UBS Cuts C3.AI’s Price Target to $23
UBS analyst Radi Sultan lowered on August 11, 2025, the price target on c3.ai to $23 (from $27) while maintaining a ‘Neutral’ rating on the stock.
“C3 AIpreannounced in conjunction with a sales reorg and F1Q26 results that were very far below expectations with 1Q26 revs of $70.3m (-19% y/y) vs guidance of $104.5m (+20% y/y) at the midpoint.
While we concluded that the FY26 guide was aggressive in our mid-June thesis refresh, the magnitude of the miss surprised us and we believe was a factor of C3’s revs mix with nearly 50% ($51m) of revs coming from one-time License+PES revenue in 4Q25.
The company pinned these results on a combination of the sales reorg and the CEO’s health issues impacting his ability to “actively participate in the sales process”.
It’s hard for us to decipher what exactly drove the magnitude of the shortfall without the revs breakdown (full release in early September).
This preannounce underscores our primary reason for remaining on the sidelines–we have little visibility into key revenue drivers (License+PES, Pilot revs, BKR/Oil & Gas revs mechanics).”
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
