C3ai (AI) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: N/A
• Average Volume (3M): 6.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• Revenue Growth: 1.84%
• EPS Growth: -27.74%
• Country: US
• Employees: 891
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.40
• Shares Outstanding: 137,253,300
• 10 Day Avg. Volume: 5,089,517
• 30 Day Avg. Volume: 6,578,609
• 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: 0.92
• Enterprise Value/Revenue: 3.72
• Enterprise Value/Gross Profit: 7.18
• Enterprise Value/Ebitda: -3.39
• 1Y Price Target: $14.50
• Price Target Upside: 43.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $10.00 ▼(-1.19% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held down primarily by deteriorating profitability and sustained cash burn, reinforced by bearish technical trends. A strong, low-debt balance sheet and encouraging bookings/partner momentum from the earnings call provide some support, but valuation remains challenging while losses persist.

Positive Factors

Strong Balance Sheet

Very low leverage and substantial equity provide a durable liquidity cushion and financial flexibility. This balance sheet gives the company runway to fund product development, partner integrations and restructuring without immediate refinancing, reducing near-term solvency risk.

Partner & Federal Bookings Momentum

Rapid partner-driven pipeline expansion and outsized federal bookings diversify go-to-market channels and create sticky, large-contractor opportunities. Partner-led deals and federal adoption increase scale potential and lower direct sales costs, supporting durable revenue expansion if execution holds.

High Recurring Revenue Mix

A subscription-dominant revenue mix increases predictability and customer lifetime value, enabling multi-year contract visibility. Recurring SaaS receipts support long-term upsell, maintenance revenue and smoother capacity planning versus one-off sales, strengthening revenue durability over months.

Negative Factors

Sustained Negative Cash Flow

Persistent operating and free cash flow deficits indicate the business has not achieved operating leverage and continues to consume capital. Over the medium term this pressures runway and forces reliance on balance sheet or external financing, constraining strategic investments.

Large Operating & Net Losses

Operating losses larger than revenue reveal deep structural profitability issues: gross margin is positive but costs far exceed contribution, eroding equity and undermining returns. Without sustained margin recovery, reinvestment and shareholder value creation remain impaired.

Restructuring Reflects Demand/Execution Risk

A large workforce reduction and lowered guidance signal demand softness or prior execution missteps. While cuts can improve cash flow, they also risk reduced sales capacity and slower product delivery, making revenue stabilization and growth recovery more uncertain over the next several quarters.

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 a subscription-based model, where customers pay for access to its AI software and services. This includes licensing fees for the C3 AI Suite and associated applications, which can be tailored to specific organizational needs. Additionally, the company earns revenue from professional services, including implementation, customization, and support for its software solutions. Strategic partnerships with major firms and technology providers enhance its market reach and credibility, contributing to its earnings. C3.ai also benefits from long-term contracts with clients, ensuring a steady revenue stream as they continue to integrate AI into their operations.

C3ai Financial Statement Overview

Summary

Operating performance is very weak with TTM revenue down 5.2%, extremely large operating losses (EBIT margin about -112.6%) and net losses larger than revenue (net margin about -108.1%), plus negative operating and free cash flow (about -$90.8M and -$93.2M). The key offset is a strong, low-leverage balance sheet (minimal debt and substantial equity), which provides financial flexibility despite poor returns (ROE about -46.7%).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (down 5.2%), and profitability remains very weak: gross margin is still solid (~51.8%) but operating losses are extreme (EBIT margin about -112.6%) and net losses are larger than revenue (net margin about -108.1%). Annual results show revenue growth in prior years, but losses have persisted and in TTM have widened versus FY2025, pointing to deteriorating operating leverage despite a still-attractive gross profit profile.

Balance Sheet

The balance sheet is a clear strength: debt is effectively minimal to none (TTM total debt at 0; very low in prior annual periods), resulting in negligible leverage (debt-to-equity near 0). Equity remains substantial (TTM ~$771.9M) versus assets (~$961.3M), providing cushion and flexibility. The key weakness is poor returns on shareholders’ capital driven by large losses (TTM return on equity about -46.7%), and equity has trended lower versus prior years as losses accumulate.

Cash Flow

Cash generation remains a major concern: TTM operating cash flow is negative (~-$90.8M) and free cash flow is also negative (~-$93.2M), indicating the business is still consuming cash. There is some relative improvement (TTM free cash flow growth is positive), and free cash flow loss is roughly in line with the net loss, but the company has not demonstrated sustained positive operating cash flow across the historical periods provided.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	352.91M	389.06M	310.58M	266.80M	252.76M	183.22M
Gross Profit	182.68M	235.86M	178.56M	180.46M	189.05M	138.70M
EBITDA	-387.52M	-311.82M	-306.92M	-284.40M	-190.93M	-55.96M
Net Income	-381.34M	-288.70M	-279.70M	-268.84M	-192.06M	-55.70M
Balance Sheet
Total Assets	961.30M	1.03B	1.04B	1.10B	1.17B	1.20B
Cash, Cash Equivalents and Short-Term Investments	675.03M	742.69M	750.37M	730.98M	960.16M	1.09B
Total Debt	0.00	4.79M	3.23M	2.34M	3.61M	3.89M
Total Liabilities	189.41M	187.58M	164.87M	173.36M	181.41M	135.30M
Stockholders Equity	771.88M	838.30M	873.35M	929.66M	989.48M	1.06B
Cash Flow
Free Cash Flow	-93.23M	-44.45M	-90.37M	-187.21M	-90.75M	-39.18M
Operating Cash Flow	-90.79M	-41.41M	-62.36M	-115.69M	-86.46M	-37.55M
Investing Cash Flow	46.23M	16.40M	-66.61M	59.95M	317.01M	-767.15M
Financing Cash Flow	27.56M	22.22M	11.29M	621.00K	5.71M	887.36M

C3ai Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.12
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 10.12 is below the 20-day moving average (MA) of 10.92, below the 50-day MA of 12.62, and below the 200-day MA of 18.28, indicating a bearish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 39.82 is Neutral, neither overbought nor oversold. The STOCH value of 30.19 is Neutral, 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
G	73 Outperform	$6.54B	12.12	22.37%	1.41%	7.40%	-14.45%
EPAM	68 Neutral	$7.12B	19.47	10.34%	―	14.26%	-15.49%
GLOB	67 Neutral	$1.86B	19.69	4.91%	―	5.56%	-42.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNXC	49 Neutral	$1.87B	-1.51	-37.82%	3.38%	3.40%	53.13%
AI	46 Neutral	$1.42B	-3.64	-46.77%	―	1.84%	-27.74%
BBAI	46 Neutral	$1.70B	-2.77	-111.83%	―	-6.95%	-53.69%

C3ai Corporate Events

C3 AI Announces Major Restructuring to Cut Operating Costs

On February 24, 2026, C3 AI’s board approved a restructuring plan aimed at materially improving operating efficiency, including a 26% global workforce reduction that is largely complete and a roughly 30% cut in annualized non-employee costs targeted by the second half of fiscal 2027. The company expects to incur $10 million to $12 million in pre-tax restructuring charges in the fiscal 2026 fourth quarter and projects about $135 million in annual non-GAAP operating expense savings, though management cautioned that actual charges and timing could vary.

For its fiscal third quarter ended January 31, 2026, C3 AI reported $53.3 million in revenue, with subscriptions contributing 90% of the total, a 17% GAAP gross margin, and a GAAP net loss of $0.94 per share, supported by $621.9 million in cash and marketable securities. The company highlighted strong momentum in federal, defense, and aerospace bookings, new and expanded agreements with major government and commercial customers, and initial production deployments of its generative AI offerings, while guiding to lower fourth-quarter revenue of $48 million to $52 million and a continued non-GAAP operating loss for fiscal 2026.

The most recent analyst rating on (AI) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on C3ai stock, see the AI Stock Forecast page.