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C3.ai: Forgotten AI Software Player

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Update - May 28, 2025

C3.ai reported a FQ4 beat, but subscription revenues only grew 9% with all of the growth coming from prioritized professional services. 

-Q4 Non-GAAP EPS of -$0.16 beats by $0.04.
-Revenue of $108.72M (+25.5% Y/Y) beats by $1.02M.

FY26 guidance is a very wide range with the suggestion the low end is due to geopolitical risks, though those risks have disappeared of late. The guidance suggests revenues of $464 million versus consensus estimates around $466 million for growth of 20%. 


Original article posted on May 21

  • C3.ai, Inc. trades back at yearly lows despite reporting strong growth in the last year.
  • The enterprise AI software company has a ramping set of pilot deals and a surge in potential new agreements due to an AI partnership with Microsoft Azure.
  • Despite current losses, C3.ai maintains a robust cash position and is prioritizing customer acquisition over immediate profitability to capture the generative AI opportunity.
  • AI stock is cheap, trading at less than 5x EV/S targets for FY26.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »
C3.ai, Inc. (NYSE:AI) remains the forgotten enterprise AI software company despite strong growth. The stock market appears to discredit the company due to ongoing losses, even though the scale remains relatively small with a run rate of only around $400 million. My investment thesis remains ultra-bullish on the stock after the dip to $22.


Read the full article at Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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