Lumida
/AI
⌘K
C3.ai Inc

C3.ai Inc

AI
$10.54USD↑+0.67%+0.07 today

MARKET CAP

1.7B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$10 – $11

52W RANGE

$8
$20

AI Summary

Stalk
Buy NowMedium

Despite a long-term downtrend, the medium-term structure has improved into a Stage 2 advance with an active Lockout Rally driving urgency and higher highs and lows. The lockout dynamics justify immediate participation, targeting shallow pullbacks into the 9- and 20-day EMAs. Overbought conditions and resistance at the 200-day SMA pose primary risks, but the momentum extension supports a Buy Now posture under our speculative framework.

  • ↑Bookings rose 73% YoY in Q1 2027, led by 138% federal bookings growth
  • ↑Generated positive free cash flow of $2.1M and saved $135M annually
  • ↓Reported Q1 operating loss of $36.2M, failing to convert revenue into profit
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The case for & against

Bull & Bear analysis

Bearish

C3.ai, Inc. (NYSE: AI) is a prominent player in the enterprise artificial intelligence application software market, specializing in AI solutions that enable organizations to innovate and reduce operational costs across various sectors, including government, defense, and healthcare. The company is notable for its focus on maximizing operational efficiencies through its advanced AI platform, which addresses a growing demand for AI solutions amid a significant transformation towards automation and data-driven decision-making.

Bull says

  • ↑Bookings rose 73% YoY in Q1 2027, led by 138% federal bookings growth
  • ↑Generated positive free cash flow of $2.1M and saved $135M annually
  • ↑Ended Q1 with $651.1M cash for funding operations and growth
  • ↑Subscription revenue at 94% of total revenue enhances stability
  • ↑High book-to-price ratio and strong liquidity signal growth potential

Bear says

  • ↓Reported Q1 operating loss of $36.2M, failing to convert revenue into profit
  • ↓Substantial stock volatility and elevated short interest indicate investor skepticism
  • ↓Negative earnings yield raises valuation concerns amid unproven growth
  • ↓Reliance on federal contracts risks policy changes and budget cuts
  • ↓Weak profitability factors and narrow margins after restructuring raise execution risk
  • ↓Intense competition in AI market could pressure future bookings

Investment themes with AI

Recent IPOs↓ -2.25%

Companies that recently went public

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Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 09-03-2026neutral

Transcript signals

Bull points

  • the new leadership that we brought into the organization globally in sales and service, in the service organization, in EMEA, in federal, in North America, kind of mid-quarter, caused confusion in the sales process.
  • we have installed new leadership across the board. We have reorganized our sales and service organizations with a tightly integrated, detailed execution plan going forward where everybody knows where they fit, what their job responsibilities are, and we've assured that everybody has the resources to do their job.
  • We have over 131 turnkey enterprise AI applications in the market. I believe we have the highest levels of customer satisfaction as measured by Net Promoter scores in the application software industry.

Bear points

  • the financial results of the first quarter were completely unacceptable and completely unacceptable in virtually every respect.
  • This is the first quarter in which we have missed our revenue guidance. Know that we take that very seriously, and we will take that seriously going forward. Candidly, there is no excuse for the economic results that we delivered in the first quarter.
  • the quarter was dreadful, okay, and now we need to pick ourselves up, test ourselves off, and get on with business, which is exactly what we're going to do.
Read full transcript analysis ›