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C3.ai (AI) is a technology company focused on developing and delivering enterprise software solutions related to artificial intelligence (AI). Its customer base includes companies in oil and gas, aerospace and defense, transportation, insurance, financial services, and healthcare.
Incorporated in 2009, initially under the name C3, it changed its name in 2019 to C3.ai and is headquartered in Redwood City, California.
About AI Stock
AI stock gained roughly 25% in 2024, outperforming its benchmark Russell 2000 Index (IWM), which gained 10.75%. The stock had a strong end to 2024 seeing a 40% gain in its last 2 months.
Despite the strong finish, it is having a rough start to 2025, down 11% in the year to date and down 14.2% in the last month.
C3.ai Posts Stellar Results
C3 posted its second-quarter results for its fiscal 2025 on Dec. 9. The company reported a net loss of $65.97 million, translating to a loss of $0.06 on an adjusted per-share basis. This beat analysts’ $0.16-per-adjusted-share estimates. The company’s revenue increased 28.8% year-over-year to $94.34 million, again surpassing analysts’ $91.02 million estimates.
Its adjusted loss from operations came in at $17.16 million, narrower than analysts’ $30.29 million estimate. The technology company ended the quarter with a cash balance of $730.4 million and a free cash flow loss of $39.51 million.
For the ongoing fiscal third quarter, the company expects revenue of $98 million at the midpoint, against analysts’ $97.6 million. Management also raised its full-year revenue guidance to $388 million from $382.5 million at the midpoint.
C3 Partners with McKinsey
C3.ai has penned a strategic partnership with management consultancy firm McKinsey & Company to expand its enterprise AI transformation capabilities. The deal allows McKinsey’s AI prowess from QuantumBlack and C3’s enterprise AI software to improve operational efficiency, enabling advanced growth for their clients.
The deal will allow clients to use enterprise AI and agentic AI allowing C3 and McKinsey to set a new benchmark for innovation at enterprise scale.
“The future of every industry will be shaped by AI. This alliance ensures our clients are not just participants, but leaders in that future. Together with C3 AI, we’re enabling companies to reimagine their operations, unlock new value, and outpace the competition. This is how we help our clients rewire themselves,” said McKinsey & Company Managing Partner Bob Sternfels.
The partnership’s key point of focus will be to increase productivity while improving safety by detecting fraud and managing risks. The two companies will also work on improving product yield and quality and streamlining supply chains.
Should You Buy AI Stock?
It is safe to say that analysts aren’t particularly fond of the company with a consensus “Hold” rating and a mean price target of $36.15, signaling upside potential of just 10.17% from the market rate. The stock is covered by 14 analysts and has received four “Strong Buy” ratings, four “Hold” ratings, two “Moderate Sell” ratings, and four “Strong Sell” ratings.
