Update shared on06 Sep 2025
Fair value Decreased 25%C3.ai’s consensus price target has been sharply reduced to $16.25, primarily reflecting a marked slowdown in expected revenue growth and a higher future P/E multiple.
What's in the News
- Berger Montague PC announced a class action lawsuit against C3.ai, alleging the company and executives made materially false or misleading statements about growth prospects and the CEO's health; C3.ai shares declined over 25% after disappointing Q1 results and reduced guidance.
- C3.ai withdrew full-year fiscal 2026 guidance in light of CEO transition and sales/service restructuring; the company now provides Q2 fiscal 2026 revenue guidance of $72-80 million.
- Stephen Ehikian was appointed Chief Executive Officer, succeeding Thomas M. Siebel, who will remain Executive Chairman; the transition follows Siebel's diagnosis with an autoimmune disease and significant visual impairment.
- C3.ai announced C3 Agentic AI Websites, a product that transforms websites into interactive, conversational platforms, aiming to drive engagement and conversion with rapid deployment and a $150,000 annual subscription model.
- C3.ai expanded strategic client partnerships: HII to implement AI across shipbuilding operations for the U.S. Navy; Eletrobras to scale C3 AI Grid Intelligence solution across all transmission assets; Univation Technologies to commercialize AI-powered predictive maintenance in the petrochemical industry.
Valuation Changes
Summary of Valuation Changes for C3.ai
- The Consensus Analyst Price Target has significantly fallen from $21.75 to $16.25.
- The Consensus Revenue Growth forecasts for C3.ai has significantly fallen from 16.4% per annum to 4.0% per annum.
- The Future P/E for C3.ai has significantly risen from 56.00x to 62.68x.
Disclaimer
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