Is C3.ai, Inc. overvalued?

In our latest published analysis dated 2026-05-10, AI looks meaningfully undervalued. The price recorded at analysis is USD 9.87 versus a composite fair-value midpoint of USD 13.1 (range USD 9.80–USD 17.4), implying roughly 33.1% upside to the midpoint at that date.

What is AI's fair value?

Our latest published report, analyzed 2026-05-10, gives AI a composite fair-value range of USD 9.80–USD 17.4, with a midpoint of USD 13.1. The range is triangulated across multiple valuation models and weighted by reliability for C3.ai, Inc.'s archetype; it is a dated research output, not a live price.

Our latest published rating for AI, analyzed 2026-05-10, is Strong Buy with a confidence score of 65/100. C3.ai, Inc. looks meaningfully undervalued at the analysis-date price of USD 9.87 versus a fair-value midpoint of USD 13.1. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for AI?

The top risks our latest published report dated 2026-05-10 flags for C3.ai, Inc. are: Hyperscaler Commoditization; Consumption Pivot Failure; Dilution Spiral.

Our latest published rating for AI, analyzed 2026-05-10, is Strong Buy, with a confidence score of 65/100 and a moat score of 3/10. It reflects the composite fair-value range (USD 9.80–USD 17.4) versus the price recorded at analysis (USD 9.87).

What archetype is AI?

In the latest published report analyzed 2026-05-10, C3.ai, Inc. is classified as a pre-profit stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for AI.

How fast is AI growing revenue?

C3.ai, Inc. (AI)'s revenue growth is reported year-over-year across the most recent five fiscal years, with the deceleration or acceleration curve called out in the numbers-analysis subsection of the parent financials tab.

Is AI's revenue growth slowing?

The deceleration curve is calibrated by archetype: hyper-growth names get a 5-10 percentage-point-per-year glide path, mature compounders converge to GDP-plus-inflation. Visibility-adjusted deceleration is documented in the assumption ledger.

What drives AI's revenue?

Where the company reports segments, the segment composition is included in the financials section. The competitive-moat tab covers the qualitative drivers (pricing power, switching costs, distribution).

Where can I see AI's historical revenue?

The parent financials tab carries five years of standardized revenue history. For the longer-term trend, the report's appendix logs data provenance and the source dataset identifier.

AI revenue trajectory and growth

Latest published researchAnalyzed 2026-05-10; report age: stale; sources: unverified. Age and source freshness are disclosed but do not remove the latest published report from discovery or indexing. Prices and valuation figures are the analysis-date snapshot, not a live quote.

Direct answer

C3.ai is a pre-profit enterprise AI software provider facing a severe near-term revenue contraction. Despite a massive market opportunity in AI, the company's financial model is burdened by exorbitant SBC and negative operating margins. The valuation depends heavily on stabilizing revenue and executing a successful pivot to consumption-based pricing. Fair value range: low $9.80, high $17.4, with mid-point at $13.1.

REVENUE FAQ

AI revenue questions

C3.ai, Inc. (AI)'s revenue growth is reported year-over-year across the most recent five fiscal years, with the deceleration or acceleration curve called out in the numbers-analysis subsection of the parent financials tab.

FAQ

AI — frequently asked questions

In our latest published analysis dated 2026-05-10, AI looks meaningfully undervalued. The price recorded at analysis is USD 9.87 versus a composite fair-value midpoint of USD 13.1 (range USD 9.80–USD 17.4), implying roughly 33.1% upside to the midpoint at that date.

Metric	Current	Trigger threshold
Sequential declines in total customer consumption volume.	Monitor	Deterioration versus the report thesis
Operating margins fail to inflect upward from the negative baseline.	Monitor	Deterioration versus the report thesis
Stock-based compensation remains structurally above 50% of revenue.	Monitor

Line item	2022-04-30	2023-04-30	2024-04-30	2025-04-30	Trend
Revenue	$252.8M	$266.8M+5.5%	$310.6M+16.4%	$389.1M+25.3%	+15.5%
Gross profit	$189.0M	$180.5M	$178.6M	$235.9M	+7.7%
Operating income	$-196.1M	$-290.5M	$-318.3M	$-324.4M	—
Net income	$-192.1M	$-268.8M	$-279.7M	$-288.7M	—
EPS (diluted)	$-1.84	$-2.45	$-2.34	$-2.24	—
EBITDA	$-190.9M	$-284.4M	$-305.6M	$-311.8M	—
R&D	$150.5M	$210.7M	$201.4M	$226.4M	+14.6%
SG&A	$234.6M	$260.3M	$295.5M	$333.9M	+12.5%

AI revenue questions

AI — frequently asked questions

AI C3.ai, Inc. fair value $10–$17

§1 Executive summary

Names readers of AI also follow

§2 Bear case

Hyperscaler Commoditization

Consumption Pivot Failure

Dilution Spiral

§3 Financial history

Income statement — last six periods

Quality scores

Numbers analysis

Read the full analysis — 11 more sections.