Oppenheimer Reduces C3.AI’s Rating to ‘Perform’

Oppenheimer analyst Timothy Horan downgraded on August 12, 2025, c3.ai’s rating from ‘Outperform’ to ‘Perform.’

“We are downgrading C3.ai to Perform and removing our $45 price target following extremely weak preliminary 1Q26 results.

The company significantly lowered revenue expectations for 1Q26, from ~$105M to ~$70M, implying a 35% sequential decline and a major concern given the recurring nature of its Subscription revenues, suggesting the services are not working as advertised.

Non-GAAP operating loss was also increased, from -$29M to -$58M. CEO and founder Tom Siebel will be stepping down due to health issues.

We are concerned that these results indicate secular weakness in underlying trends.

The company is very difficult to forecast, but we are reducing estimates dramatically.

Hopefully the earnings call provides more color.”

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