Update shared on21 Sep 2025
Fair value Decreased 9.74%The downward revision in C3.ai's consensus price target primarily reflects sharply reduced revenue growth forecasts and a higher future P/E multiple, resulting in a lower fair value estimate of $14.67.
What's in the News
- C3.ai launched new agentic AI products, including C3 AI Agentic Process Automation, which automates business and operational workflows via autonomous AI agents, and C3 Agentic AI Websites, which transforms company websites into interactive, conversational platforms to optimize user engagement.
- SMX and C3.ai formed a three-year strategic integration partnership to deliver secure, AI-driven solutions to government and commercial clients, focusing on high-security environments and compliance with stringent federal standards.
- C3.ai announced leadership changes with Stephen Ehikian appointed CEO, following Tom Siebel's decision to step down due to health issues; Ehikian brings extensive AI and enterprise software experience from roles at Salesforce and as Acting Administrator of the GSA.
- The company withdrew full-year fiscal 2026 guidance due to executive transition and organizational restructuring, but issued Q2 revenue guidance of $72–$80 million after preliminary Q1 results showed revenue of $70.2–$70.4 million and significant operating losses.
- A class action lawsuit was filed against C3.ai alleging misleading statements regarding growth prospects and the CEO’s health, following a sharp drop in share price after disappointing financial results and guidance cuts.
Valuation Changes
Summary of Valuation Changes for C3.ai
- The Consensus Analyst Price Target has fallen from $16.25 to $14.67.
- The Consensus Revenue Growth forecasts for C3.ai has significantly fallen from 4.0% per annum to -2.7% per annum.
- The Future P/E for C3.ai has significantly risen from 62.68x to 73.56x.
Disclaimer
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