again driven by ~3x growth in demo licenses.

Subscription revenue growth excluding demo licenses declined low-20s% y/y by our estimate. FY26 revenue guidance of 15-20% y/y met consensus with mgmt attributing the wide guidance range to macro risks.

FY26 margin guide ~2pts above consensus at the midpoint, and mgmt now expects EBIT profitability in F2H27 and FCF positive in F4Q26 and beyond. We model FY26 revenue 2pts below the guidance midpoint given continued deceleration in subs revenue ex-demo licenses, and continue to model EBIT/FCF losses through FY27.

Raise PT to $18 on slightly higher revenue estimates.”

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