According to The Information, artificial intelligence (AI) company C3.ai (AI) is considering a merger with privately held Automation Anywhere. The talks remain in very early stages, with no price details yet, and they could fall apart. Notably, Automation Anywhere could acquire C3.ai in a deal that takes the combined entity public.
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C3.ai’s stock has plunged more than 61% over the past year due to ongoing leadership challenges in a fiercely competitive market and prolonged bottom-line losses. Analysts have long cited C3.ai as a potential takeover target.
What Do These Companies Do?
C3.ai builds enterprise AI software for clients like the U.S. Air Force, government agencies, energy firms, and manufacturers to develop and operate large-scale AI applications. C3.ai has a current market capitalization of $1.77 billion, making it an easy acquisition target.
Automation Anywhere is a leading provider of robotic process automation (RPA) software. It now focuses on agentic process automation, combining RPA, AI, and generative AI for end-to-end enterprise workflows, positioning it as a market leader in digital transformation. Automation Anywhere’s last known valuation was $6.8 billion in 2019.
What Financials Are Saying
During C3.ai’s Q2FY26 results, the company posted a narrower-than-estimated adjusted loss of $0.25 per share, but wider than the prior year period’s loss of $0.06 per share. Sales fell 20.4% year-over-year to $75.1 million, easily beating the consensus of $74.9 million.
Meanwhile, Automation Anywhere announced robust third-quarter results, fueled by accelerating enterprise AI adoption. AI bookings surged 45% year-over-year, representing over 70% of total bookings. Remaining Performance Obligations (RPO) grew more than 20% year-over-year, signaling strong customer commitment. The company maintained financial and operational discipline, delivering topline growth, another quarter of non-GAAP profitability, and consistent free cash flow.
Is C3.ai a Good Stock to Buy?
Analysts remain cautious about C3.ai’s long-term prospects. On TipRanks, AI stock has a Hold consensus rating based on one Buy, four Holds, and three Sell ratings. The average C3.ai price target of $15.17 implies 20.4% upside potential from current levels.
