C3ai (AI) AI Stock Analysis

• Market Cap: $3.36B
• Dividend Yield: N/A
• Average Volume (3M): 6.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• Revenue Growth: 25.27%
• EPS Growth: 4.68%
• Country: US
• Employees: 891
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): -0.16
• Shares Outstanding: 129,238,720
• 10 Day Avg. Volume: 12,341,497
• 30 Day Avg. Volume: 6,453,629
• PEG Ratio: 11.94
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -83.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.45
• Price Target Upside: 17.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 60 Neutral
• Price Target: $29.00 ▲(11.75%Upside)

C3ai's overall score is primarily influenced by its strong revenue growth and strategic partnerships, which are positive but are offset by substantial challenges in profitability and cash flow. While technical indicators are favorable, valuation concerns and potential operational risks due to external factors also weigh on the score.

Positive Factors

Deal Growth

Deals closed through the partner network increased by 68% year-over-year in FY25 to 193.

Revenue Performance

Total revenue growth sustained at 26% year over year, exceeding consensus expectations.

Strategic Partnerships

The joint venture with Baker Hughes was renewed and extended until June of 2028, removing a potential risk.

Negative Factors

Growth Momentum

The number of Initial Production Deployments decreased from 50 in Q3 to 36 in Q4, raising concerns about growth momentum.

Revenue Guidance

The company's initial FY26 revenue guidance came in below prior estimates, suggesting limited AI tailwinds.

Subscription Revenue

C3.ai’s subscription revenue missed estimates by 12%, indicating weaker demand than anticipated.

C3ai Business Overview & Revenue Model

Company Description

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It provides C3 AI application platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina to for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 AI Data Vision that visualizes, understands, and leverages the relationships between data entities. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which provides visibility into risks of disruption throughout the supply chain operations; C3 AI Customer Churn Management, which enables account executives and relationship managers to monitor customer satisfaction, as well as to prevent customer churn with AI-based and human-interpretable predictions and warning; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Predictive Maintenance, which provides insight into asset risk to maintenance planners and equipment operators; C3 AI Fraud Detection solution that identify revenue leakage or maintenance and safety issues; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market segments. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; FIS in the areas of financial services market; Raytheon; and AWS, Intel, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.

How the Company Makes Money

C3.ai generates revenue primarily through the sale of subscriptions to its C3 AI Suite. The company's business model is based on a subscription-based pricing approach where clients pay recurring fees to access its software platform and applications. Revenue streams include licensing its software to large enterprises and government agencies, providing professional services for implementation, and offering ongoing support and maintenance. Additionally, strategic partnerships with technology companies, such as Microsoft and AWS, expand C3.ai's market reach and enhance its product offerings, contributing to its revenue growth.

C3ai Financial Statement Overview

Summary

C3ai is experiencing strong revenue growth but faces challenges in achieving profitability and positive cash flow. The balance sheet is solid with no debt, but operational inefficiencies and cash flow issues persist. The company must address these challenges to improve its financial health and sustain growth.

Income Statement

C3ai has shown consistent revenue growth with a TTM revenue of $366.9M, representing a healthy increase from previous years. However, the company struggles with profitability, evident from a negative net profit margin and EBIT margin. The gross profit margin remains strong at approximately 60%, but operating losses due to high expenses are a concern.

Balance Sheet

The balance sheet of C3ai is relatively strong, with substantial stockholders' equity of $860.2M and no total debt as of the latest TTM. The equity ratio is robust, indicating a stable financial structure. However, the negative net income impacts the return on equity, which remains negative, underlining operational inefficiencies.

Cash Flow

C3ai's cash flow position is concerning, with negative free cash flow and operating cash flow over the recent periods. Although there is a slight improvement in free cash flow when comparing the latest TTM to the previous year, the company still spends more cash than it generates from operations, posing liquidity risks.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
366.92M	310.58M	266.80M	252.76M	183.22M	156.67M
	Gross Profit
219.96M	178.56M	180.46M	189.05M	138.70M	117.88M
	EBIT
-317.77M	-318.34M	-290.49M	-196.12M	-60.26M	-71.50M
	EBITDA
-305.30M	-306.92M	-285.50M	-190.93M	-55.96M	-70.19M
	Net Income Common Stockholders
-281.93M	-279.70M	-268.84M	-192.06M	-55.70M	-69.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
723.32M	750.37M	730.98M	960.16M	1.09B	244.98M
	Total Assets
1.06B	1.04B	1.10B	1.17B	1.20B	305.11M
	Total Debt
2.94M	3.23M	2.34M	3.61M	5.63M	5.65M
	Net Debt
-111.63M	-163.92M	-282.49M	-335.92M	-109.73M	-27.46M
	Total Liabilities
165.99M	164.87M	173.36M	181.41M	135.30M	487.81M
	Stockholders Equity
898.00M	873.35M	929.66M	989.48M	1.06B	-182.70M
Cash Flow		Free Cash Flow
-35.97M	-90.37M	-187.21M	-90.75M	-39.18M	-64.16M
	Operating Cash Flow
-31.33M	-62.36M	-115.69M	-86.46M	-37.55M	-61.28M
	Investing Cash Flow
19.44M	-66.61M	59.95M	317.01M	-767.15M	-124.07M
	Financing Cash Flow
22.42M	11.29M	621.00K	5.71M	887.36M	119.85M

C3ai Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AI, the sentiment is Positive. The current price of 25.95 is above the 20-day moving average (MA) of 24.31, above the 50-day MA of 22.35, and below the 200-day MA of 27.08, indicating a neutral trend. The MACD of 0.96 indicates Negative momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 44.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AI.

C3ai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	80 Outperform	$75.27B	23.50	29.00%	2.37%	3.85%	-0.38%
ACN	80 Outperform	$197.44B	26.02	27.26%	1.80%	4.10%	9.78%
EPAM	78 Outperform	$9.89B	24.92	11.57%	―	4.72%	-3.06%
G	76 Outperform	$7.36B	14.33	22.21%	1.45%	7.31%	-15.86%
CTSH	76 Outperform	$39.57B	16.90	16.61%	1.52%	4.09%	14.05%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
AI	60 Neutral	$3.36B	―	-33.73%	―	25.27%	4.68%

C3ai Corporate Events

Kenneth Goldman Joins C3 AI Board of Directors

On May 21, 2025, Kenneth A. Goldman was elected to the board of directors of C3 AI, a company specializing in enterprise AI application software. Goldman, who brings over four decades of experience in financial leadership and corporate strategy, will serve as a Class I director and a member of the Audit Committee. His election is expected to enhance C3 AI’s financial operations and governance as the company continues to scale its impact in the enterprise software landscape.

The most recent analyst rating on (AI) stock is a Sell with a $28.00 price target. To see the full list of analyst forecasts on C3ai stock, see the AI Stock Forecast page.