Needham Reaffirms Hold on C3.ai (AI) as Preliminary Results Signal 33% Revenue Decline

C3.ai (NYSE:AI) is one of the best mid cap AI stocks to buy right now. C3.ai (NYSE:AI) is one of the best midcap AI stocks to buy right now. On August 11, 2025, Needham & Company reaffirmed its Hold rating on C3.ai following the company’s preliminary Q1 results, which fell short of expectations. The midpoint of C3.ai’s revenue guidance reflected a year-over-year decline of roughly 33 percent, raising concerns about the company’s near-term trajectory. While many peers in the AI space posted strong growth, C3.ai’s weaker outlook prompted Needham to take a cautious stance and refrain from issuing a price target.

The analyst highlighted multiple headwinds, including a still-ongoing sales restructuring and CEO Tom Siebel’s recent health issues, which have introduced uncertainty around execution. The firm noted that while C3.ai maintains strong visibility in enterprise AI applications, particularly in defense, energy, and manufacturing, the internal disruptions have made the investment case less clear in the short term. Needham did not signal bearishness but emphasized the need to see more consistent growth and organizational stability before considering a more optimistic outlook.

C3.ai is a California-based enterprise AI software company that provides configurable AI solutions for large-scale industries. Its platforms are used by defense agencies, utilities, energy firms, and other complex organizations to implement predictive maintenance, fraud detection, and optimization tools using machine learning and big data integration.

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