This year, implementing challenges have weighed the shares of this AI software company.
A strong decrease in income and an organizational revision are currently making this company a risky gamble.
The generative AI -Softwaremarkt, however, is in the early growth phases and the solid balance of this company can be useful in his attempt to stabilize the ship.
10 shares that we like more than C3.AI ›
Artificial intelligence (AI) turned out to be a huge growth motor in recent years. Organizations and governments have spent enormous amounts of money on setting up AI infrastructure and integrating AI applications and tools in their business processes and activities to unlock the productivity gain that this technology can deliver.
However, not all companies have been able to get the best out of the proliferation of AI. C3.AI(NYSE: AI) Is such a name. Although it has been selling Enterprise AI software for some time, the C3.AI company did not start.
Let’s see why that is the case.
Image source: Getty images.
C3.AI, founded in 2009, has undergone various Pivots. From offering analyzes and software solutions for energy companies, and then expand to the market for the internet of things in companies and utilities, to finally rebranding as a provider of AI Software Solutions, it seems that C3.AI management has found it difficult to stay consistent over the years.
The company now offers generative AI software solutions, including an agentic AI platform and various sector-specific applications. It also enables its customers to develop custom applications. C3.AI cooperates with Cloud Computing -Giants Microsoft” Alphabet‘s Google, and Amazon To offer his solutions through their cloud computing platforms.
It gets a nice part of his things from these partners. 40 of the 46 agreements that it was concluded in the previous quarter, for example, ran via the partner channel. Moreover, C3.AI management points out that it has built up a solid customer base that includes both commercial and federal customers. But these positives have not really translated into solid growth for the company.
The turnover in the first quarter of the tax 2026 (which ended on July 31) fell nearly 20% to $ 70.3 million year after year. Unequisable, C3.AI did not give guidelines for the entire year. In addition, the tax Q2 turnover guidance is from $ 76 million points to a new fall of 19%on an annual basis. C3.AI founder Thomas Siebel attributes the poor performance to a reorganization of the company’s sales and service staff.
Moreover, Siebel claims that his health problems held him away from actively participating in the sales process, and that may have had a negative influence on the performance of the company. However, this is not the first time that C3.AI had a disruption in his company.
It changed its business model of subscriptions based in consumption-based three years ago. That played a negative influence on the growth process of the company. What is more, C3.AI expected to become a few fiscal basis years ago profitable on the basis of a GAAP, but it attracted guidance with an increase in marketing -related expenditure and product development initiatives.
And now the decision of C3.AI suggests to revise its sales and service companies and to hire a new CEO that is still struggling for consistency in its activities after all these years. So, despite the fact that it works on the flowering AI software market (which is reportedly grows with an annual pace of almost 41%, according to IDC), C3.AI cannot be obtained in any traction.
The management of course notes that the restructuring is now complete, but the outlook for the current quarter clearly indicates that it still needs time to get back on track.
The above story suggests that in all those years C3.AI has not been able to build coherent growth strategy. This year’s financial performance will take a big beating, and not surprisingly, analysts are forced to significantly reduce their growth meter.
AI Revenue estimates for current tax annual data by Ycharts
As such, buying C3.AI shares does not seem to do as a smart thing at the moment, given the difficult times that the company is confronted with. But at the same time, investors can consider adding the AI shares to their watch lists. That is because the net cash position of C3.AI of around $ 650 million means that it has enough firepower to go on a marketing blitz, to make a takeover or to spend more on product development.
The generative AI Softwaremarkt is in the early growth phases, so there is enough time for C3.AI to correct and stabilize his ship. Investors would do well to keep an eye on these troubled shares, given the solid growth potential of the industry in which it is active.
Consider this before you buy shares in C3.AI:
The Motley Fool Stock Advisor Analyst team has just identified what they believe are the 10 best shares For investors to buy now … and C3.AI was not one of them. The 10 shares that made the cut can produce sample returns in the coming years.
Consider when Netflix made this list on December 17, 2004 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 648,369!* Or when Nvidia made this list on April 15, 2005 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 1,089,583!**
Now it is worth mentioning Stock Advisor’s The total average return is 1,060%-a market-changing outperformance compared to 189% for the S&P 500. Do not miss the newest top 10 list, available if you become a member of Inventor.
See the 10 shares »
*Stock Advisor Returns as of September 15, 2025
Harsh Chauhan has no position in one of the aforementioned shares. The Motley Fool has positions and recommends Alphabet, Amazon and Microsoft. The Motley Fool recommends C3.AI and recommends the following options: Lang January 2026 $ 395 calls on Microsoft and short January 2026 $ 405 calls on Microsoft. The Motley Fool has a disclosure policy.
Why you should avoid that these restless AI shares were originally published by the Motley Fool
Sign Up For Daily Newsletter
Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
