C3.ai Cuts Target to $15, Guides Q4 Revenue to $48M–$52M
C3.ai reported fiscal Q3 revenue of $53.3 million, including $48.2 million in subscription revenue, and held $621.9 million in cash. Management unveiled a $135 million expense-savings restructuring, guided Q4 revenue to $48.0–$52.0 million and saw Wedbush cut its price target to $15 while retaining an Outperform rating.
1. Q3 Financial Results
C3.ai reported fiscal Q3 ended January 31 revenue of $53.3 million, with subscription revenue at $48.2 million or 90% of total. The quarter generated a non-GAAP gross profit of $19.6 million at a 37% margin and left the firm with $621.9 million in cash and equivalents.
2. Analyst Outlook Adjustment
Wedbush lowered its price target on C3.ai shares to $15 from $20 while maintaining an Outperform rating. The firm cited broad revenue misses and below-street guidance but highlighted progress in shifting toward large-scale enterprise transformations.
3. Cost Restructuring and Guidance
Management announced a restructuring plan aimed at $135 million in annual non-GAAP expense savings, alongside sales organization flattening and cost structure reductions. The company guided fiscal Q4 revenue to a range of $48.0 million to $52.0 million, reflecting a cautious near-term outlook.