Keybanc Lowers Price Target on C3.AI

KeyBanc analyst Eric Heath lowered on September 4, 2025, the price target on C3.AI to $10 (from $18) while maintaining an ‘Underweight’ rating on the stock.

“F1Q Consistent with Pre Announcement, FY26 Guide Withdrawn and New CEO Named;

Reiterate Underweight following a significant F1Q miss, consistent with the pre-announcement, which management attributes to the significant sales reorganization and CEO Tom Siebel’s health issues.

F2Q guided significantly below, as well.

While FY26 guidance was withdrawn, management was comfortable with revenue estimates between $290M-$300M (-25% to -23% y/ y).

Management expects to provide FY26 guidance again after F2Q earnings.

Stephen Ehikian, named the new CEO, previously founded two companies eventually sold to Salesforce and was most recently Deputy Administrator of the General Services Administration (GSA).

Tom Siebel as Executive Chairman will continue focusing on strategic partner relationships, strategic customer relationships, and keep an eye on direction and product strategy going forward.

We significantly lower our revenue estimates for FY26/FY27 to $295M/$308M from $459M/$522M and project large FCF losses through FY28.

As such, we lower our downside PT to $10.”

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