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C3.ai's Generative AI Surge: A Catalyst for Fiscal 2026 Upside?
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Key Takeaways
{\"0\":\"C3.ai posted Q4 revenues of $108.7M, up 26% year over year, with 96% from subscriptions and services.\",\"1\":\"Generative AI revenue more than doubled in 2025, with 66 deployments across 16 industries.\",\"2\":\"Management sees 2026 revenue of $447.5M-$484.5M and positive free cash flow by year-end.\"}
C3.ai, Inc. (AI - Free Report) closed fiscal 2025 with strong momentum, positioning its Generative AI and agentic AI platforms as central growth drivers for fiscal 2026. The company reported fiscal fourth-quarter revenues of $108.7 million, up 26% year over year, exceeding estimates, with subscription and prioritized engineering services comprising 96% of total sales.
Generative AI revenue more than doubled in fiscal 2025, fueled by 66 initial production deployments across 16 industries, including notable wins with Bristol-Myers Squibb, Dow, the U.S. Navy, and the USC Shoah Foundation. The latter’s deployment alone is expected to save more than $33 million and cut archival processing time by a decade, underscoring the tangible business and societal value of C3.ai’s solutions.
The company’s partner-driven go-to-market approach—anchored by deep alliances with Microsoft, AWS, Google Cloud, and new collaborations with PwC and McKinsey QuantumBlack—accelerates distribution and adoption. Federal contracts, such as the expanded $450 million U.S. Air Force PANDA program, add a recurring, high-credibility revenue stream.
With 95% of fiscal 2025 bookings tied to AI applications and more than 130 turnkey enterprise AI solutions deployed, C3.ai has differentiated itself from infrastructure and model providers. Management projects fiscal 2026 revenues of $447.5–$484.5 million, with free cash flow turning positive by the fourth quarter of fiscal 2026.
While macro and geopolitical uncertainties could temper near-term results, the Generative AI surge, combined with a $742.7 million cash reserve and expanding vertical reach, positions C3.ai to capture outsized gains as enterprise AI adoption accelerates. If execution holds, fiscal 2026 could mark a significant inflection toward profitability and scale.
Rivals in Generative AI: Palantir and Veritone’s Push for Market Share
In the Generative AI race, C3.ai faces stiff competition from Palantir Technologies Inc. (PLTR - Free Report) and Veritone, Inc. (VERI - Free Report) , both vying for leadership in AI-driven enterprise solutions. Palantir has entrenched itself in government and defense sectors with platforms like Gotham and Foundry, increasingly integrating generative capabilities to enhance decision-making and operational efficiency. Its scale, long-term federal contracts, and growing commercial presence make Palantir a formidable rival for C3.ai’s expanding public sector footprint.
Veritone, while smaller, focuses on AI-powered media, legal, and energy applications. Its aiWARE platform integrates generative AI to automate workflows, offering niche, high-value solutions. Veritone has also been targeting government and regulated industries, encroaching on areas where C3.ai seeks to expand. As enterprise adoption of generative AI accelerates, C3.ai must continue to differentiate through turnkey, cross-industry applications to maintain an edge over both Palantir and Veritone.
AI Stock’s Price Performance & Valuation Trend
Shares of this enterprise AI-application software company have lost 3% in the past three months, but performed better than the Zacks Computers - IT Services industry, as you can see below.
C3.ai Stock’s Price Performance
Image Source: Zacks Investment Research
AI stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-sales (P/S) ratio of 6.15, as evidenced by the chart below.
AI’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Earnings Estimate Trend of AI Stock
The Zacks Consensus Estimate for fiscal 2026 and 2027 loss per share has remained stable in the past 30 days.
The consensus estimate for fiscal 2026 and 2027 sales implies growth of 20.1% and 21.8%, respectively. The same for the company’s fiscal 2026 bottom line is expected to improve from the year-ago loss of 41 cents per share.
Image: Bigstock
C3.ai's Generative AI Surge: A Catalyst for Fiscal 2026 Upside?
Key Takeaways
C3.ai, Inc. (AI - Free Report) closed fiscal 2025 with strong momentum, positioning its Generative AI and agentic AI platforms as central growth drivers for fiscal 2026. The company reported fiscal fourth-quarter revenues of $108.7 million, up 26% year over year, exceeding estimates, with subscription and prioritized engineering services comprising 96% of total sales.
Generative AI revenue more than doubled in fiscal 2025, fueled by 66 initial production deployments across 16 industries, including notable wins with Bristol-Myers Squibb, Dow, the U.S. Navy, and the USC Shoah Foundation. The latter’s deployment alone is expected to save more than $33 million and cut archival processing time by a decade, underscoring the tangible business and societal value of C3.ai’s solutions.
The company’s partner-driven go-to-market approach—anchored by deep alliances with Microsoft, AWS, Google Cloud, and new collaborations with PwC and McKinsey QuantumBlack—accelerates distribution and adoption. Federal contracts, such as the expanded $450 million U.S. Air Force PANDA program, add a recurring, high-credibility revenue stream.
With 95% of fiscal 2025 bookings tied to AI applications and more than 130 turnkey enterprise AI solutions deployed, C3.ai has differentiated itself from infrastructure and model providers. Management projects fiscal 2026 revenues of $447.5–$484.5 million, with free cash flow turning positive by the fourth quarter of fiscal 2026.
While macro and geopolitical uncertainties could temper near-term results, the Generative AI surge, combined with a $742.7 million cash reserve and expanding vertical reach, positions C3.ai to capture outsized gains as enterprise AI adoption accelerates. If execution holds, fiscal 2026 could mark a significant inflection toward profitability and scale.
Rivals in Generative AI: Palantir and Veritone’s Push for Market Share
In the Generative AI race, C3.ai faces stiff competition from Palantir Technologies Inc. (PLTR - Free Report) and Veritone, Inc. (VERI - Free Report) , both vying for leadership in AI-driven enterprise solutions. Palantir has entrenched itself in government and defense sectors with platforms like Gotham and Foundry, increasingly integrating generative capabilities to enhance decision-making and operational efficiency. Its scale, long-term federal contracts, and growing commercial presence make Palantir a formidable rival for C3.ai’s expanding public sector footprint.
Veritone, while smaller, focuses on AI-powered media, legal, and energy applications. Its aiWARE platform integrates generative AI to automate workflows, offering niche, high-value solutions. Veritone has also been targeting government and regulated industries, encroaching on areas where C3.ai seeks to expand. As enterprise adoption of generative AI accelerates, C3.ai must continue to differentiate through turnkey, cross-industry applications to maintain an edge over both Palantir and Veritone.
AI Stock’s Price Performance & Valuation Trend
Shares of this enterprise AI-application software company have lost 3% in the past three months, but performed better than the Zacks Computers - IT Services industry, as you can see below.
C3.ai Stock’s Price Performance
Image Source: Zacks Investment Research
AI stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-sales (P/S) ratio of 6.15, as evidenced by the chart below.
AI’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Earnings Estimate Trend of AI Stock
The Zacks Consensus Estimate for fiscal 2026 and 2027 loss per share has remained stable in the past 30 days.
The consensus estimate for fiscal 2026 and 2027 sales implies growth of 20.1% and 21.8%, respectively. The same for the company’s fiscal 2026 bottom line is expected to improve from the year-ago loss of 41 cents per share.
Image Source: Zacks Investment Research
AI’s Zacks Rank
AI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.