Imagine a world where artificial intelligence seamlessly enhances decision-making across industries, from healthcare to finance. C3.ai, Inc. is at the forefront of this transformation, revolutionizing how businesses leverage AI with its innovative software solutions. Renowned for its robust application platform and strategic partnerships, C3.ai empowers organizations to optimize operations and drive efficiency. As we delve into the investment potential of this tech leader, I invite you to consider whether its current market valuation aligns with its impressive growth trajectory.
Table of contents
Company Description
C3.ai, Inc. is a leading enterprise artificial intelligence (AI) software company, founded in 2009 and headquartered in Redwood City, California. Operating in North America, Europe, the Middle East, Africa, and the Asia Pacific, C3.ai specializes in providing a robust application platform that facilitates the design, development, and deployment of AI-driven solutions across various industries, including healthcare, financial services, and manufacturing. Its offerings range from customer relationship management to predictive maintenance and fraud detection, positioning the company as a key player in the information technology services sector. C3.ai’s strategic partnerships with industry giants like Microsoft and AWS further enhance its innovation capabilities, solidifying its role in shaping the future of enterprise AI solutions.
Fundamental Analysis
In this section, I will analyze C3.ai, Inc.’s income statement, financial ratios, and dividend payout policy to evaluate its financial health and investment potential.
Income Statement
Below is the income statement for C3.ai, Inc. (Ticker: AI), detailing key financial metrics over the past five fiscal years.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 183.2M | 252.8M | 266.8M | 310.6M | 389.1M |
| Cost of Revenue | 44.5M | 63.7M | 86.3M | 132.0M | 153.2M |
| Operating Expenses | 199.0M | 385.2M | 471.0M | 496.9M | 560.3M |
| Gross Profit | 138.7M | 189.0M | 180.5M | 178.6M | 235.9M |
| EBITDA | -55.9M | -190.9M | -284.4M | -306.9M | -311.8M |
| EBIT | -60.3M | -196.1M | -290.5M | -318.3M | -324.4M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Net Income | -55.7M | -192.1M | -268.8M | -279.7M | -288.7M |
| EPS | -0.90 | -1.84 | -2.45 | -2.34 | -2.24 |
| Filing Date | 2021-06-25 | 2022-06-23 | 2023-06-22 | 2024-06-18 | 2025-06-23 |
Over the past five years, C3.ai has shown a steady increase in revenue from 183.2M in 2021 to 389.1M in 2025, indicating a compound annual growth rate (CAGR) of approximately 34%. However, despite the positive revenue trend, net income has consistently remained negative, reflecting ongoing operating losses. The most recent year (2025) saw a marginal increase in gross profit despite rising operating expenses, leading to a slight improvement in the net loss. The company’s focus on scaling operations while managing costs is crucial for future profitability. Careful monitoring of their expense management will be vital as they aim for sustainable growth.
Financial Ratios
The following table presents the key financial ratios for C3.ai, Inc. over the last available years, allowing for a quick comparison of performance metrics.
| Financial Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -30.4% | -75.9% | -100.8% | -90.1% | -74.2% |
| ROE | -5.2% | -19.4% | -28.9% | -32.0% | -34.4% |
| ROIC | -5.7% | -19.2% | -30.0% | -33.9% | -36.2% |
| WACC | N/A | N/A | N/A | N/A | N/A |
| P/E | -67.4 | -9.2 | -7.6 | -9.6 | -9.8 |
| P/B | 3.5 | 1.8 | 2.2 | 3.1 | 3.4 |
| Current Ratio | 9.4 | 7.1 | 6.5 | 8.8 | 6.9 |
| Quick Ratio | 9.4 | 7.2 | 6.5 | 8.8 | 6.9 |
| D/E | 0.005 | 0.004 | 0.002 | 0.004 | 0.072 |
| Debt-to-Assets | 0.005 | 0.003 | 0.002 | 0.003 | 0.059 |
| Interest Coverage | 0 | 0 | 0 | 0 | 0 |
| Asset Turnover | 0.15 | 0.22 | 0.24 | 0.30 | 0.38 |
| Fixed Asset Turnover | 29.9 | 17.4 | 3.2 | 3.5 | 4.9 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
In 2025, C3.ai, Inc. shows concerning profitability metrics, with a net margin of -74.2% and negative returns on equity and invested capital. The high current and quick ratios (6.9) indicate strong liquidity, yet the P/E ratio remains negative, suggesting the company is not generating profits. The high debt-to-equity ratio (0.072) raises some concerns regarding leverage.
Evolution of Financial Ratios
Over the past five years, C3.ai’s financial ratios indicate a downward trend in profitability, with net margins and returns remaining negative. However, liquidity ratios have generally improved, suggesting that while the company struggles to generate profits, it maintains a solid liquidity position.
Distribution Policy
C3.ai, Inc. does not currently pay dividends, reflecting its strategy to reinvest earnings into growth initiatives and R&D. The company is in a high-growth phase, prioritizing expansion over immediate shareholder returns. Additionally, C3.ai engages in share buybacks, signaling a commitment to enhancing shareholder value. While this approach may support long-term value creation, the absence of dividends raises questions about sustainability, given the ongoing net losses and negative cash flows.
Sector Analysis
C3.ai, Inc. operates within the Information Technology Services sector, specializing in enterprise AI software solutions. Its competitive edge lies in a robust application platform and strategic partnerships across various industries.
Strategic Positioning
C3.ai, Inc. holds a competitive position in the enterprise artificial intelligence software market, with a market cap of approximately 1.77B. The company’s diverse product offerings, such as C3 AI CRM and C3 AI Predictive Maintenance, address various industry needs, enhancing its market share. However, competitive pressure from both established players and emerging startups poses significant challenges. Additionally, rapid technological advancements necessitate continuous innovation to avoid disruption. As C3.ai continues to forge strategic partnerships, its ability to adapt will be crucial for maintaining its market position.
Revenue by Segment
The following chart illustrates the revenue distribution by segment for C3.ai, Inc. over the fiscal years, highlighting the performance of key revenue streams.
In analyzing C3.ai’s revenue trends, we see a consistent growth trajectory in the “License and Service” segment, which increased from 157.4M in FY2021 to 278.1M in FY2024. Conversely, “Professional Services” showed more volatility, peaking at 45.8M in FY2022 before declining to 32.5M in FY2024. The overall trend indicates that while the primary revenue driver remains the “License and Service” segment, reliance on “Professional Services” introduces some margin risks. Notably, the growth rate for the latest fiscal year has decelerated compared to prior years, suggesting potential market saturation or increased competition in the AI sector.
Key Products
Below is a table summarizing the key products offered by C3.ai, Inc., which highlight the company’s focus on enterprise artificial intelligence solutions.
| Product | Description |
|---|---|
| C3 AI Application Platform | An application development and runtime environment for customers to design, develop, and deploy enterprise AI applications. |
| C3 AI Ex Machina | A tool designed for preparing analysis-ready data, enhancing the efficiency of data analysis processes. |
| C3 AI CRM | A customer relationship management solution tailored for specific industries, enabling better customer interactions. |
| C3 AI Data Vision | A visualization tool that helps users understand and leverage the relationships between different data entities. |
| C3 AI Inventory Optimization | A solution that optimizes raw materials, in-process, and finished goods inventory levels for better supply chain management. |
| C3 AI Supply Network Risk | Provides visibility into potential risks of disruption throughout supply chain operations. |
| C3 AI Customer Churn Management | Enables monitoring of customer satisfaction and predicts potential churn with AI-driven insights. |
| C3 AI Production Schedule Optimization | A solution aimed at optimizing production schedules to enhance operational efficiency. |
| C3 AI Predictive Maintenance | Offers insights into asset risks, aiding maintenance planners and equipment operators in decision-making. |
| C3 AI Fraud Detection | Identifies revenue leakage and maintenance or safety issues to mitigate risks. |
| C3 AI Energy Management | A solution focused on optimizing energy consumption across various sectors. |
Each of these products demonstrates C3.ai’s commitment to leveraging AI to boost operational efficiency and decision-making across multiple industries.
Main Competitors
In the competitive landscape of the enterprise artificial intelligence (AI) software market, C3.ai, Inc. faces several notable companies that are significant players in this sector.
| Company | Market Share |
|---|---|
| No verified competitors were identified from available data. |
As a result, we can only estimate that C3.ai, Inc. holds a substantial position within the AI software market, particularly in North America and Europe, but without direct competitors listed, the exact competitive dynamics remain unclear. The company operates in a rapidly evolving sector with a focus on various industries, which may contribute to its sector dominance.
Competitive Advantages
C3.ai, Inc. leverages its robust enterprise AI software platform, which is designed for various industries including energy, healthcare, and financial services. Its competitive edge lies in its strategic partnerships with major players like AWS and Microsoft, enhancing its market reach and technological capabilities. Looking ahead, the company is poised to expand into new markets and develop innovative applications that address emerging challenges, such as predictive maintenance and supply chain risk management, further solidifying its position in the rapidly evolving AI landscape.
SWOT Analysis
This SWOT analysis aims to provide insights into C3.ai, Inc.’s strategic position within the market.
Strengths
- Leading AI technology
- Strong partnerships with major firms
- Diverse application offerings
Weaknesses
- High market volatility
- No dividend payments
- Dependence on large clients
Opportunities
- Growing demand for AI solutions
- Expansion into new markets
- Increasing focus on digital transformation
Threats
- Intense competition in the AI sector
- Regulatory challenges
- Economic downturn risks
Overall, C3.ai, Inc. possesses robust strengths and opportunities that can drive growth, but it must navigate significant weaknesses and threats. A strategic focus on innovation and market expansion while managing risks will be crucial for sustainable success.
Stock Analysis
Over the past year, C3.ai, Inc. (ticker: AI) has experienced significant price movements, reflecting the volatile dynamics of the tech stock sector. The company’s stock price has fluctuated notably, with key levels that indicate a bearish sentiment prevailing among investors.
Trend Analysis
Analyzing the stock’s performance over the last year, C3.ai has registered a percentage change of -53.29%, indicating a bearish trend. This decline suggests a negative investor sentiment, further supported by an acceleration status of deceleration. The stock has seen notable highs of 40.52 and lows of 13.41, with a standard deviation of 5.59 reflecting considerable volatility in its price movements.
Volume Analysis
Examining trading volumes over the last three months, total trading activity has registered approximately 3.93B shares, with buyer volume at 1.45B shares (36.84%) and seller volume at 2.37B shares (63.16%). The trend indicates decreasing volume, which suggests a seller-dominant market sentiment. This pattern reflects a cautious approach among investors, likely due to the ongoing bearish trend in the stock price.
Analyst Opinions
Recent analyst recommendations for C3.ai, Inc. (AI) indicate a cautious stance, with a consensus rating of “D+”. Analysts highlight concerns regarding the company’s financial metrics, particularly a low score in discounted cash flow and return on equity. For instance, notable analysts suggest a “hold” position given the high debt-to-equity ratio and underwhelming price-to-earnings performance. Overall, the sentiment leans towards a “sell” for the current year, emphasizing the need for improved financial stability before considering a buy.
Stock Grades
C3.ai, Inc. (AI) has recently received a series of stock ratings from reputable grading companies. Here’s a summary of those grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | maintain | Neutral | 2025-09-12 |
| Morgan Stanley | maintain | Underweight | 2025-09-09 |
| Canaccord Genuity | maintain | Hold | 2025-09-05 |
| Needham | maintain | Hold | 2025-09-04 |
| Keybanc | maintain | Underweight | 2025-09-04 |
| JMP Securities | maintain | Market Outperform | 2025-09-04 |
| UBS | maintain | Neutral | 2025-09-04 |
| Oppenheimer | downgrade | Perform | 2025-08-13 |
| DA Davidson | downgrade | Underperform | 2025-08-11 |
| Needham | maintain | Hold | 2025-08-11 |
Overall, the trend shows a cautious sentiment from analysts, with several maintaining their grades while a few companies have downgraded their ratings. Notably, the consistent “Hold” ratings suggest a wait-and-see approach among analysts, indicating that investors may want to monitor C3.ai closely for any significant developments.
Target Prices
Analysts have a consensus target price for C3.ai, Inc. (AI) indicating moderate expectations for the stock’s performance.
| Target High | Target Low | Consensus |
|---|---|---|
| 16 | 11 | 13.5 |
The overall analyst expectations suggest that C3.ai’s stock could stabilize around the consensus target of 13.5, with a possible range between 11 and 16.
Consumer Opinions
Consumer sentiment towards C3.ai, Inc. reflects a mix of enthusiasm and concern, showcasing the diverse experiences of its user base.
| Positive Reviews | Negative Reviews |
|---|---|
| Innovative AI solutions that enhance efficiency. | High subscription costs deter small businesses. |
| Excellent customer support and resources. | Performance issues during peak usage times. |
| User-friendly interface and robust features. | Complexity of integration with existing systems. |
Overall, consumer feedback on C3.ai, Inc. highlights strengths in innovation and customer support, while recurring weaknesses include pricing concerns and integration challenges.
Risk Analysis
In this section, I will outline the potential risks associated with investing in C3.ai, Inc. (ticker: AI) to help you make informed decisions.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in AI sector can affect stock prices. | High | High |
| Regulatory Changes | New regulations on AI technology could impact operations. | Medium | High |
| Competition | Increasing competition from other AI firms can erode market share. | High | Medium |
| Technology Risks | Potential issues with AI models or software development could hinder growth. | Medium | High |
| Economic Factors | Broader economic downturns may reduce client expenditure on AI solutions. | Medium | Medium |
Synthesis: The most pressing risks for C3.ai include high market volatility and the potential impact of regulatory changes, both of which can significantly affect stock performance. Stay informed of these factors to manage your investment effectively.
Should You Buy C3.ai, Inc.?
C3.ai, Inc. has a negative net margin of -0.742, indicating a loss in profitability. The company’s debt levels are relatively low, with a debt-to-equity ratio of 0.072, suggesting manageable debt levels. However, the overall fundamentals show a bearish trend, with an overall rating of D+.
A. Favorable signals There are no favorable signals.
B. Unfavorable signals The company shows a negative net margin of -0.742, indicating a loss. Additionally, the return on invested capital (ROIC) is -0.362, which is below the weighted average cost of capital (WACC) of 12.6, leading to value destruction. The long-term trend is negative, with a significant price change percentage of -53.29, and recent seller volume of 297.9M exceeds buyer volume of 158.1M, indicating that sellers dominate the market.
C. Conclusion Given the negative net margin, negative long-term trend, and higher seller volume compared to buyer volume, it might be prudent to wait for more favorable conditions before considering an investment in C3.ai, Inc.
The company also faces risks due to its negative profitability and value destruction, combined with a bearish market trend.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- C3.ai, Inc. (AI) is Attracting Investor Attention: Here is What You Should Know – Yahoo Finance (Nov 17, 2025)
- C3.ai, Inc. (AI) Suffers a Larger Drop Than the General Market: Key Insights – Yahoo Finance (Nov 17, 2025)
- Why Fresh Shorts In C3.Ai Are Risky Now (NYSE:AI) – Seeking Alpha (Nov 18, 2025)
- The Zacks Analyst Blog Highlights BigBear.ai, Palantir and C3.ai – Yahoo Finance (Nov 17, 2025)
- C3.ai, Inc. (AI) Stock Sinks As Market Gains: Here’s Why – Nasdaq (Nov 11, 2025)
For more information about C3.ai, Inc., please visit the official website: C3.ai
