AI software company C3.ai (AI) will report its Fiscal Q2 2026 earnings after the market closes on December 3. Analysts expect revenue to fall year-over-year to about $74.9 million. As a result, the company is also forecast to post an adjusted loss of $0.33 per share. For reference, in the previous year’s quarter, C3.ai brought in $94.34 million in revenue, which had beaten expectations. Most of that revenue, approximately 86%, came from subscription services, as illustrated in the image below.
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C3.ai’s sales are lower mainly due to the company’s internal shake-up, which disrupted its sales team. Former CEO Thomas Siebel explained that reorganizing the sales and services divisions caused short-term confusion, which hurt the company’s ability to close deals.
He also said his own unexpected health issues kept him from being as involved in the sales process as usual, adding to the slowdown. Together, these problems led C3.ai to miss revenue expectations in Q1 and seem to be the reason why sales expectations remain depressed.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 12% move in either direction.
What Is the Price Target for AI Stock?
Overall, analysts have a Moderate Sell consensus rating on AI stock based on one Buy, six Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AI price target of $14.80 per share implies 5.1% upside potential.
