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C3ai
(NYSE:AI)
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Rating:50Neutral
Price Target:
$9.00
▼(-2.60% Downside)
Action:Reiterated
Date:06/05/26
The score is held back primarily by deteriorating financial performance (revenue decline, margin compression, larger losses, and heavier cash burn). Offsetting factors include a debt-light balance sheet and earnings-call evidence of meaningful cost discipline and liquidity/insider confidence, while technicals show improving near-term momentum but a still-weak longer-term trend; valuation remains difficult to anchor due to negative earnings and no dividend.
Positive Factors
Strong liquidity and insider confidence
A conservatively levered balance sheet with roughly $673M in liquidity after the CEO's purchase provides a multi-quarter cash cushion, reducing immediate solvency risk. Insider buying signals management confidence and helps extend runway while the company executes cost reductions, lowering near‑term financing pressure.
Negative Factors
Revenue decline and margin compression
A sharp revenue decline alongside a dramatic fall in gross margin signals weakening monetization and adverse mix or pricing dynamics. Such structural deterioration erodes the company's ability to leverage fixed costs, prolongs losses, and makes sustained profitability harder to achieve even after cost cuts, increasing execution risk over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and insider confidence
A conservatively levered balance sheet with roughly $673M in liquidity after the CEO's purchase provides a multi-quarter cash cushion, reducing immediate solvency risk. Insider buying signals management confidence and helps extend runway while the company executes cost reductions, lowering near‑term financing pressure.
Read all positive factors
C3ai Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Reveals profitability across different business areas, highlighting which segments drive the most earnings and where there might be opportunities or challenges.
Reveals profitability across different business areas, highlighting which segments drive the most earnings and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyC3ai (AI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend YieldN/A
Average Volume (3M)7.26M
Price to Earnings (P/E)―
Beta (1Y)2.04
Revenue Growth-35.67%
EPS Growth-49.96%
CountryUS
Employees891
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-3.35
Shares Outstanding151,949,280
10 Day Avg. Volume7,420,065
30 Day Avg. Volume7,256,472
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.90
Price to Sales (P/S)4.96
P/FCF Ratio-6.51
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue5.57
Enterprise Value/Gross Profit18.00
Enterprise Value/Ebitda-3.03
Forecast
1Y Price Target
$9.29Price Target Upside0.49% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)-0.79
Revenue Forecast (FY)$224.34M
C3ai Business Overview & Revenue Model
Company Description
C3.ai, Inc. is a leading provider of enterprise artificial intelligence (AI) software solutions, serving a global clientele across North America, Europe, the Middle East, Africa, and the Asia Pacific region. Its core offerings include the C3 AI Ap...
How the Company Makes Money
C3.ai primarily generates revenue by selling enterprise AI software under subscription-based arrangements, typically delivered as cloud (SaaS) or hosted deployments. The company’s revenue model centers on (1) subscription revenue for access to its...
C3ai Earnings Call Summary
Earnings Call Date:Jun 03, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 2026
Earnings Call Sentiment Neutral
The call balanced material operational progress against significant revenue and profitability challenges. Positives include a decisive restructuring that has already cut headcount ~35%, realized nearly $130M of planned annual cost savings, improved expense run rate, a solid cash position ($673M after CEO purchase), and a high subscription mix (94% of revenue). Negatives include weak quarterly revenue ($51.6M) after several quarters of poor sales execution, substantial non-GAAP operating and net losses, negative free cash flow, meaningful uncertainty around IPD conversion and future revenue mix, and guidance that still implies material annual losses. Management expressed conviction and a clear turnaround plan but acknowledged uncertainty on some execution details and timing.Positive Updates
Cost Reduction and Restructuring Delivered
Company completed a major restructuring, reducing headcount from ~1,070 to ~700 (≈35% reduction) and targeting approximately $135 million of annual operating cost savings; management reports nearly $130 million of the planned savings already realized and on track to meet or exceed the original target.
Negative Updates
Weak Revenue Level and Recent Revenue Decline
Total revenue for the quarter was $51.6M, a level management and analysts described as far below prior performance (management referenced FY25 revenue of ~$389M), with sales execution called out as the primary cause of the multi-quarter revenue collapse.
Read all updates
Q4-2026 Updates
Positive
Negative
Cost Reduction and Restructuring Delivered
Company completed a major restructuring, reducing headcount from ~1,070 to ~700 (≈35% reduction) and targeting approximately $135 million of annual operating cost savings; management reports nearly $130 million of the planned savings already realized and on track to meet or exceed the original target.
Read all positive updates
Company Guidance
C3 AI guided Q1 FY27 revenue of $50.0–$54.0 million and non‑GAAP loss from operations of $40.5–$48.5 million (the midpoint assumes non‑GAAP operating expenses of $96.5 million, $31.6 million lower than last year’s Q1 non‑GAAP operating expenses of $128.1 million), and full‑year FY27 revenue of $210–$240 million with non‑GAAP loss from operations of $128–$160 million. For context, Q4 FY26 reported revenue was $51.6 million (subscription $48.4M, 94% of revenue; professional services $3.2M, 6%), subscription+PES $50.5M (98%); non‑GAAP gross profit $19.3M (37% gross margin; services gross margin 78%); non‑GAAP operating loss $54.4M; non‑GAAP net loss $48.8M ($0.33/share); non‑GAAP operating expenses $106M (down $33.9M YoY from $139.9M); free cash flow –$54.8M; cash & marketable securities $575.4M at quarter end (subsequently $673M after the CEO’s $69M share purchase). Management also noted 9 IPDs signed in the quarter (417 cumulative, 251 active), headcount reduced from ~1,070 to ~700, and targeted annual cost savings of ~$135M (≈$130M realized to date).C3ai Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
27
Negative
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 250.27M | 389.06M | 310.58M | 266.80M | 252.76M |
| Gross Profit | 77.38M | 235.86M | 178.56M | 180.46M | 189.05M |
| EBITDA | -455.99M | -275.12M | -266.19M | -262.08M | -186.09M |
| Net Income | -470.37M | -288.70M | -279.70M | -268.84M | -192.06M |
Balance Sheet | |||||
| Total Assets | 816.27M | 1.03B | 1.04B | 1.10B | 1.17B |
| Cash, Cash Equivalents and Short-Term Investments | 575.45M | 742.69M | 750.37M | 730.98M | 960.16M |
| Total Debt | 0.00 | 4.79M | 3.23M | 2.34M | 3.61M |
| Total Liabilities | 162.52M | 187.58M | 164.87M | 173.36M | 181.41M |
| Stockholders Equity | 653.75M | 838.30M | 873.35M | 929.66M | 989.48M |
Cash Flow | |||||
| Free Cash Flow | -190.69M | -44.45M | -90.37M | -187.21M | -90.75M |
| Operating Cash Flow | -188.78M | -41.41M | -62.36M | -115.69M | -86.46M |
| Investing Cash Flow | 75.08M | 16.40M | -66.61M | 59.95M | 317.01M |
| Financing Cash Flow | 15.54M | 22.22M | 11.29M | 621.00K | 5.71M |
C3ai Technical Analysis
Negative
9.24
Price Trends
9.67
Negative
9.43
Negative
12.39
Negative
Market Momentum
-0.25
Positive
40.88
Neutral
31.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AI, the sentiment is Negative. The current price of 9.24 is below the 20-day moving average (MA) of 10.04, below the 50-day MA of 9.67, and below the 200-day MA of 12.39, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 31.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AI.
C3ai Risk Analysis
C3ai disclosed 61 risk factors in its most recent earnings report. C3ai reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
C3ai Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.93B | 8.82 | 22.44% | 1.41% | 6.47% | 10.82% | |
68 Neutral | $4.61B | 12.61 | 10.67% | ― | 14.21% | -2.92% | |
67 Neutral | $1.40B | 13.08 | 5.14% | ― | -0.20% | -28.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $1.44B | -1.11 | -37.51% | 3.38% | 3.89% | -681.89% | |
50 Neutral | $1.41B | -2.70 | -63.91% | ― | -35.67% | -49.96% | |
50 Neutral | $1.69B | -4.22 | -50.67% | ― | -20.34% | -8.67% |
* Technology Sector Average
AI
C3ai
9.06
-16.59
-64.68%
EPAM
Epam Systems
88.27
-91.70
-50.95%
G
Genpact
29.10
-16.12
-35.65%
GLOB
Globant SA
32.51
-58.39
-64.24%
CNXC
Concentrix
23.60
-31.08
-56.84%
BBAI
BigBearai Holdings
3.53
-4.25
-54.63%
C3ai Corporate Events
Business Operations and StrategyExecutive/Board Changes
C3.ai Director Jim Snabe Takes Leave Amid EU Role
Neutral
Jun 16, 2026
On June 11, 2026, C3.ai director Jim H. Snabe took an immediate leave of absence from the company’s Board of Directors and from his role as special advisor to the chief executive officer, following his appointment as Special Envoy to the Eur...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
C3 AI Founder Returns as CEO Amid Leadership Reshuffle
Positive
May 12, 2026
C3 AI announced that founder Thomas M. Siebel, 73, resumed the role of chief executive officer and continued as chairman of the board effective May 8, 2026, while former CEO Stephen Ehikian transitioned to the role of president, in a leadership re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.