Needham Maintains Hold Rating on C3ai Amid Q1 Revenue Growth

Needham analyst Mike Cikos maintains a Hold rating on C3ai, citing the company's latest earnings release, which reported a quarterly revenue of $108.72 million and a GAAP net loss of $79.7 million. Cikos has an average return of 9.6% and a 49.35% success rate on recommended stocks. The analyst consensus is Hold, with a price target consensus of $29.71. Corporate insider sentiment is negative, with 78 insiders selling shares over the past quarter.

Needham analyst Mike Cikos has maintained his Hold rating on C3.ai (NYSE:AI) despite the company's recent earnings report. Cikos cited the company's latest earnings release, which reported a quarterly revenue of $108.72 million and a GAAP net loss of $79.7 million. The analyst, known for his average return of 9.6% and a 49.35% success rate on recommended stocks, has a track record of providing insightful analysis on the technology sector [2].

C3.ai's preliminary first-quarter results showed significant revenue shortfalls, with the company reporting revenue between $70.2 million and $70.4 million, missing the midpoint of its guidance by 33% and declining 19% year-over-year. The stock has declined over 30% in the past six months, reflecting ongoing challenges [2].

The company's overall financial health score is rated as "Weak" by InvestingPro, which offers additional insights into C3.ai's performance. The revenue shortfall more than doubled the company's projected non-GAAP operating loss to $57.8 million, representing an operating margin of -82.2% at the midpoint of the preliminary results [2].

Management attributed the poor performance to a disruptive sales restructuring with new leadership and health issues affecting Chairman and CEO Tom Siebel that limited his participation in the sales process. Siebel noted in the press release that his health has improved dramatically, and the company is scheduled to report its audited financial results on September 3 [2].

Despite the challenges, C3.ai has announced a strategic partnership with Huntington Ingalls (NYSE:HII) Industries to integrate AI solutions in shipbuilding operations. This partnership aims to enhance production efficiency and support the U.S. Navy's fleet readiness [2].

The analyst consensus is Hold, with a price target consensus of $29.71. Corporate insider sentiment is negative, with 78 insiders selling shares over the past quarter [2].

References:
[1] https://uk.investing.com/news/analyst-ratings/needham-maintains-hold-rating-on-c3ai-stock-amid-revenue-miss-93CH-4212216
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U30PY:0-organigram-global-inc-expected-to-post-a-loss-of-1-cent-a-share-earnings-preview/