C3ai (AI) AI Stock Analysis

• Market Cap: $2.22B
• Dividend Yield: N/A
• Average Volume (3M): 6.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: 14.34%
• EPS Growth: -13.27%
• Country: US
• Employees: 891
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.37
• Shares Outstanding: 134,349,700
• 10 Day Avg. Volume: 4,981,741
• 30 Day Avg. Volume: 6,931,449
• PEG Ratio: 2.30
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 7.30
• P/FCF Ratio: -63.93
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 6.67
• Enterprise Value/Gross Profit: 11.81
• Enterprise Value/Ebitda: -6.92
• 1Y Price Target: $15.55
• Price Target Upside: 0.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $17.50 ▲(12.76% Upside)

C3.ai faces significant challenges, with ongoing profitability issues and bearish technical indicators. The company's valuation is unattractive due to negative earnings, and the recent earnings call highlighted operational difficulties and uncertainty. Despite a strong balance sheet and strategic partnerships, these factors weigh heavily on the overall stock score.

Positive Factors

Strategic Partnerships

Strategic partnerships with major firms like Nucor enhance C3.ai's market reach and credibility, potentially driving long-term revenue growth through collaborative projects and expanded customer bases.

Strong Cash Position

A strong cash position provides C3.ai with financial stability and flexibility to invest in growth opportunities, manage operational challenges, and weather economic uncertainties.

New Leadership

New leadership and organizational restructuring can drive growth and improve customer satisfaction, potentially enhancing operational efficiency and strategic execution in the long term.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in market demand or competitive positioning, which could impact C3.ai's ability to sustain growth and profitability over time.

Profitability Challenges

Ongoing operating and net losses highlight profitability challenges, which may strain financial resources and limit C3.ai's ability to invest in growth initiatives or withstand economic pressures.

Negative Free Cash Flow

Negative free cash flow suggests liquidity issues, which could hinder C3.ai's capacity to fund operations and growth projects, potentially affecting long-term financial health and stability.

C3ai Business Overview & Revenue Model

Company Description

C3.ai is a leading artificial intelligence software provider that specializes in delivering enterprise AI applications for various industries, including energy, manufacturing, financial services, and healthcare. The company's core offerings include AI software solutions that enhance operational efficiencies, improve decision-making processes, and drive innovation through advanced data analytics and machine learning capabilities. C3.ai's platform enables organizations to design, develop, and deploy AI applications at scale, leveraging vast amounts of data to create actionable insights.

How the Company Makes Money

C3.ai generates revenue primarily through a subscription-based model, where customers pay for access to its AI software and services. The company offers various pricing tiers based on the scale and complexity of the solutions provided, allowing organizations to tailor their AI applications to specific business needs. Key revenue streams include licensing fees, consulting services, and support contracts. Additionally, C3.ai has formed strategic partnerships with major technology companies, such as Microsoft, which enhance its market reach and bolster revenue through collaborative projects and integrated solutions. These partnerships also facilitate access to new customer bases and joint marketing efforts, further contributing to the company's earnings.

C3ai Financial Statement Overview

Summary

C3ai is experiencing moderate revenue growth and maintains a strong balance sheet with low leverage. However, the company faces significant profitability challenges, with negative margins and cash flow issues. While there are signs of improvement in free cash flow, the overall financial health is hindered by persistent losses and negative returns on equity.

Income Statement

C3ai has shown a moderate revenue growth rate of 6.03% in the latest year, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by negative net profit margins (-74.21%) and EBIT margins (-83.39%). The gross profit margin is relatively healthy at 60.62%, but the persistent losses suggest challenges in managing operating expenses.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.07, indicating conservative leverage and a strong equity position. However, the return on equity is negative (-34.44%), reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio stands at a solid level, suggesting financial stability despite profitability issues.

Cash Flow

C3ai's free cash flow has improved by 23.57%, but the company still faces negative operating cash flow, which is a concern for liquidity. The free cash flow to net income ratio is positive at 1.07, indicating that the company is generating cash relative to its net losses, but the operating cash flow coverage ratio remains negative, highlighting ongoing cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	372.10M	389.06M	310.58M	266.80M	252.76M	183.22M
Gross Profit	210.14M	235.86M	178.56M	180.46M	189.05M	138.70M
EBITDA	-358.82M	-311.82M	-306.92M	-284.40M	-190.93M	-55.96M
Net Income	-342.64M	-288.70M	-279.70M	-268.84M	-192.06M	-55.70M
Balance Sheet
Total Assets	968.74M	1.03B	1.04B	1.10B	1.17B	1.20B
Cash, Cash Equivalents and Short-Term Investments	711.90M	742.69M	750.37M	730.98M	960.16M	1.09B
Total Debt	0.00	60.29M	3.23M	2.34M	3.61M	5.63M
Total Liabilities	169.91M	187.58M	164.87M	173.36M	181.41M	135.30M
Stockholders Equity	798.82M	838.30M	873.35M	929.66M	989.48M	1.06B
Cash Flow
Free Cash Flow	-85.86M	-44.45M	-90.37M	-187.21M	-90.75M	-39.18M
Operating Cash Flow	-82.98M	-41.41M	-62.36M	-115.69M	-86.46M	-37.55M
Investing Cash Flow	6.78M	16.40M	-66.61M	59.95M	317.01M	-767.15M
Financing Cash Flow	23.33M	22.22M	11.29M	621.00K	5.71M	887.36M

C3ai Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 15.52 is below the 20-day moving average (MA) of 17.59, below the 50-day MA of 17.50, and below the 200-day MA of 22.45, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 36.70 is Neutral, neither overbought nor oversold. The STOCH value of 12.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AI.

C3ai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACN	80 Outperform	$153.68B	20.39	25.82%	2.47%	7.36%	6.18%
CTSH	80 Outperform	$36.03B	17.31	14.50%	1.72%	7.44%	-4.57%
G	78 Outperform	$6.77B	12.88	22.32%	1.49%	7.39%	-14.45%
EPAM	74 Outperform	$8.83B	22.94	10.21%	―	14.26%	-15.49%
INFY	74 Outperform	$68.80B	20.81	29.15%	3.15%	4.62%	1.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AI	45 Neutral	$2.22B	―	-40.94%	―	14.34%	-13.27%

C3ai Corporate Events

C3.ai Confirms Director Elections at Annual Meeting

On October 3, 2025, C3.ai, Inc. held its Annual Meeting of Stockholders virtually, where stockholders voted on three key proposals. The election of Class II directors was confirmed, the compensation of named executive officers was approved on an advisory basis, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending April 30, 2026.

The most recent analyst rating on (AI) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on C3ai stock, see the AI Stock Forecast page.

C3.ai Approves 2025 Inducement Plan for Talent Acquisition

On September 14, 2025, C3.ai’s Board of Directors approved the 2025 Inducement Plan, allowing for equity-based awards to be granted without stockholder approval. This plan aims to attract new talent by offering stock options and other awards, potentially enhancing the company’s competitive positioning in the AI industry.

The most recent analyst rating on (AI) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on C3ai stock, see the AI Stock Forecast page.

Leadership Transition at C3.Ai: Potential Risks and Challenges Ahead

The transition of leadership at C3.Ai, Inc., with Stephen Ehikian succeeding Thomas M. Siebel as CEO, presents a significant risk to the company’s strategic execution. As Mr. Siebel has been pivotal in shaping the company’s management, sales strategy, and technological development, his shift to Executive Chairman could disrupt operations. The success of Mr. Ehikian, despite his credentials, remains uncertain, and any instability in senior management could hinder the company’s growth. Additionally, the lack of key person life insurance for executives adds to the vulnerability, potentially impacting business continuity.

C3 AI Appoints Stephen Ehikian as New CEO

C3 AI announced the appointment of Stephen Ehikian as its new Chief Executive Officer, effective September 1, 2025. Ehikian, a seasoned technology leader with a history of building and scaling AI companies, is expected to drive C3 AI’s growth and market penetration in the enterprise AI sector. His appointment is seen as a strategic move to enhance the company’s leadership in AI applications for commercial and government markets, with Thomas M. Siebel continuing as Executive Chairman.

The most recent analyst rating on (AI) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on C3ai stock, see the AI Stock Forecast page.

C3.ai Earnings Call Highlights Challenges and Strategic Shifts

The recent earnings call for C3.ai, Inc. painted a challenging picture, with the company grappling with a notable decline in revenue and ongoing losses. Despite these hurdles, the call also highlighted positive aspects such as strong customer partnerships and a robust cash position, though these were somewhat overshadowed by the pressing issues at hand.

C3.ai Reports Q1 2026 Results Amid Leadership Changes

C3.ai, Inc. is a leading enterprise AI application software company that provides a comprehensive suite of AI solutions to enhance digital transformation across various industries. The company recently announced its fiscal first quarter 2026 financial results, highlighting a significant restructuring in leadership and sales organization aimed at driving future growth.