C3ai (AI) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: N/A
• Average Volume (3M): 4.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: 1.84%
• EPS Growth: -27.74%
• Country: US
• Employees: 891
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.25
• Shares Outstanding: 137,253,300
• 10 Day Avg. Volume: 4,805,209
• 30 Day Avg. Volume: 4,855,792
• 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: 0.96
• Enterprise Value/Revenue: 4.81
• Enterprise Value/Gross Profit: 9.30
• Enterprise Value/Ebitda: -4.38
• 1Y Price Target: $15.17
• Price Target Upside: 20.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $14.00 ▲(11.11% Upside)

The score is held back primarily by very weak profitability and persistently negative cash flow despite a strong, low-debt balance sheet. Technicals also reflect a broader downtrend. The latest earnings call adds some support via improving bookings/revenue momentum, but ongoing loss guidance and cash burn keep the overall outlook constrained.

Positive Factors

Strong balance sheet / low leverage

C3.ai's near-zero debt and substantial equity provide durable financial flexibility to fund R&D, sales investments, or absorb operating volatility without immediate refinancing. This low leverage reduces insolvency risk and supports multi-quarter execution of strategic initiatives despite current losses.

Partner-driven go-to-market expansion

Heavy partner-sourced bookings and rapid joint pipeline growth with cloud and systems partners create a scalable, lower-cost distribution channel. Over 2–6 months this should deepen enterprise reach, accelerate large-deal capture, and improve sales efficiency as partners co-sell and embed C3.ai in broader cloud solutions.

Federal credentialing and contract wins

FedRAMP authorization and recent Army selection materially strengthen federal market access and procurement stickiness, supporting multi-year, high-value contracts. Given federal bookings already rose sharply, these credentials increase durable revenue visibility and reduce sales friction into government programs.

Negative Factors

Persistent negative operating and free cash flow

Continued cash burn limits the firm's ability to self-fund product development and GTM scaling, forcing reliance on external capital or reduced investment. Over several quarters this constrains growth, risks dilution from fundraising, and magnifies execution pressure until operating cash flow turns sustainably positive.

Very weak profitability / extreme operating losses

Severe negative margins indicate current revenue cannot cover operating cost base, signaling poor operating leverage. Unless structural cost reductions or materially higher high-margin sales occur, sustained losses erode returns and make achieving consistent, durable profitability over the medium term uncertain.

Revenue decline and negative returns on equity

Falling top-line with deeply negative ROE implies the business is shrinking its economic footprint while consuming shareholder capital. This combination undermines reinvestment effectiveness, increases the burden on management to restore growth, and makes multi-quarter recovery dependent on both revenue stabilization and margin improvement.

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

Financial profile is mixed: a very strong, low-leverage balance sheet (minimal debt and substantial equity) offsets deteriorating operations with TTM revenue down 5.2%, extreme operating losses (EBIT margin about -112.6%), and continued negative operating/free cash flow (about -$90.8M/-$93.2M).

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

C3ai Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 12.6 is below the 20-day moving average (MA) of 13.41, below the 50-day MA of 14.00, and below the 200-day MA of 19.27, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 32.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AI.

C3ai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	78 Outperform	$7.81B	14.59	22.32%	1.41%	7.40%	-14.45%
EPAM	73 Outperform	$12.05B	33.32	10.21%	―	14.26%	-15.49%
GLOB	67 Neutral	$3.05B	30.85	4.91%	―	5.56%	-42.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNXC	50 Neutral	$2.59B	-1.74	-37.99%	3.38%	3.40%	53.13%
AI	47 Neutral	$1.77B	-4.64	-46.77%	―	1.84%	-27.74%
BBAI	46 Neutral	$2.69B	-4.23	-111.83%	―	-6.95%	-53.69%

C3ai Corporate Events

C3 AI Appoints Mike Clayville to Board of Directors

On November 9, 2025, C3 AI expanded its board of directors by appointing Mike Clayville as a Class II director, effective immediately. Clayville, who has extensive experience in enterprise software and cloud infrastructure, will serve until the company’s 2028 Annual Meeting of Stockholders. His appointment is expected to enhance C3 AI’s growth and customer relationship strategies, leveraging his background from roles at Stripe and Amazon Web Services. This strategic move underscores C3 AI’s commitment to addressing challenges in Enterprise AI and strengthening its market position.

The most recent analyst rating on (AI) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on C3ai stock, see the AI Stock Forecast page.