C3.ai (AI) is set to report its fiscal Q1 2026 earnings on Wednesday, September 3. Investors are eager to see if the AI-focused software company can justify the hype amid the broader excitement around artificial intelligence. The stock has been highly volatile this year, sliding more than 50% so far in 2025. While Wall Street remains split on C3.ai stock’s outlook, the sharp pullback may present an attractive near-term upside opportunity.
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For context, C3.ai offers AI software and tools to help businesses work smarter, use data effectively, and improve operations.
What to Expect from C3.ai’s Q1 Earnings
Earlier this month, the company reported preliminary Q1 FY26 results, with total revenue of $70.2–$70.4 million, falling well short of its prior guidance of $100–$109 million. The announcement sent AI stock plunging nearly 30%.
Looking ahead to the official results, analysts expect C3.ai to post a Q1 net loss of $0.21 per share, widening from a loss of $0.05 in the same quarter last year. Meanwhile, revenue is projected at $93.8 million, reflecting 7.6% year-over-year growth but a nearly 14% drop from the prior quarter.
Analysts’ Views on C3.ai Ahead of Earnings
After weak preliminary numbers, D.A. Davidson’s analyst Lucky Schreiner downgraded his rating from Hold to Sell on AI stock, predicting a potential downside of over 20%. Schreiner raised doubts about C3.ai’s ability to maintain steady growth, pointing to its growing dependence on one-time revenue as a key issue behind the disappointing preliminary results. He also struck a cautious tone, warning that the business may worsen before improving, which led him to slash its price target by nearly 50% to $13.
On the other hand, Wedbush’s top-rated analyst Daniel Ives maintained his Buy rating on AI stock but cut his price target from $35 to $23. Ives called Q1 a “brutal quarter” and noted that if C3.ai doesn’t improve soon, the outlook could worsen. Even so, he still kept a Buy rating, giving the company a few quarters to recover.
Is C3.ai a Good Stock to Buy?
According to TipRanks, AI stock has a Hold consensus rating based on three Buys, five Holds, and two Sells assigned in the last three months. The average C3.ai price target of $23.63 implies 40% upside potential from current levels. Year-to-date, AI stock has lost nearly 51%.
