C3.ai (AI) is scheduled to report its second-quarter fiscal 2026 results after the market closes on December 3, 2025. Analysts expect C3.ai to report a noticeable decline in both sales and earnings as the artificial intelligence (AI) firm grapples with leadership challenges in a highly competitive market and lacks a clear path to profitability.
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C3.ai is an enterprise AI application software company that delivers large-scale AI solutions across three segments: C3 Agentic AI Platform, C3 AI applications, and C3 Generative AI.
Recently, reports speculated that C3.ai is weighing an outright sale after its founder and CEO Thomas Siebel stepped down due to health issues. However, the process remains in early stages, with alternatives like private investment also under discussion, and no official company comments.
Expectations from C3.ai
Wall Street expects C3.ai to report an adjusted loss of $0.33 per share, significantly wider than the prior year period’s loss of $0.06 per share. Similarly, sales are projected to decline 20.6% year-over-year to $74.86 million.
Meanwhile, the management has guided for Q2 revenue in the range of $72 to $80 million, implying a 15% to 24% year-over-year drop, and non-GAAP operating losses between $49.5 million and $57.5 million. It is worth mentioning that C3.ai has exceeded consensus expectations in seven of the past eight quarters.
Despite having a large total addressable market (TAM) of about $2 trillion, C3.ai’s execution and leadership challenges continue to put pressure on the stock’s performance. Following its Q1 FY26 earnings miss and withdrawal of full-year guidance, shares have declined more than 15%. Nonetheless, the company has undertaken a sales restructuring under new CEO Stephen Ehikian.
Is C3.ai a Good Stock to Buy?
Analysts remain highly cautious about C3.ai’s long-term outlook until more clarity is sought on key issues. On TipRanks, C3.ai stock has a Moderate Sell consensus rating based on one Buy, six Holds, and five Sell ratings. The average C3.ai price target of $14.80 implies 4.5% upside potential from current levels. Year-to-date, AI stock has lost nearly 62%.
