C3ai (AI) AI Stock Analysis

• Market Cap: $2.04B
• Dividend Yield: N/A
• Average Volume (3M): 6.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• 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: 6,894,827
• 30 Day Avg. Volume: 6,364,125
• 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: 0.87
• Enterprise Value/Revenue: 5.01
• Enterprise Value/Gross Profit: 9.68
• Enterprise Value/Ebitda: -4.56
• 1Y Price Target: $15.17
• Price Target Upside: 7.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $15.00 ▲(6.76% Upside)

C3ai's overall stock score reflects significant financial challenges, with ongoing losses and negative cash flow being major concerns. While recent earnings call highlights some positive growth in bookings and strategic partnerships, the financial instability and valuation issues weigh heavily on the score. Technical indicators suggest a bearish trend, and while corporate events show promise, they are not enough to offset the broader financial difficulties.

Positive Factors

Strategic Partnerships

Partnerships with major government entities like the U.S. Army enhance C3.ai's credibility and market reach, supporting long-term growth in the defense sector.

Federal Sector Growth

Strong growth in federal bookings indicates robust demand for C3.ai's solutions, enhancing revenue stability and market positioning in a key sector.

Product Innovation

Recognition as a leading AI platform underscores C3.ai's innovation capabilities, strengthening its competitive edge in the industrial AI market.

Negative Factors

Negative Cash Flow

Persistent negative cash flow strains financial resources, limiting C3.ai's ability to invest in growth initiatives and potentially impacting long-term viability.

Operating and Net Losses

Continued operating and net losses highlight profitability challenges, which could hinder C3.ai's ability to sustain operations without external funding.

Declining Revenue Growth

Declining revenue growth suggests potential market challenges or operational inefficiencies, which could weaken C3.ai's competitive position over time.

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

C3ai faces substantial financial challenges across all verticals. The income statement shows declining revenue and significant losses, while the balance sheet reflects low leverage but poor returns on equity. Cash flow analysis reveals negative cash generation, despite some improvement in free cash flow growth. The company needs to address profitability and cash flow issues to improve its financial health.

Income Statement

C3ai's income statement reveals significant challenges, with negative net profit margins and declining revenue growth. The TTM data shows a gross profit margin of 51.76%, but net profit margin is deeply negative at -108.05%. The company has experienced a revenue decline of 4.36% in the TTM, indicating potential market challenges or operational inefficiencies. Despite a relatively stable gross profit margin, the negative EBIT and EBITDA margins highlight ongoing profitability issues.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio, indicating minimal leverage, which is a positive aspect. However, the return on equity is negative at -40.84% in the TTM, reflecting poor profitability relative to shareholder equity. The equity ratio is strong, suggesting a solid capital structure, but the negative ROE indicates that the company is not generating returns for its shareholders.

Cash Flow

C3ai's cash flow statement highlights significant challenges with negative operating cash flow and free cash flow. The TTM data shows a free cash flow to net income ratio of 1.03, indicating that free cash flow is slightly better than net income, but both are negative. The operating cash flow to net income ratio is -0.69, reflecting inefficiencies in converting income into cash. Despite a high free cash flow growth rate, the overall cash flow position remains weak.

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: Negative
• Last Price: 14.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 14.05 is below the 20-day moving average (MA) of 14.59, below the 50-day MA of 16.02, and below the 200-day MA of 20.34, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 13.03 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
G	78 Outperform	$8.24B	15.39	22.32%	1.42%	7.40%	-14.45%
EPAM	70 Neutral	$11.37B	31.18	10.21%	―	14.26%	-15.49%
CNXC	69 Neutral	$2.46B	8.34	7.08%	3.40%	3.40%	53.13%
GLOB	67 Neutral	$2.91B	29.46	4.91%	―	5.56%	-42.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BBAI	49 Neutral	$2.56B	-3.83	-111.83%	―	-6.95%	-53.69%
AI	47 Neutral	$2.04B	-4.96	-46.77%	―	1.84%	-27.74%

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.

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.

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.