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C3.ai, Inc. (AI - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned +0.6%, compared to the Zacks S&P 500 composite's -0.4% change. During this period, the Zacks Computers - IT Services industry, which C3.ai falls in, has gained 4.6%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, C3.ai is expected to post a loss of $0.22 per share, indicating a change of +12% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of -$0.82 for the current fiscal year indicates a year-over-year change of +39.3%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.49 indicates a change of +39.7% from what C3.ai is expected to report a year ago. Over the past month, the estimate has changed -2%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, C3.ai is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of C3.ai, the consensus sales estimate of $53.18 million for the current quarter points to a year-over-year change of -29.2%. The $222.61 million and $245.7 million estimates for the current and next fiscal years indicate changes of -11.1% and +10.4%, respectively.

Last Reported Results and Surprise HistoryC3.ai reported revenues of $52.38 million in the last reported quarter, representing a year-over-year change of -25.4%. EPS of -$0.2 for the same period compares with -$0.37 a year ago.

Compared to the Zacks Consensus Estimate of $51.46 million, the reported revenues represent a surprise of +1.79%. The EPS surprise was +23.08%.

Over the last four quarters, C3.ai surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

C3.ai is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about C3.ai. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Artificial intelligence (AI) has created trillions of dollars' worth of value for some of America's largest organizations over the last few years, but not every company in this booming industry has been a winner. C3.ai (AI +0.48%) stock, for instance, is down 22% in 2026 (as of the market close last Friday, Sept. 4), as investors abandon ship over the company's declining revenue and steep losses.

Last September, C3.ai's founder, Thomas Siebel, stepped down from his role as CEO to focus on his health issues. Since he played a central role in the sales and customer relationship management processes, his departure led to a sharp decline in the company's revenue.

Fortunately, Siebel returned to lead C3.ai in May, and he is determined to get things back on track. Is it time for investors to start buying the stock?

Image source: Getty Images.

A shift from AI applications to critical AI platforms Developing AI software applications from scratch can be extremely expensive, and it requires specialized technical expertise. Not every business has those resources, so they rely on service providers like C3.ai that can deliver turnkey solutions. But C3.ai's business model is changing -- it still has a portfolio of ready-made AI apps, but it's also becoming a platform provider.

The company launched the C3 Agentic AI Platform late last year, which is effectively an intelligent operating system for businesses. It gains a deep understanding of every existing entity, process, relationship, and piece of data within the enterprise, facilitating the creation of powerful agents that can automate tasks and make key operational decisions (with human permission).

One of the newest tools on the C3 Agentic AI Platform is C3 Code, an advanced programming tool that can build software based on instructions provided in plain English. In other words, it gives enterprises the ability to build their own applications at a lightning-fast pace, even if they don't have a team of world-class engineers.

C3.ai's pivot to become a platform provider is very important, because enterprise AI requires a unified whole-of-business approach. Deploying just one application isn't enough for the average enterprise to stay ahead of their competitors anymore; AI needs to be at the core of every process to maximize productivity and value.

Premium Feature

Moneyball Superscore

38/100

Today's Change

(

0.48

%) $

0.05

Current Price

$

10.51

C3.ai expects sales to sink further C3.ai generated $250.3 million in total revenue during its 2026 fiscal year (ended April 30), a 35% decline from the previous year. The company then generated $52.4 million in revenue during its fiscal 2027 first quarter (ended July 31), a 25% year-over-year decline.

These poor results were a direct consequence Siebel's brief departure, but now that he is back on board, C3.ai's performance is expected to improve. Management's latest forecast suggests the company could deliver up to $240 million in revenue during fiscal 2027 overall, representing a much narrower year-over-year decline of 4% from fiscal 2026. Moreover, Siebel believes a return to sales growth could happen within the next two quarters.

C3.ai has completely restructured its sales department and dramatically cut costs to support its turnaround, which were necessary steps to keep its bottom line in check after its net loss soared by 63% to $470.3 million during fiscal 2026. The company still lost $92.8 million during the fiscal 2027 first quarter, but that was a 20% reduction from the year-ago result.

Plus, C3.ai was modestly free cash-flow positive to the tune of $2.1 million during the first quarter, so the bottom line is certainly trending in the right direction.

A beaten-down stock isn't necessarily a cheap stock C3.ai stock currently trades at a price-to-sales (P/S) ratio of 6.5, which is a discount to its five-year average of 9.4. However, because the company's revenue is forecast to shrink during fiscal 2027, its forward P/S ratio is actually higher than its trailing P/S ratio.

AI PS Ratio data by YCharts

In other words, C3.ai is more expensive when valued against its future financial results than it is today, which is precisely why investors typically avoid buying into shrinking businesses -- they tend to destroy shareholder value over time. However, since Siebel believes C3.ai will return to sales growth on a quarterly basis soon, this particular case might be an exception.

During the first quarter, the company experienced a 73% quarter-over-quarter increase in its gross bookings, which usually represent the value of signed contracts for services that will be delivered in the future. Bookings are often a useful predictor of revenue, so Siebel's optimism might be warranted.

With that said, it might be a good idea for investors to wait until C3.ai's sales actually return to growth before buying its stock, in order to minimize potential risks.

UNDP and NEC Sign Memorandum of Understanding on the Use of AI and Other Digital Technologies to Realize a Nature-Positive Society

TOKYO, Sept 7, 2026 - (JCN Newswire) - The United Nations Development Programme (UNDP) and NEC Corporation (NEC) have signed a Memorandum of Understanding (MOU) to promote the conservation of natural capital and responses to climate change through the use of artificial intelligence (AI) and other digital technologies.

This MOU promotes cooperation toward the conservation and restoration of the natural environment and the realization of sustainable local communities by combining UNDP's knowledge and networks in development assistance around the world with NEC's advanced digital technologies, including AI.

In addition to addressing environmental challenges through the use of digital technologies, the parties will also advance assessments and studies aimed at enhancing the resilience of AI and digital infrastructure, as well as local communities, through the use of environmental data.

The two organizations will cooperate in the following areas:

Creation and dissemination of knowledge for assessing and improving the resilience of AI and other digital technologies, digital infrastructure, and local communities based on environmental data.
Examination of and cooperation on the use of digital solutions that support nature-positive and climate-resilient development.
Examination of approaches toward realizing sustainable and resilient international supply chains for Japanese companies, including NEC, through collaboration with local communities.
Joint dissemination of information to promote the use of digital technologies that contribute to biodiversity conservation and climate change measures.
Continuous dialogue and cooperation to create new opportunities for collaboration and advance joint initiatives.
As an initial area of cooperation under this MOU, the two organizations will jointly prepare and disseminate a white paper to assess, based on environmental data, the resilience of AI and digital infrastructure such as data centers, as well as supply chains and surrounding local communities, and to contribute to improving such resilience.

In addition, they will discuss possible forms of collaboration through workshops on data-driven agriculture using CropScope to support climate change adaptation for coffee farmers in Ethiopia. As these initiatives progress, the two organizations will continue to explore new areas of cooperation.

Through this MOU, UNDP and NEC will promote the conservation of natural capital, including biodiversity, and responses to climate change while appropriately and effectively utilizing AI and other digital technologies, thereby contributing to the sustainable development of nature and society.

Marcos Neto, UN Assistant Secretary-General and Director of UNDP's Bureau for Policy and Programme Support

"Artificial intelligence can help address climate and environmental challenges, but developing countries need support to use it sustainably. By combining the United Nations Development Programme's expertise and country presence with NEC Corporation's technology, this partnership will bring solutions closer to communities and scale local impact."

Shinichiro Ide, Corporate SVP, CBXO and Head of the Business Process Transformation Unit, NEC Corporation

"We are very pleased to have entered into this Memorandum of Understanding with UNDP.

AI has tremendous power to collect and process vast amounts of sophisticated information and support human decision-making and action. While NEC has incorporated this potential into management transformation and business operations, we have also accumulated knowledge relating to the evaluation of and decision-making on resilience through the use of environmental data, based on many years of environmental management and practical experience as a business enterprise. We are also taking on the challenge of analyzing complex factors based on the natural environment and social characteristics that differ from region to region, enabling people to make data-driven decisions that contribute to improving the resilience of businesses and local communities. By combining UNDP's knowledge and networks with NEC's practical expertise, technologies, and business foundation, we will create new value and contribute to realizing a sustainable, nature-positive, and climate-resilient society."

About the Related Webinar

As part of the initiatives under this MOU, NEC and the International Institute for Socio-Economic Studies (IISE), an independent think tank of the NEC Group, will hold an online webinar with the cooperation of UNDP.

The webinar will invite Mozaic Earth and LandPrint, award-winning and finalist companies in the "Nature Intelligence for Business Grand Challenge," jointly organized by UNDP, the Taskforce on Nature-related Financial Disclosures (TNFD), and Conservation X Labs. The webinar will introduce the latest initiatives that utilize environmental data, satellite data, and AI to translate nature-related risks and opportunities in agricultural and forestry supply chains into business and investment decisions. It will also discuss the potential for utilizing nature-related data in management decision-making for corporate sustainability, TNFD, procurement, and finance professionals, as well as financial institutions and researchers.

- Date and Time: Thursday, 10 September 2026, 9:00-10:30 (tentative)
- Format: Zoom Webinar (Online)
- Participation Fee: Free
- Organizer: International Institute for Socio-Economic Studies (IISE)
- Cooperation: UNDP
- Planned Speakers: UNDP, NEC, Mozaic Earth, LandPrint, IISE (Moderator)
- Details and Registration: new window https://note.com/nec_iise/n/nd93aa28e5c53 (Japanese text)

Please note that the webinar content, speakers, and schedule are subject to change.

About NEC

The NEC Group leverages technology to create social value and promote a more sustainable world where everyone has the chance to reach their full potential. NEC Corporation was established in 1899. Today, the NEC Group's approximately 110,000 employees utilize world-leading AI, security, and communications technologies to solve the most pressing needs of customers and society.

For more information, please visit https://www.nec.com,

Source: NEC Corporation

Copyright 2026 JCN Newswire . All rights reserved.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

C3.ai, Inc. is undergoing a turnaround led by returning CEO Thomas Siebel, focusing on execution and restructuring sales strategies. Q1 2027 showed progress: bookings up 73% QoQ, federal bookings up 138% YoY, and positive free cash flow of $2.1 million. Non-GAAP gross margin improved to 50% and operating expenses fell sharply after a 40% headcount reduction, but revenue remains down YoY.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--C3.ai, Inc. (“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal first quarter ended July 31, 2026.

“Revenue was $52.4 million, on plan. Free cash flow was positive $2.1 million. Non-GAAP operating loss was $36.2 million, a 33% improvement QoQ. Bookings increased 73% QoQ. Cash balance was $651.1 million, up $76 million QoQ. The Company has done exactly what a disciplined, focused turnaround should do. We restructured Sales. We aligned cash outflows with cash inflows. We instituted rigorous expense control. We installed experienced leadership across the board, and we implemented rigorous management discipline across every line of business.

Revenue has stabilized, free cash flow is positive, operating loss has narrowed, and Forrester Research named C3 AI a leader in Enterprise AI. The plan is working, we are on track with laser-like management discipline to grow revenue, generate cash, attain non-GAAP profitability, maintain technology leadership, and increase customer satisfaction,” said Thomas M. Siebel, Chairman and Chief Executive Officer, C3 AI.

The Company closed 22 agreements including with Heidelberg Materials, Ford Motor Company, Johnson & Johnson, Holcim, Seaspan, the U.S. Department of Agriculture, the Defense Logistics Agency, the U.S. Department of War and the U.S. Marine Corps, among others.

Fiscal First Quarter 2027 Financial Highlights:

Total Revenue was $52.4 million. Subscription Revenue was $49.2 million. Subscription revenue constituted 94% of total revenue. GAAP gross profit was $16.7 million, representing a 32% gross margin. Non-GAAP gross profit was $26.1 million, representing a 50% non-GAAP gross margin. GAAP net loss per share was $(0.60). Non-GAAP net loss per share was $(0.20). Net cash provided by operating activities was $2.1 million. Free Cash Flow was $2.1 million. Cash, cash equivalents, and marketable securities was $651.1 million. Financial Outlook:

The Company’s guidance includes GAAP and non-GAAP financial measures.

The following table summarizes C3 AI’s guidance for the second quarter of fiscal 2027 and full-year fiscal 2027:

(in millions)

Second Quarter Fiscal 2027
Guidance

Full Year Fiscal 2027
Guidance

Total revenue

$51.0 - $55.0

$210.0 - $240.0

Non-GAAP loss from operations

$(34.5) - $(42.5)

$(123.0) - $(155.0)

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP results included in this press release. Our fiscal year ends April 30, and numbers are rounded for presentation purposes.

Conference Call Details

What:

C3 AI Fiscal First Quarter Earnings Call

When:

Wednesday, September 2, 2026

Time:

2:00 p.m. PT / 5:00 p.m. ET

Participant
Registration:

https://register-conf.media-server.com/register/BI959e755eb0fa492089431eec477ad911 (live)

Webcast:

https://edge.media-server.com/mmc/p/5jt6k675/ (live and replay)

Statement Regarding Use of Non-GAAP Financial Measures

The Company reports the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share and non-GAAP expenses. Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share and non-GAAP expenses excludes the effect of restructuring expenses, stock-based compensation expense-related charges and employer payroll tax expense related to employee stock-based compensation. We believe the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods. Free cash flow. We believe free cash flow, a non-GAAP financial measure, is useful in evaluating liquidity and provides information to management and investors about our ability to fund future operating needs and strategic initiatives. We calculate free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software development costs. This non-GAAP financial measure may be different than similarly titled measures used by other companies. Additionally, the utility of free cash flow is further limited as it does not represent the total increase or decrease in our cash balances for a given period. We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release and in our press release dated June 3, 2026 for the reconciliation of GAAP to non-GAAP financial measures.

Other Information

Professional Services Revenue

Our professional services revenue includes service fees and prioritized engineering services. Service fees include revenue from services such as consulting, training, and paid implementation services.

Prioritized engineering services are undertaken when a customer requests that we accelerate the design, development, and delivery of software features and functions that are planned in our future product roadmap. When we agree to this, we negotiate an agreed upon fee to accelerate the development of the software. When the software feature is delivered, it becomes integrated to our core product offering, is available to all subscribers of the underlying software product, and enhances the operation of that product going forward. Such prioritized engineering services result in production-level computer software – compiled code that enhances the functionality of our production products – which is available for our customers to use over the life of their software licenses. Per Accounting Standards Codification (ASC) 606, Prioritized engineering services revenue is recognized as professional services over the period in which the software development is completed.

Total professional services revenue consists of:

Three Months Ended July 31,

2026

2025

(in thousands)

Prioritized engineering services

$

1,760

$

8,663

Service fees

1,446

1,297

Total professional services revenue

$

3,206

$

9,960

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “on track,” “positioned,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding our restructuring plan and the reorganization of our sales, services, and products organizations, our market leadership position, anticipated benefits from our partnerships, our financial outlook for the second quarter of fiscal 2027 and full 2027 fiscal year, our ability to successfully implement a turnaround in our business, our ability to grow revenue, generate cash, attain Non-GAAP profitability, maintain technology leadership, and increase customer satisfaction, our sales and customer opportunity pipeline, including continued growth in the Federal market, the expected benefits of our offerings, and our business strategies, plans, and objectives for future operations. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including our history of losses and ability to achieve and maintain profitability in the future, our historic dependence on a limited number of existing customers that account for a substantial portion of our revenue, our ability to attract new customers and retain existing customers, the ability of our restructured global sales and services organization to achieve desired productivity levels in a reasonable period of time, the impact of return of Tom Siebel as our Chief Executive Officer, and our ability to retain key members of our senior management, market awareness and acceptance of enterprise AI solutions in general and our products in particular, the length and unpredictability of our sales cycles and the time and expense required for our sales efforts. Some of these risks are described in greater detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2026, and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Quarterly Report on Form 10-Q that will be filed for the fiscal quarter ended July 31, 2026, although new and unanticipated risks may arise. The future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations.

About C3.ai, Inc.

C3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 Agentic AI Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications, C3 AI applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally, and C3 Generative AI, a suite of domain-specific generative AI offerings for the enterprise.

  C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended July 31,

2026

2025

Revenue

Subscription

$

49,169

$

60,301

Professional services

3,206

9,960

Total revenue

52,375

70,261

Cost of revenue

Subscription

34,720

41,481

Professional services

986

2,336

Total cost of revenue

35,706

43,817

Gross profit

16,669

26,444

Operating expenses

Sales and marketing

41,611

62,513

Research and development

46,549

64,651

General and administrative

26,079

24,099

Restructuring

698

—

Total operating expenses

114,937

151,263

Loss from operations

(98,268

)

(124,819

)

Interest income

5,957

8,218

Other (expense) income, net

(338

)

132

Loss before provision for income taxes

(92,649

)

(116,469

)

Provision for income taxes

163

300

Net loss

$

(92,812

)

$

(116,769

)

Net loss per share attributable to Class A and Class B common stockholders, basic and diluted

$

(0.60

)

$

(0.86

)

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted

154,999

135,375

C3.AI, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

(Unaudited)

July 31, 2026

April 30, 2026

Assets

Current assets

Cash and cash equivalents

$

136,435

$

66,197

Marketable securities

514,634

509,252

Accounts receivable, net of allowance of $1,099 and $1,065 as of July 31, 2026 and April 30, 2026, respectively

94,568

100,548

Prepaid expenses and other current assets

24,531

31,965

Total current assets

770,168

707,962

Property and equipment, net

63,569

66,904

Goodwill

625

625

Other assets, non-current

40,442

40,782

Total assets

$

874,804

$

816,273

Liabilities and stockholders’ equity

Current liabilities

Accounts payable

$

8,741

$

5,509

Accrued compensation and employee benefits

44,038

48,560

Deferred revenue, current

52,568

34,861

Accrued and other current liabilities

19,775

17,641

Total current liabilities

125,122

106,571

Deferred revenue, non-current

1,106

1,560

Other long-term liabilities

53,680

54,391

Total liabilities

179,908

162,522

Commitments and contingencies

Stockholders’ equity

Class A common stock

156

145

Class B common stock

3

3

Additional paid-in capital

2,637,163

2,502,657

Accumulated other comprehensive loss

(610

)

(50

)

Accumulated deficit

(1,941,816

)

(1,849,004

)

Total stockholders’ equity

694,896

653,751

Total liabilities and stockholders’ equity

$

874,804

$

816,273

C3.AI, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Three Months Ended July 31,

2026

2025

Cash flows from operating activities:

Net loss

$

(92,812

)

$

(116,769

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities

Depreciation and amortization

3,403

3,415

Non-cash operating lease cost

149

88

Stock-based compensation expense

59,233

64,775

Accretion of discounts on marketable securities

(1,305

)

(2,811

)

Other

34

262

Changes in operating assets and liabilities

Accounts receivable

5,946

23,302

Prepaid expenses, other current assets and other assets

7,562

(230

)

Accounts payable

3,083

(2,931

)

Accrued compensation and employee benefits

(2,048

)

3,343

Operating lease liabilities

(1,300

)

2,187

Other liabilities

2,874

(1,538

)

Deferred revenue

17,253

(6,628

)

Net cash provided by (used in) operating activities

2,072

(33,535

)

Cash flows from investing activities:

Purchases of property and equipment

(8

)

(760

)

Purchases of marketable securities

(129,154

)

(206,492

)

Maturities and sales of marketable securities

124,516

156,081

Net cash used in investing activities

(4,646

)

(51,171

)

Cash flows from financing activities:

Proceeds from exercise of Class A common stock options

72,812

1,289

Net cash provided by financing activities

72,812

1,289

Net increase (decrease) in cash, cash equivalents and restricted cash

70,238

(83,417

)

Cash, cash equivalents and restricted cash at beginning of period

78,763

176,924

Cash, cash equivalents and restricted cash at end of period

$

149,001

$

93,507

Cash and cash equivalents

$

136,435

$

80,941

Restricted cash included in other assets, non-current

12,566

12,566

Total cash, cash equivalents and restricted cash

$

149,001

$

93,507

Supplemental disclosure of cash flow information—cash paid for income taxes

$

518

$

452

Supplemental disclosures of non-cash investing and financing activities:

Purchases of property and equipment included in accounts payable and accrued liabilities

$

149

$

201

Right-of-use assets obtained in exchange for lease obligations (including remeasurement of right-of-use assets and lease liabilities due to changes in the timing of receipt of lease incentives)

$

—

$

(166

)

Vesting of early exercised stock options

$

—

$

5

C3.AI, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except percentages)

(Unaudited)

Three Months Ended July 31,

2026

2025

Reconciliation of GAAP gross profit to non-GAAP gross profit:

Gross profit on a GAAP basis

$

16,669

$

26,444

Stock-based compensation expense (1)

8,788

9,290

Employer payroll tax expense related to employee stock-based compensation (2)

635

586

Gross profit on a non-GAAP basis

$

26,092

$

36,320

Gross margin on a GAAP basis

32

%

38

%

Gross margin on a non-GAAP basis

50

%

52

%

Reconciliation of GAAP loss from operations to non-GAAP loss from operations:

Loss from operations on a GAAP basis

$

(98,268

)

$

(124,819

)

Stock-based compensation expense (1)

59,233

64,775

Employer payroll tax expense related to employee stock-based compensation (2)

2,178

2,220

Restructuring (3)

698

—

Loss from operations on a non-GAAP basis

$

(36,159

)

$

(57,824

)

Reconciliation of GAAP net loss per share to non-GAAP net loss per share:

Net loss on a GAAP basis

$

(92,812

)

$

(116,769

)

Stock-based compensation expense (1)

59,233

64,775

Employer payroll tax expense related to employee stock-based compensation (2)

2,178

2,220

Restructuring (3)

698

—

Net loss on a non-GAAP basis

$

(30,703

)

$

(49,774

)

GAAP net loss per share attributable to Class A and Class B common shareholders, basic and diluted

$

(0.60

)

$

(0.86

)

Non-GAAP net loss per share attributable to Class A and Class B common shareholders, basic and diluted

$

(0.20

)

$

(0.37

)

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted

154,999

135,375

Three Months Ended

July 31, 2026

April 30, 2026

July 31, 2025

Reconciliation of GAAP expenses to non-GAAP expenses:

Total cost of revenue

$

35,706

$

40,277

$

43,817

Total operating expenses

114,937

132,481

151,263

GAAP expenses

150,643

172,758

195,080

Stock-based compensation expense (1)

59,233

54,187

64,775

Employer payroll tax expense related to employee stock-based compensation (2)

2,178

1,785

2,220

Restructuring (3)

698

10,828

—

Non-GAAP expenses

$

88,534

$

105,958

$

128,085

Three Months Ended July 31,

2026

2025

Cost of subscription

$

8,524

$

8,622

Cost of professional services

264

668

Sales and marketing

17,592

24,181

Research and development

20,037

19,323

General and administrative

12,816

11,981

Total stock-based compensation expense

$

59,233

$

64,775

Three Months Ended July 31,

2026

2025

Cost of subscription

$

615

$

550

Cost of professional services

20

36

Sales and marketing

573

674

Research and development

700

793

General and administrative

270

167

Total employer payroll tax expense

$

2,178

$

2,220

Reconciliation of free cash flow to the GAAP measure of net cash provided by (used in) operating activities:

The following table below provides a reconciliation of free cash flow to the GAAP measure of net cash provided by (used in) operating activities for the periods presented:

Three Months Ended July 31,

2026

2025

Net cash provided by (used in) operating activities

$

2,072

$

(33,535

)

Less:

Purchases of property and equipment

(8

)

(760

)

Free cash flow

$

2,064

$

(34,295

)

Net cash used in investing activities

$

(4,646

)

$

(51,171

)

Net cash provided by financing activities

$

72,812

$

1,289

C3.ai's Options Anomaly: A Squeeze in the Making?C3.ai NYSE: AI reported first-quarter fiscal 2027 revenue of $52.4 million, above its prior guidance, as the enterprise AI software company said its restructuring efforts, federal-sector momentum and product focus helped improve operating efficiency.

The quarter ended July 31, 2026. Chairman and Chief Executive Officer Tom Siebel, who said he returned to the CEO role three months earlier with a mandate to turn around the business, characterized the company’s prior challenges as execution-related rather than stemming from its technology, market opportunity or balance sheet.

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Is C3.ai Stock Ready to Burn the Bears?“One quarter into the turnaround, I believe the company is on track,” Siebel said. He said the company restructured its sales, product and services organizations, reset its cost structure and established clearer ownership, deadlines and weekly operating reviews.

Revenue, bookings and profitability measures Chief Financial Officer Hitesh Lath said subscription revenue totaled $49.2 million, or 94% of total revenue. Professional services revenue was $3.2 million, including $1.8 million from prioritized engineering services. Combined subscription and prioritized engineering services revenue was $50.9 million, representing 97% of total revenue.

Top 5 MarketRank™ Stocks Backed by Analysts and Big InstitutionsSiebel said bookings grew 73% during the quarter, while federal bookings increased 138% year over year. The company closed 22 enterprise agreements, including agreements with Heidelberg Materials, Johnson & Johnson, Ford Motor Company, Seaspan, Holcim, the U.S. Department of Defense, the Defense Logistics Agency and the U.S. Department of Agriculture.

Non-GAAP gross profit was $26.1 million. Non-GAAP gross margin improved sequentially to 50% from 37% in the prior quarter. Non-GAAP operating loss was $36.2 million, $8.3 million better than the midpoint of guidance. Non-GAAP net loss was $30.7 million, or $0.20 per share. Free cash flow was positive $2.1 million, compared with negative $34.3 million a year earlier and negative $54.8 million in the prior quarter. Lath attributed the improvement in gross margin primarily to cost-reduction actions. He said free cash flow benefited from lower quarterly cash expenses and strong collections. The company ended the quarter with $651.1 million in cash equivalents and marketable securities.

Restructuring and cost reductions The company said its restructuring is nearly complete and is expected to produce about $135 million in annualized cost savings across the business. The program includes an approximately 40% reduction in headcount across organizations, as well as lower non-employee expenses.

Non-GAAP expenses totaled $88.5 million, down nearly $40 million from $128.1 million in the year-ago quarter and down more than $17 million from the preceding quarter, Lath said. Some of the savings are expected to be fully realized beginning in the second half of fiscal 2027.

The company expects non-GAAP gross margin to moderate to the mid-40% range next quarter as it selectively invests in a forward-deployed engineering organization. Siebel said C3 AI has maintained forward-deployed engineers for years and plans to increase near-term investment to help existing customers achieve their desired deployment outcomes.

He added that the company expects its C3 Code product to mitigate the need for such engineering resources over the medium and long term.

Product strategy and federal opportunity Siebel said C3 AI is concentrating its offerings around its agentic AI stack, including the C3 Agentic AI Platform, C3 Generative AI, C3 AI Studio and C3 Code. He described C3 AI Studio as a control plane for developing and operating large-scale enterprise AI applications, while C3 Code is intended to create enterprise AI applications from natural-language prompts.

According to Siebel, C3 Code can aggregate data, build ontologies and pipelines, develop machine-learning models, design a user interface and deliver a working application without manual coding. He said the product remains in the early stages of marketing, but early users have responded favorably.

Siebel also said the company’s strategy is shifting from selling large enterprise AI applications built on its platform toward making application components available for reassembly on demand through the platform or C3 Code.

In the federal market, Siebel said the company sees opportunity both in greenfield projects and in replacing incumbent providers. He cited dissatisfaction among some customers with an unnamed incumbent’s products and business practices, while also pointing to government spending on AI-related technologies in intelligence and defense sectors.

Outlook For the second quarter of fiscal 2027, C3 AI forecast revenue of $51 million to $55 million and a non-GAAP loss from operations of $34.5 million to $42.5 million.

For the full fiscal year, the company guided for revenue of $210 million to $240 million and a non-GAAP operating loss of $123 million to $155 million. Lath said the company expects free cash flow for the remainder of fiscal 2027 to broadly align with its non-GAAP operating-loss guidance range.

Siebel said his primary focus is on establishing consistent quarter-over-quarter revenue growth beginning in the third quarter, generating free cash flow from operations and reaching non-GAAP profitability. “We’re not going to ask the market to underwrite a story,” he said. “Our plan is to deliver results quarter over quarter and let those results speak for themselves.”

About C3.ai (NYSE:AI)C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company's core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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C3.ai (NYSE:AI) posted its fiscal 2027 first-quarter results after Wednesday’s closing bell, beating estimates on the top and bottom lines. Here’s a look at the details inside the report. 

AI stock is moving. Watch the price action here. C3.ai Q1 Details       C3.ai reported quarterly losses of 20 cents per share, which beat the Street estimate for losses of 25 cents, per Benzinga Pro data. 

Quarterly revenue came in at $52.38 million, which beat the analyst consensus of $52.12 million. Subscription revenue was $49.2 million and constituted 94% of total revenue.

“Revenue has stabilized, free cash flow is positive, operating loss has narrowed, and Forrester Research named C3 AI a leader in Enterprise AI,” said Thomas M. Siebel, CEO of C3.ai.

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“The plan is working, we are on track with laser-like management discipline to grow revenue, generate cash, attain non-GAAP profitability, maintain technology leadership and increase customer satisfaction,” Siebel added.

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AI Stock Price: According to data from Benzinga Pro, C3.ai stock was up 1.69% to $10.52 in Wednesday’s extended trading.  

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Cardio Diagnostics Holdings, Inc. (Nasdaq: CDIO), an AI-driven precision cardiovascular medicine company, today announced the release of a new edition of the company’s rural health report, “The State of Rural Hospitals and Cardiovascular Care,” aimed at helping rural healthcare leaders, policymakers, and community-based organizations improve cardiovascular care quality and outcomes in rural areas.

Ongoing Workforce Shortages and Access Challenges

The rural healthcare workforce shortage is significant and pervasive, particularly for specialists in cardiovascular medicine: 46% of U.S. counties have no practicing cardiologist. Rural areas have 39.8 physicians per 100,000 residents (compared to 53.3 physicians per 100,000 in urban areas). The persistent shortage of providers in rural regions translates into longer wait times for appointments, limited availability of specialized treatments, and potential delays in receiving critical care.

Access challenges for rural residents are exacerbated by the digital divide: 28% of rural Americans lack broadband access. Inadequate internet infrastructure hinders the potential of telehealth and remote monitoring technologies to bridge the distance between patients and providers. The combined effects of workforce shortages and lack of access to quality cardiovascular care place rural health organizations under mounting strain.

First published in 2024, Cardio Diagnostics’ State of Rural Hospitals and Cardiovascular Care report has been revised to bring renewed focus to persistent challenges faced by rural hospitals and to provide a detailed model for delivering quality cardiovascular care in rural settings. The update also comes as rural health organizations navigate a volatile landscape, including hospital closures and shifts in federal funding, that demands hospitals re-evaluate their strategies for delivering care.

Rural Patients Face Higher Rates of Cardiovascular Disease

While rural areas are challenged by staffing shortages, limited access to specialists, and inadequate infrastructure, the stakes are particularly high for managing cardiovascular disease (CVD). Rural Americans are more vulnerable to CVD than urban counterparts due to:

Greater geographic isolationLower socioeconomic statusReduced access to preventive careIncreased exposure to cardiovascular risk factorsSmoking rates, for instance, are significantly higher in rural areas (23.3%) compared to urban areas (15.5%). Higher incidence rates place added pressure on rural hospitals to address CVD patient care in their communities while navigating limited budgets and strained resources.

A New Four-Part Model for Delivering Care

The State of Rural Hospitals and Cardiovascular report presents an updated model for organizations seeking to manage CVD in rural areas. This model for delivering high-quality cardiovascular care focuses on early detection and prevention, continuous care management, and personalized interventions through four core areas, including:

Upskilling primary care cliniciansAdvancing cardiovascular care through epigenetic-genetic testingImplementing population-wide strategies to improve community health outcomesIntegrating remote care options in rural communities“Rural communities bear a disproportionate burden of cardiovascular disease, and rural health organizations play a vital role in closing that gap. But doing so requires delivering care in a way that accounts for the constraints faced by these communities,” says Meesha Dogan, Ph.D., CEO and Co-Founder of Cardio Diagnostics. “This report examines the driving factors behind these health disparities and the role of new technologies, from virtual cardiac care to precision-medicine tests, in improving access, strengthening early detection, and delivering more personalized care to rural populations.”

Access the full report here.

About Cardio Diagnostics

Cardio Diagnostics is an artificial intelligence-powered precision cardiovascular medicine company that makes cardiovascular disease prevention, detection, and management more accessible, personalized, and precise. The Company was formed to further develop and commercialize clinical tests by leveraging a proprietary Artificial Intelligence (AI)-driven Integrated Genetic-Epigenetic Engine (“Core Technology”) for cardiovascular disease to become one of the leading medical technology companies for improving prevention, detection, and treatment of cardiovascular disease. For more information, please visit https://cdio.ai/

Forward-Looking Statements

Certain statements and information included in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. When used in this press release, the words or phrases “will”, “will likely result,” “expected to,” “will continue,” “anticipated,” “estimate,” “projected,” “intend,” “goal,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, many of which are beyond the control of the Company. Such uncertainties and risks include but are not limited to, our ability to successfully execute our growth strategy, changes in laws or regulations, economic conditions, and dependence on results as discussed in the Annual Report on Form 10-K for the period ended December 31, 2025, under the heading “Risk Factors” in Part I, Item IA thereof, and other documents filed from time to time with the Securities and Exchange Commission. Such factors could materially adversely affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed within this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260826128912/en/

Atrium Mortgage Investment Co. (TSE:AI – Get Free Report) passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of C$11.82 and traded as low as C$11.50. Atrium Mortgage Investment shares last traded at C$11.52, with a volume of 111,046 shares changing hands.

Analyst Ratings Changes Separately, Fundamental Research set a C$12.82 price target on shares of Atrium Mortgage Investment and gave the company a “buy” rating in a report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Strong Buy” and a consensus target price of C$13.16.

Check Out Our Latest Analysis on AI

Atrium Mortgage Investment Trading Down 0.5% The stock has a market cap of C$556.95 million, a P/E ratio of 11.64 and a beta of 0.70. The company has a current ratio of 3.72, a quick ratio of 102.54 and a debt-to-equity ratio of 55.94. The company has a 50-day moving average price of C$11.86 and a two-hundred day moving average price of C$11.82. Atrium Mortgage Investment Announces Dividend The company also recently disclosed a monthly dividend, which was paid on Wednesday, August 12th. Shareholders of record on Wednesday, August 12th were given a dividend of $0.0775 per share. The ex-dividend date was Friday, July 31st. This represents a c) dividend on an annualized basis and a yield of 8.1%. Atrium Mortgage Investment’s payout ratio is 93.94%.

Atrium Mortgage Investment Company Profile (Get Free Report)

Atrium Mortgage Investment Corp is a non-banking finance company providing residential and commercial mortgages that lends funds in major urban centres in Canada where the stability and liquidity of real estate are high. Its objectives are to provide its shareholders with stable and secure dividends and preserve shareholders’ equity by lending within conservative risk parameters. The company generates its revenue from mortgage interest and fees.

Featured Articles Five stocks we like better than Atrium Mortgage Investment Williams-Sonoma’s Quarter Gave Bulls More Than Just a Beat-and-Raise Alcoa’s Gallium Project Opens a New Door Beyond Aluminum Oura’s $16 Billion IPO Could Put a New Price on Wearable Tech Can Tesla’s Flying Roadster Distract From Its Real Risks? Receive News & Ratings for Atrium Mortgage Investment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Atrium Mortgage Investment and related companies with MarketBeat.com's FREE daily email newsletter.

The upcoming report from C3.ai, Inc. (AI - Free Report) is expected to reveal quarterly loss of -$0.26 per share, indicating an increase of 29.7% compared to the year-ago period. Analysts forecast revenues of $51.46 million, representing a decline of 26.8% year over year.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some C3.ai metrics that Wall Street analysts commonly model and monitor.

Analysts forecast 'Revenue- Professional services' to reach $3.07 million. The estimate indicates a year-over-year change of -69.2%.

Analysts' assessment points toward 'Revenue- Subscription' reaching $48.28 million. The estimate indicates a change of -19.9% from the prior-year quarter.

The consensus estimate for 'Gross margin- Professional services' stands at 51.7%. Compared to the present estimate, the company reported 77.0% in the same quarter last year.

Analysts expect 'Gross margin- Subscription' to come in at 27.9%. Compared to the current estimate, the company reported 31.0% in the same quarter of the previous year.

View all Key Company Metrics for C3.ai here>>>

Shares of C3.ai have experienced a change of +13.9% in the past month compared to the +4.3% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), AI is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

C3.ai, Inc. (AI - Free Report) closed the most recent trading day at $10.11, moving -1.84% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.77%.

Heading into today, shares of the company had gained 26.38% over the past month, outpacing the Computer and Technology sector's gain of 1.04% and the S&P 500's gain of 2.31%.

Investors will be eagerly watching for the performance of C3.ai, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 2, 2026. The company is expected to report EPS of -$0.26, up 29.73% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $51.46 million, reflecting a 26.76% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.82 per share and revenue of $221.58 million, which would represent changes of +39.26% and -11.46%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for C3.ai, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. C3.ai, Inc. is currently a Zacks Rank #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

A former CEO is returning.

*Stock prices used were the afternoon prices of Aug. 19, 2026. The video was published on Aug.21, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Experian®, a global data and technology company, today released its 11th annual Identity and Fraud Report, highlighting how artificial intelligence (AI) is transforming the digital economy while simultaneously creating new opportunities for fraud. The findings point to a growing challenge for businesses: building trust in an economy where both people and AI agents are increasingly participating in digital transactions.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260819776125/en/

Experian® today released its 11th annual Identity and Fraud Report, highlighting how artificial intelligence is transforming the digital economy while simultaneously creating new opportunities for fraud.

The report found 31% of consumers have already used AI tools to shop and transact online, and another 23% would consider doing so. However, confidence drops sharply for higher-stakes decisions with just 21% comfortable relying on AI for completing travel-related purchases and only 17% for financial services decisions. Meanwhile, more than half of people say they’re concerned about AI-enabled scams, underscoring the trust challenges that could shape the next phase of AI adoption.

“AI is transforming digital interactions in ways that are creating both exciting opportunities and new risks,” said Kathleen Peters, Chief Innovation Officer at Experian. “As we move toward a human-not-present era where consumers increasingly rely on AI to help make decisions on their behalf, the organizations that will succeed will be the ones that make trust visible. Establishing identity and trust, whether for a person or an AI agent, is essential to every digital interaction.”

Fraud losses continue to climb

Consumers reported $15.9 billion in fraud losses in 2025, up 27% from the previous year, according to the FTC. The actual losses are likely much higher as many fraud cases go unreported. Experian’s research found that nearly 1 in 5 people suffered personal financial losses from online fraud in the past year, and another 15% say fraud was attempted but prevented. Seventy-two percent of victims say the experience left them feeling more vulnerable online. Phishing scams were the most common consumer fraud incident reported (26%), followed by fake advertising (19%), package delivery scams (16%), credit card theft (16%), unauthorized charges (15%) and fraudulent bank transactions (15%).

Businesses are feeling the impact as well, with 60% reporting fraud losses are somewhat or significantly higher than previous years, and 77% expect fraud management budgets to increase.

AI creates both opportunity and risk

Companies identify AI-generated phishing attacks as their leading AI-related fraud concern (53%), followed by AI-assisted first-party fraud (51%), document forgery (45%), automated bot attacks (40%) and deepfake voice scams (37%).

To combat these threats, businesses are rapidly adopting AI to strengthen defenses. Eighty percent of organizations report using machine learning or generative AI within fraud management environments to help identify suspicious activity, improve identity verification and enhance fraud detection capabilities.

Identity and security remain critical to trust

As digital interactions become more automated, consumers expect both security and convenience. Seventy-one percent say it’s important for businesses to accurately recognize them online, while nearly 50% report greater trust in organizations that can do so without requiring repeated authentication. In addition, 84% say they’re willing to complete additional security steps when needed to prevent fraud.

The findings suggest trust is becoming a competitive differentiator in an AI-driven marketplace. As AI agents play a larger role in digital transactions, companies need trusted ways to verify both the consumer and the digital agent acting on their behalf. To address this challenge, Experian recently launched Experian Agent Trust™, extending its expertise in identity and fraud prevention to help verify not only the person, but also the AI agent acting on their behalf.

Experian’s identity verification and fraud prevention solutions helped clients avoid an estimated $19 billion in fraud losses globally in 2025. To learn more, watch Experian’s 2026 Fraud Trends: Navigating AI and the Future of Digital Trust webinar here.

Methodology: Experian’s Identity and Fraud Report is based on two major surveys conducted in the U.S. with HarrisX in April 2026. The first asked more than 2,000 U.S. consumers about their online interactions and expectations regarding security and customer experience. The second survey asked more than 200 businesses in the U.S. about their strategies for effective fraud management, customer identification and authentication, including investments related to security and customer experience. Companies ranged in size from $10 million to above $1 billion in revenue.

About Experian

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and platforms. We also assist millions of people to realize their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 33 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260819776125/en/

In the latest trading session, C3.ai, Inc. (AI - Free Report) closed at $9.70, marking a -2.32% move from the previous day. This change lagged the S&P 500's 0.52% loss on the day. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.32%.

Shares of the company have appreciated by 12.59% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.99%, and the S&P 500's gain of 3.3%.

Market participants will be closely following the financial results of C3.ai, Inc. in its upcoming release. The company's upcoming EPS is projected at -$0.26, signifying a 29.73% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.46 million, down 26.76% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.82 per share and a revenue of $221.58 million, indicating changes of +39.26% and -11.46%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for C3.ai, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, C3.ai, Inc. is carrying a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 33% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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C3.ai (NYSE:AI | AI Price Prediction) currently trades at $10.18, while Wedbush Securities analyst Dan Ives carries a Street-high price target of $15 on the enterprise AI software company, implying roughly 47% upside from here. That headline number sits far above the broader Wall Street consensus, which has drifted lower after a brutal fiscal 2026.

C3.ai sells the C3 Agentic AI Platform and industry-specific enterprise AI applications, competing for federal, defense, and industrial AI dollars. Founder Thomas Siebel returned as CEO in June and personally bought 6.17 million shares at $11.16, betting his own capital on a turnaround.

A Revenue Collapse the Market Refuses to Look Past Fiscal 2026 revenue landed at $250.27 million, down 35.67% year over year, with Q4 showing revenue of $51.60 million, a 52.5% year-over-year decline. GAAP gross margin collapsed from 62% to 22%, and full-year free cash flow deteriorated to negative $192.14 million.

Siebel called the recent sales performance “unspeakably horrible” and said “sales just fell off the cliff” across the last five quarters. FY2027 revenue guidance of $210 million to $240 million implies further shrinkage before recovery. Shares are off 45.27% over the past year and 24.48% year to date. Securities class actions emerged after the Q1 FY2026 disclosure around Siebel’s earlier health issues.

Why Ives and Wedbush Are Still Betting on a 50% Rebound Ives maintains an Outperform rating with the $15 target, the Street-high across all coverage. His thesis rests on three pillars: C3.ai as an early enterprise pure-play for federal and commercial generative AI adoption, the shift toward consumption-based pricing to lower deployment friction, and a partner-led motion through Microsoft Azure, AWS, and Google Cloud.

Q3 FY2026 bookings from federal, defense, and aerospace grew 134% year over year and reached 55% of total bookings. The joint qualified pipeline with Microsoft grew 146% year over year, and the AWS joint pipeline grew 172%. That aligns with a Pentagon budget request calling for $58.5 billion for AI in FY2027.

Broader Wall Street remains skeptical. Of 14 covering analysts, the breakdown is 0 Strong Buy, 1 Buy, 7 Hold, 3 Sell, and 3 Strong Sell, with an average target of just $8.82, below the current quote. Siebel’s message was blunt: “Game on.”

How C3.ai Stacks Up Against Its AI Software Peers AI software names with real revenue growth have held up while C3.ai has been isolated.

Palantir (NASDAQ:PLTR) trades near $178.65 against a $191.68 target, roughly 7% upside. Q2 revenue climbed 92.8% to $1.94 billion, and 20 Buys against 10 Holds reflect steady enthusiasm.

SoundHound AI (NASDAQ:SOUN) sits near $7.98 with a $12.71 target, implying roughly 59% upside. Six Buys and two Holds, with Q2 revenue up 45% to $61.9 million.

BigBear.ai (NYSE:BBAI) trades near $3.26 against a $4 consensus, or about 23% upside. Coverage is thin at one Buy and two Holds.

Ives’ $15 call on C3.ai represents a wider gap than any peer average, signaling the market treats C3.ai as an execution story rather than a sector story.

The Data Behind a Bearish Consensus and a Bold Outlier C3.ai trades at $10.18 with a $8.82 consensus target across 14 analysts, meaning the average view implies roughly 13% downside. Ives’ $15 target drives the 50% upside narrative.

Shares are down 24.48% year to date while the S&P 500 has gained 14.07%, a staggering relative gap. Beta sits at 2.07, and Polymarket bettors put implied bankruptcy odds by year-end 2026 at 13.5%, down from a month earlier.

My Take: A Deep Value Bet on One Man’s Reputation The bull case strengthens if the Siebel-led restructuring shows quantifiable sales productivity gains within two quarters, federal bookings continue tracking at more than half of total, and Microsoft and AWS partner pipelines convert into recognized revenue. Ives’ $15 target requires that trajectory to materialize before FY2028.

The bear case builds if Q1 FY2027 misses the $50 million to $54 million guide, gross margin fails to recover from 22%, or class action litigation escalates. With free cash flow at negative $192 million and cash burn accelerating, patience has a cost.

The skeptical lean prevails. Siebel’s insider buy and blunt accountability are genuine positives, but the average analyst target sitting below the current price tells you where the weight of evidence rests. This is a turnaround bet, and the market is charging full price to take it.

Contact [email protected] for any questions or corrections.

As enterprises race to adopt artificial intelligence (AI) solutions, investors must choose between specialized tool builders and established platform defenders. Choosing between C3.ai (AI -5.17%) and CrowdStrike (CRWD -0.05%) requires weighing massive growth potential against financial stability.

C3.ai provides a platform for building enterprise-scale AI applications, targeting industries such as energy and defense. CrowdStrike offers a unified security platform designed to stop data breaches using automated threat detection. Both companies sit at the intersection of high-growth software and the evolving demands of modern digital infrastructure.

The case for C3.aiC3.ai sells enterprise AI software designed to help large organizations deploy agentic AI and industry-specific applications. The company focuses heavily on sectors like manufacturing and oil and gas, maintaining a critical relationship with Shell. Customer concentration like this adds a layer of risk to the business, though it provides a stable foundation for testing new generative tools.

In fiscal 2026 (ending in April), revenue fell 35% to $250 million. The company reported a net loss of roughly $470 million during this period. This performance highlights the challenges of transitioning sales models while navigating a shifting landscape for tech stocks globally.

As for its balance sheet, the debt-to-equity ratio is approximately 0.0x, indicating no significant debt. The current ratio, which measures a company's ability to pay short-term obligations with short-term assets, is close to 6.6x. Free cash flow, or the cash left over after paying for operating activities and equipment, was negative $190.7 million.

The case for CrowdStrikeCrowdStrike operates the Falcon platform, a cloud-native solution that protects endpoints, identity, and data for global organizations. It relies on a vast network of partners, such as Grant Thornton Advisors, to deliver its security services. The company recently expanded its reach through a partnership with Cerebras to integrate more advanced security features into its platform.

In fiscal 2026 (ending in January), revenue reached nearly $4.8 billion, a growth of approximately 21.7% year over year. Despite the top-line expansion, the company reported a net loss of roughly $162.5 million, resulting in a net margin of roughly-3.4%. Net margin measures the percentage of revenue that remains as profit after all expenses are paid.

As for its balance sheet, the debt-to-equity ratio is roughly 0.2x. The current ratio is approximately 1.8x, suggesting the company maintains sufficient liquidity to cover its immediate debts.

While net income was negative, CrowdStrike generated positive free cash flow of $1.3 billion last year. However, note that stock-based compensation (SBC) accounted for roughly 68.0% of operating cash flow, inflating reported cash generation, as SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparisonC3.ai faces significant hurdles, including a history of net losses. The company depends heavily on strategic partners like Amazon, Microsoft, and Alphabet to host and distribute its software. It also manages long and unpredictable sales cycles, which can create volatility in quarterly results.

CrowdStrike continues to manage the fallout from the July 19, 2024, service incident, which resulted in litigation and potential brand damage. It faces intense competition from large vendors such as Microsoft, which offer integrated security suites. Furthermore, the company relies on third-party cloud providers, specifically Amazon, for its platform infrastructure.

Valuation comparisonC3.ai appears much cheaper when looking at its P/S ratio, which compares market value to annual revenue. But CrowdStrike’s higher Forward P/E reveals higher growth expectations for the cybersecurity leader.

MetricC3.aiCrowdStrikeForward P/E25.6x174.2xP/S ratio6.2x45.4xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Investors have a clear choice between a relatively small AI software provider reporting significant losses and a cybersecurity leader generating growing free cash flow.

C3.ai reported a 35% decline in revenue last year, prompting management to initiate a restructuring plan to stabilize the business. This reveals a lack of competitiveness in a rapidly growing market for AI services.

Meanwhile, CrowdStrike is showing steadily growing revenue and free cash flow. As more enterprises adopt AI and use cloud services, there is a greater need for strict security measures to protect sensitive data from breaches and other malicious cyber threats.

The main issue in buying CrowdStrike is the high valuation. The stock has more than doubled from its April lows and currently trades at a nosebleed multiple of forward earnings estimates.

Still, given the choice between these two stocks, I would rather invest in a growing industry leader (CrowdStrike) than take a chance on an unprofitable business that is struggling to grow revenue.

C3.ai, Inc. (AI - Free Report) closed the most recent trading day at $10.63, moving +2.21% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 0.6%.

Coming into today, shares of the company had gained 13.54% in the past month. In that same time, the Computer and Technology sector gained 0.32%, while the S&P 500 gained 2.46%.

Investors will be eagerly watching for the performance of C3.ai, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of -$0.26, up 29.73% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $51.46 million, indicating a 26.76% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.82 per share and a revenue of $221.58 million, representing changes of +39.26% and -11.46%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for C3.ai, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. C3.ai, Inc. is currently sporting a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

The enterprise software landscape is shifting as generative artificial intelligence moves from hype to integration. Choosing between a pure-play AI pioneer like C3.ai (AI +0.72%) and an established titan like Salesforce (CRM -0.38%) requires balancing high-growth potential against stable profitability.

C3.ai provides a platform for building enterprise-scale AI applications across various industries, while Salesforce leads the global market for customer relationship management (CRM) software. Although both companies are now leaning heavily into agentic AI to automate business tasks, they offer very different financial profiles and risk levels for everyday investors.

The case for C3.aiC3.ai offers a specialized platform for organizations to build and deploy artificial intelligence applications. The company focuses on the tech stocks sector by serving industries like financial services, telecommunications, and healthcare. It maintains strategic partnerships with major cloud providers such as Microsoft. Since a significant portion of revenue comes from a small group of sales partners, such as Baker Hughes, this reliance adds a layer of risk to the business.

In its 2026 fiscal year (FY) ended April 30, revenue reached $250.3 million, which represented a decrease of 35.7% from the prior year. This revenue contraction contributed to a net loss of $470.4 million for the period. The company reported a negative net margin of 187.9%, indicating that expenses significantly exceeded total sales during this fiscal cycle. This trend highlights the challenges the company faces in reaching consistent profitability.

Based on the April 2026 balance sheet, the current ratio is 6.6x. The current ratio measures a company's ability to pay short-term obligations with assets that can be converted to cash within a year. C3.ai has a debt-to-equity ratio of zero, meaning it carries no significant total debt relative to the value owned by shareholders. Free cash flow, which is the cash a company generates after accounting for capital expenditures, was a negative $190.7 million in FY 2026.

The case for SalesforceSalesforce remains a dominant force in the enterprise software market through its Customer 360 platform and its new Agentforce AI tools. The company has aggressively expanded its capabilities through acquisitions, including the $3.6 billion purchase of Fin to improve its AI automated service offerings. Its customer base is vast, spanning industries from manufacturing to government. Major strategic moves in early 2026 included completing the acquisition of Qualified.com to boost its marketing automation suite.

For FY 2026 ended Jan. 31, Salesforce generated revenue of $41.5 billion, reflecting growth of 9.6% year over year. The company achieved a net income of $7.5 billion, resulting in a net margin of 18%. This indicates that the company is successfully converting a significant portion of its sales into profit after all expenses are paid. Net income grew steadily compared to previous years, supported by a focus on operational discipline.

According to its January 2026 balance sheet, the debt-to-equity ratio is 0.3x. This ratio compares total debt to shareholder equity to show how much a company is using borrowed money to fund its operations. The current ratio is 0.8x, and the company generated a healthy free cash flow of $14.4 billion in FY 2026. Note that stock-based compensation (SBC) represented 23.4% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparisonC3.ai faces substantial financial pressure, having accumulated a deficit of $1.8 billion as of April 2026. The company relies on a limited number of high-value partners, and any failure to renew these deals could materially hurt its top line. It also faces intense competition in the AI software space. Furthermore, the company must navigate complex global regulations regarding data privacy and the EU AI Act.

Salesforce deals with operational risks related to potential security breaches across its vast cloud infrastructure. The integration of large acquisitions like Informatica and Fin presents significant challenges for management. The company also faces stiff competition from Microsoft and various startups that are native to the artificial intelligence era. Additionally, Salesforce carries roughly $6 billion in debt specifically related to its Informatica acquisition, which could impact financial stability during macroeconomic downturns.

Valuation comparisonSalesforce currently trades at a lower valuation multiple than C3.ai when looking at future earnings estimates, suggesting a more conservative price for its current growth.

MetricC3.aiSalesforceForward P/E25.6x13.6xP/S ratio6.2x3.8xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

The rise of artificial intelligence created an opening for C3.ai and Salesforce to capitalize on this rapidly expanding market. At the same time, both experienced share price declines in 2026, creating a potential buy opportunity.

C3.ai’s revenue floundered after CEO Thomas Siebel resigned from the position due to health issues. The company announced his return in June, as it posted fiscal fourth quarter sales of $51.6 million, a substantial drop from the prior year’s $108.7 million. Whether Siebel can turn C3.ai around won’t be known until subsequent earnings reports. This uncertainty and Salesforce’s lower share price valuation point to the CRM giant as the better stock to buy right now.

Salesforce’s stock fell in 2026 due to Wall Street’s concerns that AI automation will take business away from the company. Yet in its fiscal first quarter ended April 30, its revenue rose 13% year over year to $11.1 billion, and this growth suggests its business remains strong amid the AI boom. In fact, annual recurring revenue for its Agentforce AI and Data 360 products hit $3.4 billion in the quarter, up over 200% year over year in a sign of robust customer adoption.

With Salesforce’s business doing well along with its healthier financials while C3.ai is struggling, from my perspective, Salesforce is clearly the better investment.

Ambiq Micro, Inc. (“Ambiq”) (NYSE: AMBQ), a technology leader in ultra-low-power semiconductor solutions for edge AI, today announced financial results for

© Gorodenkoff / Shutterstock.com

Agentic AI software names are moving together this Friday afternoon, and the leaderboard looks like a mirror image of Monday’s session. Palantir (NASDAQ:PLTR | PLTR Price Prediction) stock is surging 10% to $170.76 midday, while UiPath (NYSE:PATH) shares are climbing 7% to $14.93 and C3.ai (NYSE:AI) shares are rallying 5% to $10.43.

The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is up 3% to $102.24, confirming that the bid extends well beyond the three headline names. The rotation caps a notable week for the group, given that C3.ai and UiPath sat out Monday’s initial move higher on Palantir’s Q2 blowout. Could this be the start of a bigger rally for agentic AI stocks?

Bank of America Fuels the Palantir Leg The proximate catalyst for Palantir today is a Bank of America (NYSE:BAC) note reiterating a Buy rating and raising its price target to $255, implying 50% upside. Analysts pointed to Palantir’s AI strategy, expanding U.S. commercial book, deep customer partnerships, outcome-based pricing, and growing role in sovereign AI.

Some of the intraday velocity in Palantir stock also appears to reflect short covering after this week’s strong Q2 2026 report and raised full-year guide. The company has continued to expand its federal and defense footprint, reinforcing the sovereign-AI thesis that Bank of America leaned on.

Palantir Technologies CEO Alex Karp framed the quarter in language that has clearly landed with sell-side desks, stating, “Demand for AI sovereignty has now been unleashed.” That’s the phrase Wall Street is now using to justify higher multiples on the name.

Sympathy Bid for UiPath and C3.ai There’s no materially impactful company-specific news out of UiPath or C3.ai today. Both are rising in sympathy as the agentic-AI cohort re-rates, after being conspicuously absent from Monday’s move.

UiPath has its own credible agentic AI narrative underneath the tape, with CEO Daniel Dines recently asserting that “agentic products are moving from pilot to production, with customers standardizing on UiPath as the orchestration and automation execution layer for their enterprise AI transformation.” C3.ai is a different animal, still deep in a turnaround under returning founder-CEO Thomas Siebel and not yet profitable.

The IGV move suggests the buying is not isolated to these three tickers. The ETF’s 8% one-week gain hints at broad software-sector participation, though its concentrated top-heavy structure means a handful of mega-cap software names typically do most of the work.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palantir didn't make the cut. Grab the names FREE today.

The Valuation Dispersion Is Real Investors piling in today may want to note how wide the quality and valuation spread runs across this trio. Palantir trades at a trailing 12-month P/E ratio of 146.08x, which is priced for near-perfection execution on the sovereign AI thesis.

UiPath, by contrast, carries a far more digestible trailing 12-month P/E ratio of 24.79x, offering exposure to the same secular theme at a fraction of the multiple. C3.ai has no trailing 12-month P/E because it is unprofitable on that time frame, so today’s move is essentially a sentiment trade rather than an earnings-based rerating.

The bull case on Palantir stock is that operational AI, outcome-based pricing, and government mindshare compound faster than the multiple compresses. The bear case is straightforward: at 146.08x trailing earnings, any misstep can trigger sharp drawdowns, and insider selling has been active into strength.

What to Watch Now Traders can watch for whether Palantir stock holds the round-number zone above $170 into Friday’s close, since a soft finish would undercut the Bank of America-driven momentum narrative. Follow-through in UiPath and C3.ai on Monday could help clarify whether today’s move is a genuine group rotation or a one-day sympathy pop.

The IGV tape is the tell. If the software ETF keeps advancing next week, this rally has legs beyond Palantir’s headline.

Given the valuation dispersion, position sizing matters here. Investors sizing new exposure to Palantir stock at these multiples should treat it accordingly. Meanwhile, investors looking for cheaper agentic AI exposure could seek out assets trading at a lower multiple.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palantir didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

In the latest close session, C3.ai, Inc. (AI - Free Report) was down 1.39% at $9.91. The stock's performance was behind the S&P 500's daily loss of 0.17%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, lost 0.83%.

The stock of company has risen by 12.54% in the past month, leading the Computer and Technology sector's gain of 3.01% and the S&P 500's gain of 3.52%.

The investment community will be closely monitoring the performance of C3.ai, Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.26, marking a 29.73% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $51.46 million, indicating a 26.76% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.82 per share and a revenue of $221.58 million, representing changes of +39.26% and -27.92%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for C3.ai, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. C3.ai, Inc. presently features a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

[url="]Cognyte Software Ltd[/url]. (NASDAQ: CGNT) (“Cognyte”), a global leader in investigative analytics software, today announced its membership in the Gl

In the latest trading session, C3.ai, Inc. (AI - Free Report) closed at $9.07, marking a +2.49% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.66%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 2.78%.

Prior to today's trading, shares of the company had lost 6.15% was narrower than the Computer and Technology sector's loss of 7.65% and lagged the S&P 500's loss of 1.49%.

The upcoming earnings release of C3.ai, Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be -$0.26, reflecting a 29.73% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.46 million, down 26.76% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.82 per share and a revenue of $221.58 million, indicating changes of +39.26% and -11.46%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for C3.ai, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, C3.ai, Inc. is carrying a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

C3.ai, Inc. (AI - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this company have returned -6.9% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Computers - IT Services industry, to which C3.ai belongs, has lost 0.9% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, C3.ai is expected to post a loss of $0.26 per share, indicating a change of +29.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of -$0.82 points to a change of +39.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $0.5 indicates a change of +39.8% from what C3.ai is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, C3.ai is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For C3.ai, the consensus sales estimate for the current quarter of $51.46 million indicates a year-over-year change of -26.8%. For the current and next fiscal years, $221.58 million and $240.78 million estimates indicate -11.5% and +8.7% changes, respectively.

Last Reported Results and Surprise HistoryC3.ai reported revenues of $51.6 million in the last reported quarter, representing a year-over-year change of -52.5%. EPS of -$0.33 for the same period compares with -$0.16 a year ago.

Compared to the Zacks Consensus Estimate of $49.75 million, the reported revenues represent a surprise of +3.72%. The EPS surprise was +13.16%.

Over the last four quarters, C3.ai surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

C3.ai is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about C3.ai. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.