C3.ai (NYSE:AI) Issues Earnings Results, Beats Estimates By $0.05 EPS

C3.ai (NYSE:AI) released its quarterly earnings data on Wednesday. The company reported ($0.33) EPS for the quarter, beating analysts’ consensus estimates of ($0.38) by $0.05, FiscalAI reports. C3.ai had a negative return on equity of 55.40% and a negative net margin of 141.35%.The firm had revenue of $51.60 million for the quarter, compared to analysts’ expectations of $51.60 million. During the same period in the prior year, the firm posted ($0.16) earnings per share. The firm’s quarterly revenue was down 52.5% on a year-over-year basis.

Here are the key takeaways from C3.ai’s conference call:

• C3.ai posted Q4 revenue of $51.6 million, with a non-GAAP operating loss of $54.4 million and negative free cash flow of $54.8 million, underscoring continued profitability and cash burn challenges.
• Management said it has completed a major restructuring, cutting headcount from about 1,075 to roughly 700 and taking out about $135 million in annual operating costs.
• The company closed the quarter with $575.4 million in cash and marketable securities, and later noted the balance rose to $673 million after CEO Tom Siebel purchased 6.17 million shares for about $69 million.
• Leadership repeatedly characterized the business performance as a sales execution failure, saying the company has focused too narrowly and that revenue growth, RPO, and cash generation have all been hurt by weak go-to-market execution.
• For fiscal 2027, C3.ai guided to $210 million-$240 million in revenue and a non-GAAP operating loss of $128 million-$160 million, while saying it expects professional services to remain 10%-15% of total revenue and that the mix between licenses, PES, and demos is still hard to predict.

C3.ai Stock Performance

Shares of AI opened at $10.71 on Thursday. C3.ai has a fifty-two week low of $7.68 and a fifty-two week high of $30.11. The company has a market capitalization of $1.56 billion, a price-to-earnings ratio of -3.40 and a beta of 2.04. The firm has a 50-day simple moving average of $9.10 and a 200-day simple moving average of $11.16.

Analysts Set New Price Targets

AI has been the topic of a number of research analyst reports. UBS Group reissued a “reduce” rating on shares of C3.ai in a research report on Thursday, February 26th. Wedbush reissued an “outperform” rating and issued a $15.00 target price on shares of C3.ai in a research report on Wednesday, May 13th. KeyCorp cut their target price on C3.ai from $10.00 to $6.00 and set an “underweight” rating on the stock in a research report on Thursday, February 26th. Wolfe Research reissued an “underperform” rating and issued a $6.00 target price on shares of C3.ai in a research report on Thursday, February 26th. Finally, BMO Capital Markets set a $7.00 target price on C3.ai in a research report on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have issued a Hold rating and six have given a Sell rating to the stock. According to MarketBeat.com, C3.ai presently has an average rating of “Reduce” and an average target price of $12.85.

C3.ai News Summary

Here are the key news stories impacting C3.ai this week:

• Positive Sentiment: C3.ai beat quarterly expectations, reporting a smaller-than-expected loss of $0.33 per share versus estimates of a $0.38 loss, while revenue of $51.6 million matched Wall Street’s forecast. C3.ai Inc (AI) Q4 2026 Earnings Call Highlights: Navigating Challenges and Strategic Restructuring
• Positive Sentiment: Management issued fiscal Q1 2027 revenue guidance of $50 million to $54 million and FY 2027 revenue guidance of $210 million to $240 million, both roughly in line with or slightly above consensus, which helped support sentiment. C3 AI Announces Fiscal Fourth Quarter and Full Fiscal Year 2026 Results
• Positive Sentiment: Investors also reacted favorably to signs of restructuring and a renewed focus on sales execution, along with the return of founder Tom Siebel as CEO and a reported $69 million cash injection, which reinforced turnaround hopes. AI Stock Jumps 3% After-Hours — Founder Siebel Returns As CEO With $69M Cash Injection

Insider Transactions at C3.ai

In other news, CFO Hitesh Lath sold 15,248 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $8.98, for a total transaction of $136,927.04. Following the completion of the sale, the chief financial officer owned 238,308 shares in the company, valued at approximately $2,140,005.84. This represents a 6.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Thomas M. Siebel sold 17,350 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $11.32, for a total transaction of $196,402.00. Following the sale, the chief executive officer owned 6,904,415 shares of the company’s stock, valued at $78,157,977.80. This trade represents a 0.25% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 1,610,039 shares of company stock worth $13,935,574. Company insiders own 26.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Strs Ohio purchased a new position in C3.ai during the first quarter worth about $177,000. Summit Financial LLC purchased a new position in C3.ai during the fourth quarter worth about $148,000. Rafferty Asset Management LLC purchased a new position in C3.ai during the fourth quarter worth about $140,000. Abel Hall LLC purchased a new position in C3.ai during the fourth quarter worth about $136,000. Finally, Equitable Holdings Inc. purchased a new position in C3.ai during the fourth quarter worth about $136,000. 38.96% of the stock is owned by hedge funds and other institutional investors.

C3.ai Company Profile

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company’s core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.