Why Wedbush Stayed Bullish on C3.ai (AI) Despite a Weak Quarter

C3.ai, Inc. (NYSE:AI) is one of the cheap AI stocks to buy in 2026. However, due to their recent quarterly results, some analysts are cautious but still optimistic.

On February 26, 2026, Wedbush analyst lowered its price target on C3.ai to $15 from $20 but maintained an Outperform rating. The Fly summary said Wedbush cited weaker-than-expected fiscal third-quarter results, broad misses, and guidance below street expectations, while noting the company’s shift toward large-scale enterprise transformations.

C3.ai had reported fiscal third-quarter 2026 results on February 25, 2026, for the quarter ended January 31, 2026. The company posted total revenue of $53.3 million, including $48.2 million in subscription revenue, with subscription revenue making up 90% of total revenue. Combined subscription and prioritized engineering services revenue was $51.5 million, or 97% of total revenue. C3.ai also reported GAAP gross profit of $9.2 million (17% margin), non-GAAP gross profit of $19.6 million (37% margin), and non-GAAP net loss per share of $0.40. Cash, cash equivalents, and marketable securities totaled $621.9 million.

Management said it had reduced cost structure and cash burn, restructured and flattened the sales organization, focused on core applications, and shifted go-to-market efforts toward enterprise-wide transformations. The company also announced a restructuring plan expected to deliver about $135 million in annual non-GAAP operating expense savings and guided fiscal Q4 revenue to $48.0 million to $52.0 million.

C3.ai, Inc. (NYSE:AI) is an enterprise AI application software company that offers the C3 Agentic AI Platform, industry-specific AI applications, and C3 Generative AI products for enterprise use cases.

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