In a report released on August 8, Joshua Tilton from Wolfe Research maintained a Sell rating on C3ai, with a price target of $15.00.
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Joshua Tilton has given his Sell rating due to a combination of factors affecting C3.ai’s financial performance. The company recently reported preliminary results for the first quarter of fiscal year 2026, which fell significantly short of their own guidance. Specifically, the total revenue was $71.3 million, which was $34 million below the expected $104.5 million, representing a 33% miss. Additionally, the non-GAAP operating loss was $57.8 million, which was $29.3 million worse than the anticipated $28.5 million loss.
These disappointing results were attributed to the CEO’s health issues, which hampered his ability to engage in sales execution, and a major restructuring of the global sales and services organization. The restructuring included leadership changes, such as the promotion of Alex Amato to lead professional services and customer operations. Despite these organizational changes, the negative surprise in financial performance is expected to impact the stock price adversely. Consequently, there is a concern that the fiscal year 2026 revenue guidance may be significantly revised downward or even withdrawn entirely.
According to TipRanks, Tilton is a 3-star analyst with an average return of 6.7% and a 50.00% success rate. Tilton covers the Technology sector, focusing on stocks such as Fortinet, CyberArk Software, and CrowdStrike Holdings.
In another report released yesterday, D.A. Davidson also downgraded the stock to a Sell with a $13.00 price target.