C3.ai (AI) Stock: Recent Performance and Future Outlook

C3.ai (NYSE: AI) stock has been volatile, but its recent acceleration in revenue growth and expansion into generative AI show potential for traders looking at enterprise software plays in the artificial intelligence space. The company’s shift to a consumption-based pricing model, deeper integration with Microsoft and AWS, and a growing list of federal contracts are reshaping the business. That said, traders need to stay grounded—this is still a growth-stage software company burning cash and working to prove its long-term edge.

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Read this article because it breaks down C3.ai’s stock performance, recent earnings, and competitive position to help you make more informed trading decisions.

I’ll answer the following questions:

• What is the current stock price of C3.ai?
• What is C3.ai’s stock ticker symbol?
• How has C3.ai stock performed over the past 52 weeks?
• What did C3.ai report in its most recent earnings call?
• What are analysts saying about C3.ai’s stock price targets?
• How does C3.ai compare to competitors in the AI industry?
• Is C3.ai currently a profitable company?
• How can I buy shares of C3.ai?

Let’s get to the content!

Stock Performance and Growth Metrics of C3.ai

C3.ai’s stock performance has reflected both the hype and the real challenges that come with early-stage AI companies. Shares are down roughly 26% year-to-date as of June 2025, yet the stock popped following its fiscal Q4 2025 earnings due to better-than-expected revenue growth and forward guidance. This kind of volatility is common in speculative tech sectors, especially when investor expectations get ahead of execution. C3.ai now trades around 8 times forward sales, which puts it in the higher range of software valuation—reasonable if growth holds up, risky if it stalls.

The company reported $389 million in revenue for fiscal 2025, up 25% year over year. That’s a clear acceleration from just 6% growth in fiscal 2023. A big part of that turnaround comes from C3 Generative AI—its suite of low-code AI tools built for enterprise workflows. Management is guiding for another 15% to 25% growth in fiscal 2026. These are decent metrics, but like I always say: revenue growth only matters if it eventually leads to real profits and cash flow.

Revenue Trends and Earnings Reports

C3.ai’s earnings reports over the last three fiscal years have painted a picture of a company adapting fast to the markets but still working through growing pains. Revenue in fiscal 2023 came in sluggish at just 6% growth, mostly due to macro headwinds and a tough transition to a usage-based pricing model. In fiscal 2024 and fiscal 2025, revenue growth accelerated to 16% and 25% respectively, with strong contributions from generative AI applications and government contracts.

The shift to a consumption-based model, introduced in late 2022, is still shaking out. It lowered upfront subscription revenue but helped bring in new customers who preferred a pay-as-you-go approach. In Q4 2025, non-license subscription revenues declined slightly, raising some questions about sustainability. According to the company, over 150 active pilots have yet to convert into production contracts—potential upside, but not guaranteed. As I teach, don’t trade earnings headlines alone. Look at the forward-looking metrics like bookings, guidance, and backlog conversion.

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Customer Acquisition and Retention

C3.ai’s ability to attract and retain enterprise customers is improving, but it’s not without risks. The company has started expanding beyond its heavy reliance on oil and gas by adding clients in healthcare, manufacturing, and federal defense. Revenue not tied to energy grew 48% year over year in fiscal 2025, which is a key sign the platform is gaining broader traction. Still, the business remains concentrated—contracts with a few large customers, including Baker Hughes, make up a big chunk of revenue.

The recent three-year renewal of the Baker Hughes joint venture provides a cushion, but dependency on one relationship for over 30% of revenue creates risk. Long sales cycles in the enterprise software space add more uncertainty, especially when companies hesitate to move pilots into long-term commitments. I always stress this with newer traders: customer growth isn’t just about adding logos. You want to see deal sizes grow, retention improve, and pilot programs graduate to full deployments.

Profitability and Cash Flow Position

C3.ai remains unprofitable, and that’s a concern. Despite solid top-line growth, the company posted a negative EBITDA of $311.8 million in the trailing 12 months. Gross margins have declined as well, reflecting a mix shift toward services and infrastructure-heavy deployments. The good news: cash burn is slowing, and the company has over $700 million in cash and short-term investments. That gives it runway—but not forever.

Operating cash flow has improved significantly, from negative 43% of sales in 2023 to positive 10.6% in the most recent period. Management projects are reaching consistent positive free cash flow by fiscal 2027, and if they hit that, it will be a major milestone. But until the business proves it can turn growth into real profitability, traders should stay cautious. Like I teach in my strategy sessions, growing revenue while bleeding cash is not a sustainable model unless there’s a clear path to upside and durability.

C3.ai Stock’s Strategic Partnerships and Market Position

C3.ai has positioned itself as a leading AI software company by forming strong strategic partnerships and targeting high-value sectors. These partnerships give it credibility and scale, while its platform’s flexibility supports deployments across multiple industries. In my years teaching traders, I’ve seen how alliances with larger players can act as validation points—especially in early-stage technology companies trying to break through.

The platform’s low-code AI tools and prebuilt applications have helped position it as a viable enterprise-grade solution. With competitors like Palantir and Salesforce also pushing into enterprise AI, C3.ai’s partnerships and sector focus are key parts of its market position. Whether that translates into long-term differentiation depends on execution, but for now, the alignment with top-tier partners and government agencies gives it a serious shot at scaling.

Collaborations with Microsoft and AWS

C3.ai’s partnerships with Microsoft Azure and Amazon Web Services significantly boost its reach and credibility in the AI software market. These relationships provide infrastructure support, simplify cloud deployments, and enable co-selling opportunities. As a preferred Microsoft Azure partner, C3.ai can integrate more easily into existing enterprise software stacks, improving time-to-value for customers.

Being available on AWS and Google Cloud adds to the company’s accessibility, especially for developers looking for plug-and-play AI tools. These partnerships also expand the platform’s scalability by letting customers run C3 Generative AI models on trusted, secure infrastructure. From a trading perspective, strong ties to hyperscalers reduce execution risk and enhance the platform’s stickiness in enterprise settings. But keep in mind—these partners are also potential competitors, which means C3.ai has to keep innovating to stay relevant.

Government and Defense Contracts

C3.ai’s involvement in U.S. government and defense contracts adds revenue stability and strategic validation for its AI solutions. The Air Force alone accounts for a substantial portion of recent bookings, including a four-year $350 million expansion tied to predictive maintenance systems. PANDA, C3.ai’s AI-enabled decision assistant, is already embedded in military workflows, supporting readiness and cost reduction across aircraft platforms.

Other deployments, such as for the Missile Defense Agency and Department of Energy, reinforce the platform’s utility in mission-critical applications. Federal contracts also tend to be multi-year and resistant to macro downturns, offering a backstop against commercial revenue volatility. For traders looking at revenue durability, this side of the business provides a compelling reason to keep the stock on a watchlist—even if profitability remains a longer-term goal.

Competitive Advantages in Enterprise AI

C3.ai stands out in the enterprise AI space due to its model-driven architecture and low-code development environment, which allows faster deployment and easier customization. This makes it easier for customers to build AI applications without large internal development teams. Compared to more generic platforms, C3.ai’s solutions are purpose-built, with pre-configured modules for oil and gas, healthcare, and manufacturing.

Its cross-industry flexibility, combined with support for hybrid and on-premises deployments, gives it a leg up in regulated and infrastructure-heavy sectors. Many enterprise software companies are still figuring out how to make AI practical—C3.ai already has operational deployments. In trading, I look for companies with defensible tech and execution proof points. C3.ai isn’t perfect, but it’s ahead of the curve in offering usable enterprise AI, not just buzzwords.

Comparison to Other AI SaaS Companies

C3.ai differs from other enterprise AI companies like Palantir, IBM Watson, and DataRobot in a few key ways. While Palantir focuses on data integration and analytics with government-heavy exposure, C3.ai emphasizes prebuilt enterprise applications that can be quickly customized. IBM leans heavily on consulting, which limits its scalability, and DataRobot targets smaller deployments with autoML tools.

C3.ai’s platform is more vertically integrated, supporting everything from data ingestion to application deployment. Its consumption-based model and growing application catalog are designed for large-scale, repeatable use cases across sectors. From a trading standpoint, that means the company could grow faster than peers if its product suite continues to gain traction. But it also means it needs to hit high growth targets consistently to justify its current valuation.

Industry Trends Impacting C3.ai (AI) Stock

C3.ai operates in one of the fastest-evolving sectors in the technology space. Over the past few years, there’s been a sharp increase in enterprise adoption of AI tools, AI-as-a-Service (AIaaS), and shifting regulatory and ethical considerations. 

Growth in Enterprise AI Adoption

Enterprise adoption of artificial intelligence is expanding, and C3.ai is well-positioned to benefit. Companies across sectors are looking to embed AI into operations to improve efficiency and reduce costs. C3.ai’s platform fits this demand by providing AI tools that are scalable, secure, and relatively easy to implement using existing IT infrastructure.

This demand tailwind helps explain why C3.ai saw 25% growth in fiscal 2025 and expects similar momentum in fiscal 2026. The company is also seeing increased interest from sectors like aerospace, pharma, and energy transition. When teaching trading, I always tell people: tailwinds matter, but only if the company can execute. So far, C3.ai is riding the trend—but staying on it will require constant product innovation and clear customer ROI.

AI-as-a-Service Market Expansion

The broader AI-as-a-Service (AIaaS) market is expanding quickly, and C3.ai is competing directly for enterprise mindshare. As more businesses move from proof-of-concept to full deployments, the ability to deliver packaged AI applications becomes a key competitive edge. C3 Generative AI supports this trend by offering modular, scalable tools that reduce deployment time and risk.

With tech giants like Salesforce and Google expanding their own AI offerings, smaller players like C3.ai have to carve out specific niches. The company’s focus on mission-critical applications and vertical solutions helps it avoid direct price wars with hyperscalers. That said, staying relevant in the AIaaS market means constant reinvestment, so don’t expect margins to improve quickly. For traders, this market expansion is a plus—but also a signal to watch operating metrics carefully.

Regulatory and Ethical Considerations in AI

As artificial intelligence becomes more integrated into business operations, regulatory and ethical scrutiny is increasing. For C3.ai, which serves defense and energy sectors, this creates both risks and responsibilities. The company emphasizes secure, auditable AI systems—a necessary stance for serving U.S. government agencies and compliance-heavy industries.

Any AI company operating at the enterprise level will need to show that its algorithms are transparent, fair, and secure. This affects sales cycles and sometimes leads to extended deployment timelines. Traders should note that regulatory overhang could slow down adoption or increase compliance costs, particularly as global standards evolve. Like I teach in every training, always account for external risks—not just what the company can control.

Challenges and Risk Factors Associated with C3.ai (AI) Stock

C3.ai has promise, but the stock comes with real risk. First, it’s highly concentrated: a few customers account for a large part of revenue, and long sales cycles make it hard to predict deal timing. Second, the AI software market is crowded. Competitors from startups to tech giants are pushing hard into enterprise AI, and customer switching costs are still low.

Third, the company’s ability to scale across industries and regions depends on product flexibility and innovation. If it can’t keep updating its platform fast enough, it risks falling behind. Finally, the stock is volatile. Earnings misses, analyst downgrades, or weak contract news can cause big swings. In my trading experience, these kinds of names can offer great reward—but only if you time entries carefully and respect the downside.

The Future Outlook of C3.ai (AI) Stock

C3.ai’s future depends on sustained revenue growth, improved operating leverage, and success in converting pilot projects into recurring contracts. Management expects positive cash flow by fiscal 2027, with revenue hitting $447 million to $485 million in fiscal 2026. That’s a strong growth outlook—if it holds.

The company is clearly in a better place than it was two years ago, with improved metrics, renewed contracts, and expanding partnerships. But the next phase will be about showing consistency. For traders, that means watching quarterly updates closely. Growth-stage software companies either accelerate or get left behind—there’s rarely a middle ground.

Is C3.ai (AI) a Good Stock to Watch?

Yes, C3.ai is a stock worth watching—especially for traders focused on the AI sector. The company is executing better, expanding into new industries, and maintaining strong partnerships with major players. But it’s not profitable yet, and it faces execution risk and competitive pressure.

If you’re trading it, know what you’re playing. This isn’t a blue-chip name. It’s a fast-moving tech company with potential and volatility. That combination can offer strong setups if you’re tracking the story closely, but it can also punish you if you trade on headlines or hype. Stick to your rules, manage risk, and don’t force the trade.

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Key Takeaways

• C3.ai is a software company specializing in enterprise AI applications and low-code generative tools.
• Revenue grew 25% in fiscal 2025, with guidance calling for 15% to 25% growth in fiscal 2026.
• Strategic partnerships with Microsoft and AWS expand its market reach and credibility.
• The business remains unprofitable, with a negative EBITDA and customer concentration risk.
• The stock is volatile but could offer trading opportunities if key metrics continue improving.

This is a market tailor-made for traders who are prepared. AI stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

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Frequently Asked Questions

What Role Does Machine Learning Play in C3.ai’s Business?

C3.ai’s platform is built around advanced machine learning capabilities that help businesses automate tasks, identify patterns, and make data-driven decisions. Its tools support both supervised and unsupervised learning models, making them applicable across diverse industries with complex data needs. These capabilities are central to its competitive edge in delivering scalable AI solutions through prebuilt applications.

What Is C3.ai’s Current Market Cap and How Does It Affect Investor Sentiment?

C3.ai’s market cap currently sits in the mid-cap range, reflecting its position as a growth-stage player on the Nasdaq exchange. While not yet profitable, its valuation is largely driven by forward-looking growth expectations and strategic execution. For investors and traders managing a tech-focused portfolio, market cap plays a key role in assessing volatility, liquidity, and upside potential.

How Do C3.ai’s Financial Results Reflect Its Forecast and Risk of Loss?

Despite strong top-line growth, C3.ai continues to report significant losses, which raises questions about its operating efficiency and financial discipline. Its revenue forecast for fiscal 2026 projects 15% to 25% growth, but turning that into profit remains a challenge. Traders must weigh future expectations against current loss trends when evaluating whether the stock deserves a spot in an active portfolio.

Where Can Investors Find Verified Research and Documentation on C3.ai?

Investors can access C3.ai’s official documentation, research updates, and performance metrics through its SEC filings and quarterly TTM financial reports. These resources offer deeper insights into revenue composition, customer segments, and cash flow trends. Reviewing original filings is something I always teach new traders to prioritize—because it’s where you separate market rumors from verifiable data.