C3.ai (AI) Stock Forecast & Price Target

C3.ai Inc demonstrated strong growth potential by closing 40 partner agreements in the first fiscal quarter, with a notable 54% year-over-year increase in their 12-month qualified opportunity pipeline. The partnership with Microsoft was particularly impactful, contributing to 24 agreements and enhancing the qualified pipeline by 140%. Additionally, there is positive reception for the company's programs, which are expected to drive significant and rapid business growth, indicating a robust outlook for future revenue generation.

C3.ai is projected to experience a year-over-year decline in growth this year, with the expectation of returning to 20%+ growth in the following year, contingent on easier comparisons. The company's non-GAAP gross margins are notably low at approximately 52%, and there is a lack of clarity regarding financial guidance for FY26, which has contributed to an 11% decline in share value during after-hours trading. Additionally, revenue estimates have been reset, with projections indicating that C3.ai may not reach FY25 revenue levels until FY27, suggesting significant challenges ahead for the business.