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C3ai
(NYSE:AI)
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Rating:45Neutral
Price Target:
$8.50
▲(4.29% Upside)
Action:Reiterated
Date:07/18/26
The score is held down primarily by weak financial performance (revenue decline, margin compression, large losses, and continued cash burn) and bearish technicals (below key moving averages with negative MACD). Offsetting factors include a strong, low-debt liquidity position and management’s cost-reduction progress and guidance discipline, but the business still guides to sizable losses and faces execution risk on restoring subscription economics and converting IPDs.
Positive Factors
High recurring revenue mix
A 94% subscription mix signals durable recurring revenue and customer retention potential, improving revenue predictability and lifetime value. Over months, a subscription-heavy model supports steady ARR recovery if sales execution and renewals normalize.
Negative Factors
Revenue decline and margin compression
A sharp revenue drop coupled with gross margin collapse erodes unit economics and long-term profitability. If sustained, this undermines the core SaaS operating model's leverage and makes consistent path to positive operating cash flow and scaling margins difficult over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue mix
A 94% subscription mix signals durable recurring revenue and customer retention potential, improving revenue predictability and lifetime value. Over months, a subscription-heavy model supports steady ARR recovery if sales execution and renewals normalize.
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
$1.43B
Dividend YieldN/A
Average Volume (3M)5.51M
Price to Earnings (P/E)―
Beta (1Y)2.06
Revenue Growth-35.67%
EPS Growth-49.96%
CountryUS
Employees764
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-3.35
Shares Outstanding151,949,280
10 Day Avg. Volume5,172,457
30 Day Avg. Volume5,507,449
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$9.29Price Target Upside13.94% 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 | 5.58M | 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
Neutral
8.15
Price Trends
9.58
Negative
9.21
Negative
11.45
Negative
Market Momentum
-0.16
Negative
53.30
Neutral
79.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AI, the sentiment is Neutral. The current price of 8.15 is below the 20-day moving average (MA) of 8.84, below the 50-day MA of 9.58, and below the 200-day MA of 11.45, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 79.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AI.
C3ai Risk Analysis
C3ai disclosed 63 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 | $5.96B | 10.66 | 22.44% | 2.29% | 6.47% | 10.82% | |
69 Neutral | $5.51B | 15.08 | 10.67% | ― | 14.21% | -2.92% | |
67 Neutral | $1.58B | 14.72 | 5.14% | ― | -0.20% | -28.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $1.50B | -1.15 | -41.80% | 6.47% | 3.89% | -681.89% | |
45 Neutral | $1.43B | -2.74 | -63.91% | ― | -35.67% | -49.96% | |
45 Neutral | $1.34B | -15.71 | -50.67% | ― | -13.72% | 87.44% |
* Technology Sector Average
AI
C3ai
9.73
-13.46
-58.04%
EPAM
Epam Systems
107.26
-46.04
-30.03%
G
Genpact
35.16
-6.62
-15.84%
GLOB
Globant SA
37.14
-44.89
-54.72%
CNXC
Concentrix
24.95
-18.93
-43.14%
BBAI
BigBearai Holdings
2.86
-4.23
-59.66%
C3ai Corporate Events
Business Operations and StrategyLegal Proceedings
C3.ai Securities Class Action Dismissed, Reducing Legal Risk
Positive
Jul 17, 2026
On August 22, 2025, a putative securities class action complaint titled John Liggett, Sr., et al. v. C3 AI, Inc., et al., No. 3:25-cv-07129-TLT, was filed in the U.S. District Court for the Northern District of California against C3.ai, Inc. and c...
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.