Canaccord Raises C3.ai Price Target as Tom Siebel Returns to the CEO Seat

C3.ai (AI) stock received a modest price target increase to $8 from $7 by Canaccord Genuity, following founder Tom Siebel’s return as CEO and preliminary Q4 results showing federal bookings up 134% year over year, though revenue fell 46% year over year to $53.26M.

Siebel’s return signals a potential stabilization turning point for C3.ai after a brutal restructuring period involving a 26% workforce reduction and mounting free cash flow losses.

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Shares of C3.ai (NYSE:AI) caught a modest vote of confidence from Canaccord Genuity on May 13, as the firm raised its price target to $8 from $7 while keeping a Hold rating. The revision follows the release of preliminary Q4 FY2026 results and the announcement that Chairman Tom Siebel will resume his role as chief executive officer. For prudent investors, the call signals cautious acknowledgement that founder leadership and a stabilizing top line may finally be limiting the downside in C3.ai stock.

The price target raise is small in dollar terms, but the symbolism is larger. Siebel, who built Siebel Systems before founding C3.ai, is stepping back into operational control of a company whose stock has badly lagged the broader enterprise AI trade.

Ticker

Company

Firm

Action

Old Rating

New Rating

Old Target

New Target

AI

C3.ai

Canaccord Genuity

Price target raised

Hold

Hold

$7

$8

Canaccord updated its model on C3.ai stock after preliminary Q4 results and the leadership announcement. The retained Hold rating tells investors the firm isn't ready to fully endorse the shares, yet the bump in target acknowledges the leadership shift as a net positive.

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Siebel previously stepped aside in September 2025, citing unanticipated health issues and handed the role to Stephen Ehikian. A founder return often coincides with a critical strategic moment, and Canaccord appears to view it as a stabilizer after a brutal restructuring stretch.

C3.ai sells enterprise AI applications and the C3 Agentic AI Platform, with subscription revenue representing roughly 90% of the mix in Q3 FY2026. Federal and defense work has been the bright spot, with federal bookings up 134% year over year in Q3 FY2026, accounting for 55% of total bookings.

The pressure points are equally clear. C3.ai's Q3 FY2026 revenue fell 46% year over year to $53.26 million, and management announced a 26% workforce reduction targeting roughly $135 million in annual operating expense savings.

C3.ai stock trades at $8.80 as of May 13, leaving it down about 35% year to date and down about 63% over the past year. The 52-week low of $7.67 sits not far below current levels.

Canaccord's new $8 target lands near where C3.ai shares already trade, reinforcing the Hold stance. The broader analyst consensus skews cautious, with 7 Hold, 3 Sell, and 3 Strong Sell ratings against just 1 Buy.

The bull case for C3.ai stock rests on Siebel's hands-on execution, expanding federal contracts, and an enterprise AI demand backdrop that remains one of technology's strongest tailwinds. The bear case is unchanged: heavy competition from Microsoft (NASDAQ:MSFT), Salesforce (NYSE:CRM), and ServiceNow (NYSE:NOW), and a multi-year pattern of missed expectations.

Long-term investors weighing C3.ai shares against alternatives like Palantir Technologies (NASDAQ:PLTR) should treat Canaccord's modest target raise as confirmation of stabilization, not a green light. Moderate position sizing, patience for execution data under Siebel, and attention to cash burn that reached -$56.2 million in free cash flow last quarter remain the right lens.

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