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C3ai
(NYSE:AI)
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Rating:51Neutral
Price Target:
$11.50
▲(17.47% Upside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by weak financial performance—shrinking TTM revenue, deeply negative profitability, and ongoing cash burn—despite a low-debt balance sheet. Offsetting factors include improving (but not fully long-term bullish) technical momentum and a more positive earnings-call narrative highlighting bookings growth, cost reductions, margin improvement, and a recent quarter of positive free cash flow, though guidance still indicates continued operating losses.
Positive Factors
Subscription-led revenue model
A revenue base dominated by subscriptions can support repeatable customer relationships and greater visibility than project-only work. The 94% mix indicates that C3.ai’s core business is aligned with scalable enterprise software economics, provided customer retention and usage remain strong.
Negative Factors
Shrinking revenue and severe margin pressure
The latest financial trajectory shows that C3.ai has not yet converted enterprise AI demand into durable, profitable growth. Falling revenue and sharply lower gross margin suggest the current cost and delivery structure is not scaling with sales, weakening earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Subscription-led revenue model
A revenue base dominated by subscriptions can support repeatable customer relationships and greater visibility than project-only work. The 94% mix indicates that C3.ai’s core business is aligned with scalable enterprise software economics, provided customer retention and usage remain strong.
Read all positive factors
C3ai Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Reveals profitability across different business areas, highlighting which segments drive the most earnings and where there might be opportunities or challenges.
Reveals profitability across different business areas, highlighting which segments drive the most earnings and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyC3ai (AI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.85B
Dividend Yield1.14%
Average Volume (3M)4.94M
Price to Earnings (P/E)―
Beta (1Y)2.08
Revenue Growth-37.55%
EPS Growth-18.96%
CountryUS
Employees764
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-3.09
Shares Outstanding157,279,860
10 Day Avg. Volume4,281,464
30 Day Avg. Volume4,941,329
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.90
Price to Sales (P/S)4.96
P/FCF Ratio-6.51
Enterprise Value/Market Cap0.42
Enterprise Value/Revenue3.35
Enterprise Value/Gross Profit11.50
Enterprise Value/Ebitda-1.79
Forecast
1Y Price Target
$9.50Price Target Upside-2.96% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering8
EPS Forecast (FY)-0.76
Revenue Forecast (FY)$221.93M
C3ai Business Overview & Revenue Model
Company Description
C3.ai, Inc. is a leading provider of enterprise artificial intelligence (AI) software solutions, serving a global clientele across North America, Europe, the Middle East, Africa, and the Asia Pacific region. Its core offerings include the C3 AI Ap...
How the Company Makes Money
C3.ai generates revenue primarily by selling subscriptions to its enterprise AI software. Its core revenue stream is subscription revenue from customers that license access to its AI software (including its AI platform and packaged AI applications...
C3ai Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
The call had a strongly positive tone, with management highlighting early turnaround progress, 73% bookings growth, 138% federal bookings growth, revenue above guidance, positive free cash flow, substantial cost reductions, improved gross margin, a strong cash position, and favorable product recognition. The primary challenges were the company's continuing operating losses, expected near-term gross margin moderation, the need to establish consistent revenue growth, and the early commercialization stage of C3 Code.Positive Updates
Turnaround Execution and Management Restructuring
Management stated that the turnaround is on track after restructuring the company, sales, products, and services; resetting the cost structure; implementing rigorous cost controls; reinstating clear ownership, hard deadlines, and weekly reviews; and appointing experienced executives across sales, products, services, finance, and legal.
Negative Updates
Prior Underperformance and Need for a Turnaround
The CEO said the company had been underperforming despite strong products, a large and rapidly growing market, and a strong balance sheet, attributing the problem to execution and stating that the company needed to be turned around.
Read all updates
Q1-2027 Updates
Positive
Negative
Turnaround Execution and Management Restructuring
Management stated that the turnaround is on track after restructuring the company, sales, products, and services; resetting the cost structure; implementing rigorous cost controls; reinstating clear ownership, hard deadlines, and weekly reviews; and appointing experienced executives across sales, products, services, finance, and legal.
Read all positive updates
Company Guidance
For the second quarter of fiscal year 2027, C3 AI guided to revenue of $51 million to $55 million and non-GAAP loss from operations of $34.5 million to $42.5 million; for fiscal year 2027, it guided to revenue of $210 million to $240 million and non-GAAP loss from operations of $123 million to $155 million. For the remainder of fiscal year 2027, the company expects its free cash flow to broadly align with a guidance range for non-GAAP loss from operations, and next quarter, as it makes selective investments in a forward-deployed engineering organization, it expects non-GAAP gross margin to moderate to mid-40s.C3ai Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
76
Positive
Cash Flow
27
Negative
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 232.38M | 250.27M | 389.06M | 310.58M | 266.80M | 252.76M |
| Gross Profit | 67.61M | 77.38M | 235.86M | 178.56M | 180.46M | 189.05M |
| EBITDA | -435.53M | -455.99M | -275.12M | -266.19M | -262.08M | -186.09M |
| Net Income | -446.41M | -470.37M | -288.70M | -279.70M | -268.84M | -192.06M |
Balance Sheet | ||||||
| Total Assets | 874.80M | 816.27M | 1.03B | 1.04B | 1.10B | 1.17B |
| Cash, Cash Equivalents and Short-Term Investments | 651.07M | 575.45M | 742.69M | 750.37M | 730.98M | 960.16M |
| Total Debt | 0.00 | 5.58M | 4.79M | 3.23M | 2.34M | 3.61M |
| Total Liabilities | 179.91M | 162.52M | 187.58M | 164.87M | 173.36M | 181.41M |
| Stockholders Equity | 694.90M | 653.75M | 838.30M | 873.35M | 929.66M | 989.48M |
Cash Flow | ||||||
| Free Cash Flow | -154.33M | -190.69M | -44.45M | -90.37M | -187.21M | -90.75M |
| Operating Cash Flow | -153.18M | -188.78M | -41.41M | -62.36M | -115.69M | -86.46M |
| Investing Cash Flow | 121.61M | 75.08M | 16.40M | -66.61M | 59.95M | 317.01M |
| Financing Cash Flow | 87.06M | 15.54M | 22.22M | 11.29M | 621.00K | 5.71M |
C3ai Technical Analysis
Positive
9.79
Price Trends
10.48
Positive
10.03
Positive
10.18
Positive
Market Momentum
0.26
Negative
64.84
Neutral
85.45
Negative
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 9.79 is below the 20-day moving average (MA) of 10.90, below the 50-day MA of 10.48, and below the 200-day MA of 10.18, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 64.84 is Neutral, neither overbought nor oversold. The STOCH value of 85.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AI.
C3ai Risk Analysis
C3ai disclosed 63 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.78B | 10.12 | 22.91% | 2.13% | 6.89% | 11.22% | |
73 Outperform | $1.57B | 14.08 | 5.33% | ― | -1.26% | 2.59% | |
67 Neutral | $5.84B | 15.28 | 11.19% | ― | 10.76% | 4.93% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $1.59B | -0.67 | -95.60% | 5.55% | 2.56% | -918.98% | |
51 Neutral | $1.85B | -3.73 | -62.87% | 1.14% | -37.55% | -18.96% | |
49 Neutral | $1.15B | -14.06 | -12.34% | ― | -13.72% | 87.44% |
* Technology Sector Average
AI
C3ai
11.53
-7.84
-40.47%
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113.24
-33.46
-22.81%
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CNXC
Concentrix
25.95
-16.81
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BBAI
BigBearai Holdings
2.39
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-72.87%
C3ai Corporate Events
Executive/Board Changes
C3.ai Appoints John Dwyer to Board of Directors
Neutral
Aug 27, 2026
On August 25, 2026, C3.ai, Inc. appointed John C. Dwyer to its board of directors as a Class III director, with his initial term running until the company’s 2026 Annual Meeting of Stockholders. The appointment was made without any special ar...
Business Operations and StrategyLegal Proceedings
C3.ai Securities Class Action Dismissed, Reducing Legal Risk
Positive
Jul 17, 2026
On August 22, 2025, a putative securities class action complaint titled John Liggett, Sr., et al. v. C3 AI, Inc., et al., No. 3:25-cv-07129-TLT, was filed in the U.S. District Court for the Northern District of California against C3.ai, Inc. and c...
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.