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C3ai (AI)
NYSE:AI

C3ai (AI) AI Stock Analysis

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AI

C3ai

(NYSE:AI)

Rating:60Neutral
Price Target:
$29.00
▲(18.03%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.
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 (AI) vs. SPDR S&P 500 ETF (SPY)

C3ai Business Overview & Revenue Model

Company DescriptionC3.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 MoneyC3.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 Key Performance Indicators (KPIs)

Any
Any
Gross Margin by Segment
Gross Margin by Segment
Shows the percentage of revenue that exceeds the cost of goods sold for each segment, indicating pricing power and cost efficiency within the company's various operations.
Chart InsightsC3.ai's gross margin for Subscription services has stabilized after a significant decline from 2021 to early 2023, now showing modest recovery. Professional Services margins have remained robust, peaking in 2024. The earnings call highlights a 26% revenue growth and strong partnerships, particularly with Baker Hughes, which may support future margin improvements. However, the company faces challenges with operating losses and broader revenue guidance due to external risks. Investors should watch for how these strategic partnerships and economic factors influence margins moving forward.
Data provided by:Main Street Data

C3ai Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q4-2025)
|
% Change Since: -11.62%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth and strategic advancements in various sectors, alongside strong partnerships and a solid financial standing. However, there are concerns about operating losses and broader revenue guidance due to external risks.
Q4-2025 Updates
Positive Updates
Spectacular Growth in Fiscal Year 2025
C3.ai achieved 26% top-line growth in Q4 and 25% total revenue growth for the fiscal year, demonstrating a significant increase from previous years.
Renewal and Expansion of Baker Hughes Partnership
The strategic partnership with Baker Hughes was renewed through 2028, generating over half a billion dollars in revenue and expanding C3.ai's reach in the oil and gas sector.
Strong Growth in Non-Oil and Gas Verticals
Non-oil and gas revenue grew by 48% year-over-year, with significant traction in manufacturing, state and local government, and life sciences.
Expansion of Partner Ecosystem
A 68% increase in partner-supported agreements was recorded, with notable collaborations with Microsoft, AWS, Google Cloud, and McKinsey Quantum Black.
Positive Cash Flow and Strong Financial Position
C3.ai generated $10.3 million in free cash flow in Q4 and maintained approximately $742.7 million in cash and investments.
Negative Updates
Non-GAAP Operating Loss
The company reported a non-GAAP operating loss of $31.2 million for Q4, although it was within the projected guidance range.
Broader Revenue Guidance Range for FY 2026
The revenue guidance for FY 2026 has a broader range than usual, acknowledging risks such as geopolitical instability and potential government shutdowns.
Company Guidance
During the C3.ai, Inc.'s fourth quarter fiscal year 2025 earnings call, the company announced a 26% year-over-year revenue increase, reaching $108.7 million for the quarter. Subscription revenue rose by 9% to $87.3 million, contributing to a total fiscal year 2025 revenue of $389.1 million, marking a 25% increase from the previous year. The company maintained a gross margin of approximately 69%, with a non-GAAP operating loss of $31.2 million, aligning with the guidance range. The call highlighted the renewal of a key strategic partnership with Baker Hughes, which has generated over half a billion dollars in revenue from the oil and gas sector. Additionally, C3.ai, Inc. emphasized the significant expansion of its partner ecosystem, with 73% of agreements in fiscal 2025 being partner-supported, resulting in a 68% increase in agreements closed through this network. The company also reported free cash flow of $10.3 million for the quarter, maintaining a stable cash balance of $742.7 million. Looking forward, C3.ai, Inc. provided fiscal 2026 revenue guidance of $447.5 million to $484.5 million, acknowledging broader geopolitical and economic risks that could impact future performance.

C3ai Financial Statement Overview

Summary
C3ai exhibits strong revenue growth and a solid balance sheet with no debt, which are positive indicators. However, the company faces significant challenges with profitability and cash flow, with negative net profit margins and free cash flow. These operational inefficiencies and liquidity risks weigh heavily on the financial performance score.
Income Statement
55
Neutral
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
65
Positive
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
50
Neutral
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.
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue366.92M389.06M310.58M266.80M252.76M183.22M
Gross Profit219.96M235.86M178.56M180.46M189.05M138.70M
EBITDA-305.30M-324.42M-306.92M-284.40M-190.93M-55.96M
Net Income-281.93M-288.70M-279.70M-268.84M-192.06M-55.70M
Balance Sheet
Total Assets1.06B1.03B1.04B1.10B1.17B1.20B
Cash, Cash Equivalents and Short-Term Investments724.33M742.69M750.37M730.98M960.16M1.09B
Total Debt4.49M0.003.23M2.34M3.61M5.63M
Total Liabilities194.96M187.58M164.87M173.36M181.41M135.30M
Stockholders Equity860.18M838.30M873.35M929.66M989.48M1.06B
Cash Flow
Free Cash Flow-35.97M-44.45M-90.37M-187.21M-90.75M-39.18M
Operating Cash Flow-31.33M-41.41M-62.36M-115.69M-86.46M-37.55M
Investing Cash Flow19.44M16.40M-66.61M59.95M317.01M-767.15M
Financing Cash Flow22.42M22.22M11.29M621.00K5.71M887.36M

C3ai Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.57
Price Trends
50DMA
23.52
Positive
100DMA
23.95
Positive
200DMA
27.17
Negative
Market Momentum
MACD
0.09
Positive
RSI
52.23
Neutral
STOCH
72.49
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 24.57 is below the 20-day moving average (MA) of 24.67, above the 50-day MA of 23.52, and below the 200-day MA of 27.17, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 72.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$78.03B24.2829.00%2.78%3.85%-0.38%
ACACN
77
Outperform
$201.01B23.5227.27%2.00%6.21%14.87%
GG
75
Outperform
$7.61B14.8222.21%1.56%7.31%-15.86%
71
Outperform
$38.32B16.3716.61%1.59%4.09%14.05%
71
Outperform
$9.91B24.7211.57%4.72%-3.06%
AIAI
60
Neutral
$3.26B-33.73%25.27%4.68%
49
Neutral
C$2.90B2.02-80.91%2.95%6.62%-18.96%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AI
C3ai
24.57
-3.52
-12.53%
ACN
Accenture
298.89
0.37
0.12%
CTSH
Cognizant
78.03
10.45
15.46%
EPAM
Epam Systems
176.82
-6.46
-3.52%
G
Genpact
44.01
12.67
40.43%
INFY
Infosys
18.53
-0.29
-1.54%

C3ai Corporate Events

Executive/Board Changes
Kenneth Goldman Joins C3 AI Board of Directors
Positive
May 27, 2025

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.

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.Date of analysis: May 30, 2025