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C3.ai: Still An Ignored AI Play

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Update - Sept. 4, 2025

C3.ai still hasn't explained the reason for so much sales to just disappear during FQ1 while the FQ2 guidance for $72-$80M is only a small bounce back. The enterprise AI software company did announce a promising new CEO is a sign this could be the bottom. 

-FQ1 Non-GAAP EPS of -$0.37 misses by $0.16.
-Revenue of $70.26M (-19.4% Y/Y)

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Original article posted on July 1

  • C3.ai is experiencing strong overall growth, especially in professional services, but subscription revenue growth remains muted and needs improvement for stronger investor confidence.
  • The company’s partnership with Microsoft Azure and a major U.S. Air Force contract expansion highlight significant future growth catalysts and validation of its AI solutions.
  • Despite persistent operating losses, C3.ai’s robust $743 million cash balance and low EV/Sales multiple make the stock attractive compared to AI software peers.
  • The stock is a buy trading at just 5x EV/S targets for FY 2026.
C3.ai, Inc. (NYSE:AI) continues to have growth ignored by the stock market in the enterprise AI software space. The massive agentic AI opportunity plays perfectly into the C3.ai business plan. My investment thesis remains ultra-Bullish on the stock, trading near the yearly lows despite record results.

Read the full article on Seeking Alpha. 

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

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