C3ai (AI) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: N/A
• Average Volume (3M): 10.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• 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: 9,513,854
• 30 Day Avg. Volume: 10,040,396
• 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: 0.99
• Enterprise Value/Revenue: 6.67
• Enterprise Value/Gross Profit: 11.81
• Enterprise Value/Ebitda: -6.92
• 1Y Price Target: $17.38
• Price Target Upside: 0.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 43 Neutral
• Price Target: $15.00 ▼(-13.19% Downside)

C3ai's overall stock score is primarily impacted by its weak financial performance and technical analysis. The company's ongoing profitability challenges and negative valuation metrics are significant concerns. While the technical indicators suggest oversold conditions, the bearish momentum persists. The recent leadership change is a positive development, but its impact remains to be seen.

Positive Factors

Strategic Partnerships

Strategic partnerships with major firms enhance C3.ai's market reach and credibility, driving long-term revenue growth and industry influence.

Strong Cash Position

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

New Leadership

New leadership with a strong track record in AI can revitalize C3.ai's strategic direction, potentially improving execution and market positioning.

Negative Factors

Profitability Challenges

Persistent profitability issues, such as negative margins, can hinder C3.ai's ability to reinvest in growth and maintain competitive advantages.

Revenue Decline

A significant revenue decline indicates potential market share loss or demand issues, which could impact C3.ai's long-term growth prospects.

Sales Execution Challenges

Ineffective sales execution can limit C3.ai's ability to capitalize on market opportunities, affecting revenue growth and customer acquisition.

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: 17.28
• 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 17.28 is above the 20-day moving average (MA) of 16.95, below the 50-day MA of 19.90, and below the 200-day MA of 25.28, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 59.97 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
INFY	77 Outperform	69.92B	22.03	28.18%	3.07%	4.52%	-0.22%
G	76 Outperform	7.44B	14.16	20.81%	1.59%	7.37%	-14.64%
ACN	74 Outperform	148.91B	19.67	24.61%	2.55%	7.36%	6.18%
CTSH	74 Outperform	33.39B	13.88	15.93%	1.84%	6.34%	12.16%
EPAM	68 Neutral	8.71B	21.39	10.94%	―	9.73%	-0.29%
AI	43 Neutral	$2.50B	―	-40.94%	―	14.34%	-13.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

C3ai Corporate Events

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.

C3.ai Initiates Search for New CEO Amid Leadership Change

On July 21, 2025, C3.ai announced the initiation of a search for a new Chief Executive Officer to succeed Thomas M. Siebel, who will transition to the role of Executive Chairman. This decision follows Mr. Siebel’s diagnosis with an autoimmune disease, which has led to significant visual impairment. The move aims to ensure C3.ai’s continued growth and success, with Mr. Siebel remaining engaged until a successor is appointed.