Why Wolfe Research Sees More Downside Ahead for C3.ai (AI)

C3.ai, Inc. (NYSE:AI) is one of the AI Stocks Analysts Are Watching Closely. On August 11, Wolfe Research analyst Gal Munda reiterated an Underperform rating on the stock with a $15.00 price target. The rating affirmation follows the company’s first quarter fiscal 2026 results.

On Friday, the company reported that it sees preliminary revenue of $70.2 million-$70.4 million, an estimated 33% below the midpoint of its previous Q1 guidance for $100 million-$109 million.

The adjusted operating loss will be $57.7 million-$59.9 million, almost twice as bad as the $23.5 million-$33.5 million loss that the company had expected.

Company CEO Thomas Siebel said that sales results during the quarter were “completely unacceptable” but driven by “disruptive effect” of the reorganization and his ongoing health issues.

Wolfe Research noted that it believes F1Q26 results have been a “negative surprise that will likely drive shares materially lower despite the restructuring of the sales organization.”

“In July, the company announced a search for a successor to the CEO, and in the 8-K filing (link to filing here), it did not reiterate guidance, which we viewed as a risk to expectations. We believe F1Q26 results were a negative surprise that will likely drive shares materially lower despite the restructuring of the sales organization. Given the disappointing F1Q26 results, we believe FY26 revenue guidance could be revised significantly lower or potentially pulled entirely. Reiterate UP and $15 PT. “

C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.

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