C3.ai to Announce Q3 Earnings on February 25
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AI?
Source: seekingalpha
- Earnings Expectations: C3.ai is set to announce its Q3 earnings on February 25, with Wall Street expecting an EPS of -$0.29, a staggering 141.7% decline year-over-year, and revenue of $75.64 million, down 23.4% year-over-year, indicating ongoing challenges for the company.
- Merger Talks: The company is in discussions to merge with Automation Anywhere, although it faces deep structural challenges, including concerns over revenue quality and management turnover, which could impact the potential benefits of the merger.
- Profitability Issues: Despite beating EPS and revenue estimates 88% of the time over the past two years, C3.ai continues to report significant losses, with much of its revenue being low-margin and non-recurring, highlighting its fragile profitability.
- Market Performance: C3.ai shares have fallen 27% since the beginning of the year, with Seeking Alpha rating it as a Strong Sell while Wall Street analysts maintain a Hold rating, reflecting a cautious outlook on the company's future performance.
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Analyst Views on AI
Wall Street analysts forecast AI stock price to rise
13 Analyst Rating
4 Buy
6 Hold
3 Sell
Hold
Current: 9.790
Low
18.00
Averages
30.45
High
50.00
Current: 9.790
Low
18.00
Averages
30.45
High
50.00
About AI
C3.ai, Inc. is an enterprise artificial intelligence (AI) application software company. The Company has built a solution that enables its customers to rapidly develop, deploy, and operate enterprise AI applications. It offers families of software solutions, which it collectively refers to as its C3 AI software: The C3 AI Platform, C3 AI Applications, and C3 Generative AI. The C3 AI Platform, its core technology, is a comprehensive, end-to-end application development and runtime environment that is designed to allow its customers to rapidly design, develop, and deploy Enterprise AI applications of any type. Its C3 AI Applications, built using the C3 AI Platform, is a portfolio of pre-built, extensible, industry-specific, and application-specific software-as-a-service offerings (SaaS) Enterprise AI applications that can be rapidly installed and deployed. Its C3 Generative AI combines the utility of large language models, generative AI, reinforcement learning, natural language processing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
C3.ai to Announce Q3 Earnings on February 25
- Earnings Expectations: C3.ai is set to announce its Q3 earnings on February 25, with Wall Street expecting an EPS of -$0.29, a staggering 141.7% decline year-over-year, and revenue of $75.64 million, down 23.4% year-over-year, indicating ongoing challenges for the company.
- Merger Talks: The company is in discussions to merge with Automation Anywhere, although it faces deep structural challenges, including concerns over revenue quality and management turnover, which could impact the potential benefits of the merger.
- Profitability Issues: Despite beating EPS and revenue estimates 88% of the time over the past two years, C3.ai continues to report significant losses, with much of its revenue being low-margin and non-recurring, highlighting its fragile profitability.
- Market Performance: C3.ai shares have fallen 27% since the beginning of the year, with Seeking Alpha rating it as a Strong Sell while Wall Street analysts maintain a Hold rating, reflecting a cautious outlook on the company's future performance.
See More
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- Investor Focus on Events: Attention is on Anthropic's product event expected to unveil new features, while President Trump's State of the Union address may propose new cost-cutting measures, influencing market sentiment.
- Nasdaq Futures Recovery: As of 3:00 AM ET Tuesday, Nasdaq, S&P 500, and Russell 2000 futures rose by 0.2%, and Dow futures increased by 0.1%, indicating signs of market stabilization following a sharp selloff.
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- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
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- Portfolio Strategy: Gardner stresses that investors should adopt an incremental strategy, focusing on cash inflows into the market to avoid significant losses during market volatility, particularly for those nearing retirement who need to manage their assets cautiously.
- Stock Recommendations for the Next Five Years: He recommends six stocks, including TransMedics, which is expected to triple in value over the next 6-7 years, and Aritzia, which shows strong financial management and growth potential in the U.S. market.
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- Partnership Development: C3 AI has established strategic relationships with several major partners, which are expected to enhance its technology application and market penetration; however, the success hinges on the company's ability to execute these partnerships effectively.
- Investor Confidence Rebuilding: In the current market environment, C3 AI must demonstrate stronger execution and financial discipline to rebuild investor confidence, thereby driving sustained increases in its stock price.
See More
C3.ai to Announce Q3 Earnings on February 25
- Earnings Expectations: C3.ai is set to announce its Q3 earnings on February 25, with Wall Street expecting an EPS of -$0.29, a staggering 141.7% decline year-over-year, and revenue of $75.64 million, down 23.4% year-over-year, indicating ongoing challenges for the company.
- Merger Talks: The company is in discussions to merge with Automation Anywhere, although it faces deep structural challenges, including concerns over revenue quality and management turnover, which could impact the potential benefits of the merger.
- Profitability Issues: Despite beating EPS and revenue estimates 88% of the time over the past two years, C3.ai continues to report significant losses, with much of its revenue being low-margin and non-recurring, highlighting its fragile profitability.
- Market Performance: C3.ai shares have fallen 27% since the beginning of the year, with Seeking Alpha rating it as a Strong Sell while Wall Street analysts maintain a Hold rating, reflecting a cautious outlook on the company's future performance.
See More
IBM Faces Largest Drop in 20 Years Amid AI Selloff
- IBM Stock Plunge: IBM experienced its steepest drop since 2000 on Monday due to an AI-driven selloff, raising investor concerns about the company's future demand for cloud computing and AI, which could impact market confidence.
- Investor Focus on Events: Attention is on Anthropic's product event expected to unveil new features, while President Trump's State of the Union address may propose new cost-cutting measures, influencing market sentiment.
- Nasdaq Futures Recovery: As of 3:00 AM ET Tuesday, Nasdaq, S&P 500, and Russell 2000 futures rose by 0.2%, and Dow futures increased by 0.1%, indicating signs of market stabilization following a sharp selloff.
- Jefferies Maintains Rating: Despite IBM's stock decline, Jefferies maintains a 'Buy' rating and a $370 price target, emphasizing that the company's anticipated 're-acceleration' hinges on broader industry demand for cloud and automation technologies.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
Tom Gardner Discusses AI and Investment Strategies
- Rise of AI Native Companies: Tom Gardner emphasizes that future winners will be AI native companies that fully integrate AI into their culture, enabling them to achieve higher productivity with fewer employees, thus gaining a competitive edge.
- Market Indicator Analysis: Gardner utilizes the Potential Growth Indicator and Market View Tool to guide investment decisions, with the former indicating potential market overvaluation and expected annual returns between 8.5% and 9%, while the latter forecasts closer to 10.5%, reflecting the market's complexity.
- Portfolio Strategy: Gardner stresses that investors should adopt an incremental strategy, focusing on cash inflows into the market to avoid significant losses during market volatility, particularly for those nearing retirement who need to manage their assets cautiously.
- Stock Recommendations for the Next Five Years: He recommends six stocks, including TransMedics, which is expected to triple in value over the next 6-7 years, and Aritzia, which shows strong financial management and growth potential in the U.S. market.
See More
French President Celebrates Successful Rocket Launch of 32 Amazon Leo Satellites
- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
C3 AI Faces Investor Confidence Challenge Amid Partnerships
- Federal Support Potential: C3 AI demonstrates significant growth potential tied to federal momentum, yet investors require proof of the company's discipline and execution before stock prices can rebound meaningfully.
- Market Price Analysis: As of February 6, 2026, C3 AI's market prices exhibit volatility, reflecting a cautious market sentiment regarding its future performance, indicating that investor confidence in its long-term value needs strengthening.
- Partnership Development: C3 AI has established strategic relationships with several major partners, which are expected to enhance its technology application and market penetration; however, the success hinges on the company's ability to execute these partnerships effectively.
- Investor Confidence Rebuilding: In the current market environment, C3 AI must demonstrate stronger execution and financial discipline to rebuild investor confidence, thereby driving sustained increases in its stock price.
See More
