C3.Ai, Inc. (AI)
NYSE:AI
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C3ai
(NYSE:AI)
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Rating:51Neutral
Price Target:
$9.50
▲(2.81% Upside)
Action:Reiterated
Date:05/12/26
The score is primarily held down by deteriorating TTM operating performance (revenue contraction, sharp margin compression, very large losses) and continued cash burn. Technicals are modestly supportive in the near term (above 20/50-day averages with positive MACD), but valuation is not supported due to negative earnings and no dividend. Earnings-call commentary is mixed: strong bookings and a defined cost-reduction plan help, but guidance indicates large losses persist with meaningful improvement pushed out to H2 FY27.
Positive Factors
High recurring revenue mix
A 90% subscription mix (97% when including prioritized services) creates predictable, contractually recurring revenue that supports retention, smoother cash flows and long-term customer relationships. This recurring base underpins operating leverage once sales execution improves, making profitability gains more sustainable.
Negative Factors
Revenue decline and margin compression
A sizable top-line contraction coupled with a sharp gross margin drop materially weakens operating leverage and profitability prospects. Margin erosion suggests either pricing pressure or higher cost of delivery; without sustained revenue growth, margin recovery will be harder and cost cuts alone may not restore durable profits.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue mix
A 90% subscription mix (97% when including prioritized services) creates predictable, contractually recurring revenue that supports retention, smoother cash flows and long-term customer relationships. This recurring base underpins operating leverage once sales execution improves, making profitability gains more sustainable.
Read all positive factors
C3ai Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyC3ai (AI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.35B
Dividend YieldN/A
Average Volume (3M)4.63M
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth-16.22%
EPS Growth-41.59%
CountryUS
Employees891
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-3.16
Shares Outstanding141,791,230
10 Day Avg. Volume4,746,364
30 Day Avg. Volume4,627,255
Financial Highlights & Ratios
PEG Ratio2.30
Price to Book (P/B)3.39
Price to Sales (P/S)7.30
P/FCF Ratio-63.93
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue4.00
Enterprise Value/Gross Profit9.20
Enterprise Value/Ebitda-2.82
Forecast
1Y Price Target
$8.25Price Target Upside-10.71% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)-0.84
Revenue Forecast (FY)$224.70M
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 ru...
How the Company Makes Money
C3.ai primarily makes money by selling enterprise software and related services to organizations adopting its AI platform and applications. Revenue is generated mainly through software subscriptions (and in some cases usage-based arrangements) for...
C3ai Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but pragmatic picture: results for the quarter were disappointing with sizeable operating losses, negative free cash flow, and significant workforce reductions. At the same time, the company demonstrated strong sector-specific bookings (federal/defense), important customer wins, a high-recurring revenue mix, a healthy cash balance, and a defined $135M cost-reduction plan designed to materially reduce burn and return the company to non-GAAP profitability over time. Management’s acknowledgment of sales execution issues, concrete restructuring actions and focus on high-value use cases provide a clear recovery path, but substantive financial improvement is expected only later (H2 FY27), leaving near-term risk and uncertainty.Positive Updates
Strong Federal, Defense & Aerospace Traction
Bookings across federal, defense and aerospace increased 134% year-over-year and accounted for 55% of total bookings, signaling strong momentum and demand in government and allied defense markets.
Negative Updates
Quarter Results Below Expectations and Sales Execution Problems
Management stated results were 'clearly inadequate' and cited failure to close business as planned. Performance in North America and Europe was described as disappointing, and the CEO attributed the shortfall to weak sales execution.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Federal, Defense & Aerospace Traction
Bookings across federal, defense and aerospace increased 134% year-over-year and accounted for 55% of total bookings, signaling strong momentum and demand in government and allied defense markets.
Read all positive updates
Company Guidance
C3 AI guided Q4 FY26 revenue of $48.0M–$52.0M and a Q4 non‑GAAP loss from operations of $56M–$64M; full‑year FY26 revenue guidance is $246.7M–$250.7M with a non‑GAAP operating loss of $219.5M–$227.5M (guidance excludes approximately $10M–$12M of pretax restructuring charges). Management said the restructuring will reduce annual non‑GAAP operating expenses and cash burn by about $135M — including roughly $60M of headcount‑related savings from an approximate 26% workforce reduction (~280 roles) and about $75M of non‑employee expense cuts — with implementation substantially complete and the savings expected to be fully realized beginning in H2 FY27 (substantially implemented by Q2 FY27).C3ai Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
74
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 307.39M | 389.06M | 310.58M | 266.80M | 252.76M | 183.22M |
| Gross Profit | 133.57M | 235.86M | 178.56M | 180.46M | 189.05M | 138.70M |
| EBITDA | -436.25M | -311.82M | -306.92M | -284.40M | -190.93M | -55.96M |
| Net Income | -434.50M | -288.70M | -279.70M | -268.84M | -192.06M | -55.70M |
Balance Sheet | ||||||
| Total Assets | 895.78M | 1.03B | 1.04B | 1.10B | 1.17B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 621.92M | 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 | 176.30M | 187.58M | 164.87M | 173.36M | 181.41M | 135.30M |
| Stockholders Equity | 719.47M | 838.30M | 873.35M | 929.66M | 989.48M | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | -127.05M | -44.45M | -90.37M | -187.21M | -90.75M | -39.18M |
| Operating Cash Flow | -124.52M | -41.41M | -62.36M | -115.69M | -86.46M | -37.55M |
| Investing Cash Flow | 74.09M | 16.40M | -66.61M | 59.95M | 317.01M | -767.15M |
| Financing Cash Flow | 15.26M | 22.22M | 11.29M | 621.00K | 5.71M | 887.36M |
C3ai Technical Analysis
Positive
9.24
Price Trends
8.85
Positive
10.14
Negative
13.35
Negative
Market Momentum
0.03
Negative
53.62
Neutral
64.38
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 9.24 is above the 20-day moving average (MA) of 9.12, above the 50-day MA of 8.85, and below the 200-day MA of 13.35, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 64.38 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.41B | 10.72 | 22.44% | 1.41% | 6.47% | 10.82% | |
65 Neutral | $1.73B | 13.43 | 5.14% | ― | -0.20% | -28.17% | |
63 Neutral | $5.36B | 22.07 | 10.67% | ― | 14.21% | -2.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $1.61B | 23.28 | -37.51% | 3.38% | 3.81% | -636.38% | |
52 Neutral | $2.00B | -7.33 | -50.67% | ― | -20.34% | -8.67% | |
51 Neutral | $1.35B | -2.86 | -55.55% | ― | -16.22% | -41.59% |
* Technology Sector Average
AI
C3ai
9.29
-13.43
-59.11%
EPAM
Epam Systems
102.69
-73.26
-41.64%
G
Genpact
31.91
-10.89
-25.44%
GLOB
Globant SA
40.13
-60.49
-60.12%
CNXC
Concentrix
26.34
-27.40
-50.99%
BBAI
BigBearai Holdings
4.18
0.54
14.84%
C3ai Corporate Events
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...
Legal Proceedings
C3.ai Securities Class Action Narrowed by Court Ruling
Neutral
Mar 25, 2026
On March 12, 2026, a U.S. District Court ruling on a putative securities class action filed in March 2022 against C3.ai, Inc. and certain current and former executives granted in part and denied in part motions to dismiss, narrowing the case to li...
Business Operations and StrategyFinancial Disclosures
C3 AI Announces Major Restructuring to Cut Operating Costs
Negative
Feb 25, 2026
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 ...
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.