📊 AI Key Takeaways
Is C3.ai, Inc. (AI) a Good Investment?
C3.ai demonstrates severe fundamental deterioration with massive operating losses (-189.9% margin) and negative free cash flow (-$137.4M) despite 25.3% revenue growth, indicating the company is burning cash unsustainably. The widening gap between gross profit and operating expenses, combined with negative returns on equity and assets, suggests the business model cannot support current cost structure. While balance sheet liquidity remains adequate, the trajectory of losses without path to profitability presents substantial downside risk.
C3.ai is delivering solid top-line growth, but the quality of that growth remains weak because losses and cash burn are still extremely large relative to revenue. The balance sheet is strong, with high liquidity and no long-term debt, but fundamentals do not yet support a more constructive view until operating leverage materially improves.
Why Buy C3.ai, Inc. Stock? AI Key Strengths
- Revenue growth of 25.3% year-over-year demonstrates market demand for AI/enterprise software services
- Strong liquidity position with 6.58x current ratio and $88.8M cash provides runway for operations
- Healthy gross margin of 33.3% indicates underlying product economics are viable at production level
- No long-term debt constrains financial flexibility
- Revenue growth of 25.3% YoY shows continued demand expansion
- Very strong liquidity with 6.58x current and quick ratios
- Debt-free balance sheet and substantial equity base reduce solvency risk
AI Stock Risks: C3.ai, Inc. Investment Risks
- Operating margin of -189.9% with -$354.8M net loss shows operating expenses far exceed revenue generation capacity
- Negative free cash flow of -$137.4M annually is unsustainable and will deplete cash reserves within 1 year
- ROE of -49.3% and ROA of -39.6% demonstrate the business destroys shareholder value with current cost structure
- Widening losses despite revenue growth suggests scaling is increasing costs faster than revenue, indicating broken unit economics
- Operating margin of -189.9% indicates a severely unprofitable cost structure
- Free cash flow margin of -69.1% shows growth is consuming substantial cash
- Net margin of -178.6% and negative ROE/ROA suggest poor capital efficiency
Key Metrics to Watch
- Operating cash flow trend and path to break-even
- Operating expense ratio relative to revenue growth
- Quarterly cash burn rate and months of runway remaining
- Gross margin sustainability and customer acquisition costs
- Operating leverage improvements or continued deterioration
- Operating margin improvement relative to revenue growth
- Free cash flow burn and operating cash flow trend
C3.ai, Inc. (AI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 6.58x current ratio provides a solid financial cushion.
AI Profit Margin, ROE & Profitability Analysis
AI vs Technology Sector: How C3.ai, Inc. Compares
How C3.ai, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is C3.ai, Inc. Stock Overvalued? AI Valuation Analysis 2026
Based on fundamental analysis, C3.ai, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
C3.ai, Inc. Balance Sheet: AI Debt, Cash & Liquidity
AI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: C3.ai, Inc.'s revenue has grown significantly by 112% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.45 indicates the company is currently unprofitable.
AI Revenue Growth, EPS Growth & YoY Performance
AI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $53.3M | -$80.2M | $-0.62 |
| Q2 2026 | $75.1M | -$66.0M | $-0.52 |
| Q1 2026 | $70.3M | -$62.8M | $-0.50 |
| Q3 2025 | $78.4M | -$72.6M | $-0.60 |
| Q2 2025 | $73.2M | -$66.0M | $-0.52 |
| Q1 2025 | $72.4M | -$62.8M | $-0.50 |
| Q3 2024 | $66.7M | -$63.2M | $-0.57 |
| Q2 2024 | $62.4M | -$68.9M | $-0.59 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
C3.ai, Inc. Dividends, Buybacks & Capital Allocation
AI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for C3.ai, Inc. (CIK: 0001577526)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AI
What is the AI rating for AI?
C3.ai, Inc. (AI) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AI's key strengths?
Claude: Revenue growth of 25.3% year-over-year demonstrates market demand for AI/enterprise software services. Strong liquidity position with 6.58x current ratio and $88.8M cash provides runway for operations. ChatGPT: Revenue growth of 25.3% YoY shows continued demand expansion. Very strong liquidity with 6.58x current and quick ratios.
What are the risks of investing in AI?
Claude: Operating margin of -189.9% with -$354.8M net loss shows operating expenses far exceed revenue generation capacity. Negative free cash flow of -$137.4M annually is unsustainable and will deplete cash reserves within 1 year. ChatGPT: Operating margin of -189.9% indicates a severely unprofitable cost structure. Free cash flow margin of -69.1% shows growth is consuming substantial cash.
What is AI's revenue and growth?
C3.ai, Inc. reported revenue of $198.7M.
Does AI pay dividends?
C3.ai, Inc. does not currently pay dividends.
Where can I find AI SEC filings?
Official SEC filings for C3.ai, Inc. (CIK: 0001577526) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AI's EPS?
C3.ai, Inc. has a diluted EPS of $-2.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, C3.ai, Inc. has a SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AI stock overvalued or undervalued?
Valuation metrics for AI: ROE of -49.3% (sector avg: 22%), net margin of -178.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy AI stock in 2026?
Our dual AI analysis gives C3.ai, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AI's free cash flow?
C3.ai, Inc.'s operating cash flow is $-135.8M, with capital expenditures of $1.6M. FCF margin is -69.1%.
How does AI compare to other Technology stocks?
Vs Technology sector averages: Net margin -178.6% (avg: 18%), ROE -49.3% (avg: 22%), current ratio 6.58 (avg: 2.5).