C3ai (AI) AI Stock Analysis

• Market Cap: $2.47B
• Dividend Yield: N/A
• Average Volume (3M): 9.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• 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: 9,287,801
• 30 Day Avg. Volume: 9,908,288
• 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: 1.01
• Enterprise Value/Revenue: 6.67
• Enterprise Value/Gross Profit: 11.81
• Enterprise Value/Ebitda: -6.92
• 1Y Price Target: $15.50
• Price Target Upside: -13.46% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 14

• Rating: 50 Neutral
• Price Target: $18.00 ▲(0.50% Upside)

C3.ai's overall stock score reflects moderate financial performance with significant profitability challenges and unattractive valuation. Technical analysis shows mixed signals, while the earnings call underscores uncertainty due to revenue decline and restructuring. The company's strong balance sheet and strategic partnerships are positive, but ongoing losses and lack of guidance weigh heavily on the score.

Positive Factors

Strategic Partnerships

Strategic partnerships with major firms like Nucor enhance C3.ai's market reach and credibility, potentially driving long-term revenue growth through collaborative projects and expanded customer bases.

Strong Cash Position

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

New Leadership

New leadership and organizational restructuring can drive growth and improve customer satisfaction, potentially enhancing operational efficiency and strategic execution in the long term.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in market demand or competitive positioning, which could impact C3.ai's ability to sustain growth and profitability over time.

Profitability Challenges

Ongoing operating and net losses highlight profitability challenges, which may strain financial resources and limit C3.ai's ability to invest in growth initiatives or withstand economic pressures.

Negative Free Cash Flow

Negative free cash flow suggests liquidity issues, which could hinder C3.ai's capacity to fund operations and growth projects, potentially affecting long-term financial health and stability.

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. 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: 17.91
• 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 17.91 is below the 20-day moving average (MA) of 18.08, below the 50-day MA of 18.07, and below the 200-day MA of 24.10, indicating a bearish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 52.53 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	78 Outperform	$70.92B	21.44	30.46%	3.06%	4.52%	-0.22%
G	76 Outperform	$6.86B	13.06	21.86%	1.68%	7.37%	-14.64%
ACN	74 Outperform	$150.07B	19.83	25.82%	2.52%	7.36%	6.18%
CTSH	74 Outperform	$32.14B	13.36	16.69%	1.87%	6.34%	12.16%
EPAM	68 Neutral	$7.93B	20.30	11.36%	―	9.73%	-0.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AI	50 Neutral	$2.47B	―	-40.94%	―	14.34%	-13.27%

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.