C3.ai vs Palantir: A Financial Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 09 2026
0mins
Should l Buy AI?
Source: Fool
- C3.ai Revenue Decline: C3.ai reported a revenue of $53.3 million for the quarter ending January 2026, with a net income margin of -250%, indicating severe financial challenges during a leadership transition that could impact its competitive position.
- Palantir Revenue Growth: Palantir achieved approximately $1.4 billion in revenue for the quarter ending December 2025, with a net income margin of 43%, showcasing strong growth momentum in the AI software market and attracting more customer interest.
- Market Performance Comparison: C3.ai's stock fell by 3.36% to $8.48, while Palantir's stock decreased by 7.45% to $130.28, reflecting differing investor expectations regarding the future performance of the two companies.
- Competitive Position Disparity: C3.ai has reported GAAP net losses in every quarter over the past two years, highlighting its competitive disadvantage, whereas Palantir continues to grow, indicating significant potential and strong customer demand in the AI platform market.
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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: 8.650
Low
18.00
Averages
30.45
High
50.00
Current: 8.650
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.
Analysis and Investment Recommendations for AI Stocks
- BigBear.ai Financial Struggles: BigBear.ai's revenue declined from $146 million in 2021 to $128 million in 2025, with net losses widening from $124 million to $294 million, primarily due to the bankruptcy of its largest customer, Virgin Orbit, and increased market competition, raising concerns about its future growth prospects in the AI sector.
- C3.ai's Weak Growth: C3.ai's revenue increased from $183 million to $389 million between fiscal 2022 and 2025, but its net loss expanded from $56 million to $289 million; despite launching new generative AI modules, its reliance on lower-margin services led to a decrease in gross margins, with future revenue expected to drop to $251 million.
- Broadcom's Strong Performance: Broadcom's revenue and adjusted EBITDA grew at CAGRs of 24% and 27% from fiscal 2021 to 2025, with AI chip sales surging 65% to $20 billion in 2025, accounting for 31% of total revenue, indicating robust demand and growth potential in the AI market.
- Future Outlook: Analysts expect Broadcom's revenue and adjusted EBITDA to grow at a 48% CAGR through 2028; despite its enterprise value of $2.1 trillion, it remains an attractive investment option compared to C3.ai and BigBear.ai, trading at 18 times next year's adjusted EBITDA.
See More
C3.ai Q4 Non-GAAP Loss Beats Guidance, CEO Returns
- Earnings Surprise: C3.ai reported a Q4 non-GAAP loss of $54.4 million, outperforming the company's guidance range of $56.0 million to $64.0 million, indicating resilience amid challenging market conditions.
- Revenue Performance: The company generated revenue of $51.6 million, a 52.5% year-over-year decline, yet it exceeded market expectations by $1.47 million, suggesting some level of sustained market demand despite difficulties.
- Executive Change: Effective May 8, 2026, Thomas M. Siebel resumes his role as CEO while continuing as Chairman of the Board, a shift that could influence the company's strategic direction and operational execution.
- Stock Price Reaction: C3.ai shares rose 8% in after-hours trading, reflecting a positive market response to the earnings beat and executive return, potentially boosting investor confidence.
See More
Software Stocks Face Market Repricing
- Market Overreaction: As of April 27, Atlassian's stock has dropped 58% over the past six months, C3.ai down 52%, and SoundHound AI down 55%, indicating an excessive market reaction to perceived threats from AI platforms, prompting investors to flee.
- Impact of AI on Software Industry: The prevailing belief is that generative AI will commoditize the software industry, putting SaaS companies at risk of obsolescence; however, this perspective overlooks the ongoing investments in competitive advantages by these firms.
- Corporate Response Strategies: Atlassian is integrating AI into its Jira and Confluence tools to enhance project management and collaboration, while C3.ai focuses on helping enterprises deploy AI, underscoring its significance in the AI infrastructure landscape.
- Market Opportunities: Despite the bearish sentiment, these software companies are now trading at half their previous valuations, presenting an opportunity for investors to reassess these quality SaaS stocks, particularly SoundHound AI, as a potential investment opportunity.
See More
Market Reaction to Software Stocks Plummeting
- Software Stock Decline: As of April 27, Atlassian's stock has dropped 58% over six months, C3.ai down 52%, and SoundHound AI down 55%, reflecting market fears that all-in-one AI platforms will render traditional software obsolete.
- Market Overreaction: While the consensus suggests generative AI will commoditize the software industry, analysts argue this perspective is overly pessimistic, as the fundamentals of these companies remain intact, with current stock prices reflecting shifts in market sentiment rather than actual declines in business value.
- Investor Fund Rotation: Amidst the allure of AI infrastructure, Micron Technology and Intel saw stock gains of 154% and 130% respectively, while SaaS valuations plummeted, indicating investor anxiety over potential threats from AI.
- Value Investment Opportunity: Despite the market's pessimism towards these software companies, this situation presents investors with a chance to acquire high-quality SaaS stocks at discounted prices, with analysts recommending a reassessment of these undervalued growth stories.
See More
Atrium to Release Q1 2026 Financial Results
- Earnings Release Schedule: Atrium Mortgage Investment Corporation will release its financial results for the quarter ended March 31, 2026, after market close on May 7, 2026, reflecting the company's commitment to transparency and information disclosure.
- Conference Call Invitation: Management will hold a conference call on May 8, 2026, at 9:00 a.m. ET to discuss the financial results, providing an opportunity for investor engagement and enhancing shareholder participation.
- Dividend Reinvestment Plan: Atrium's Dividend Reinvestment Plan allows shareholders to automatically reinvest dividends at a 2% discount to market price, promoting long-term investment growth and demonstrating the company's focus on shareholder interests.
- Non-Bank Lender Positioning: As a non-bank lender specializing in residential and commercial mortgages in major Canadian urban centers, Atrium aims to deliver stable dividends through conservative lending practices, ensuring the safety of shareholder capital.
See More
C3.ai Shares Drop After Executive Stock Sale Amid Weak Financials
- Executive Sell-off Impact: C3.ai's Executive Chairman Thomas M. Siebel sold over $4.1 million in company stock on April 13 and 14, leading to a 1.8% drop in share price during the afternoon session, which heightened investor concerns regarding the company's weak financial performance.
- Declining Financial Performance: The company reported a staggering 46% revenue decline to $53.3 million for its fiscal third quarter, missing its own projections, and subsequently lowered its fiscal year 2026 revenue guidance by approximately $51 million, indicating a troubling 36% negative growth rate attributed to poor sales execution.
- Deteriorating Cash Flow: C3.ai reported a negative free cash flow of $56.2 million and forecasted a 54% year-over-year revenue decline for the fourth quarter, which deepened worries about its financial stability and significantly impacted investor confidence in the company's future.
- Increased Market Volatility: C3.ai's shares have dropped 32.7% since the beginning of the year, currently trading at $9.26 per share, which is 68.3% below its 52-week high of $29.16, reflecting a pessimistic sentiment in the market regarding its future prospects.
See More
Analysis and Investment Recommendations for AI Stocks
- BigBear.ai Financial Struggles: BigBear.ai's revenue declined from $146 million in 2021 to $128 million in 2025, with net losses widening from $124 million to $294 million, primarily due to the bankruptcy of its largest customer, Virgin Orbit, and increased market competition, raising concerns about its future growth prospects in the AI sector.
- C3.ai's Weak Growth: C3.ai's revenue increased from $183 million to $389 million between fiscal 2022 and 2025, but its net loss expanded from $56 million to $289 million; despite launching new generative AI modules, its reliance on lower-margin services led to a decrease in gross margins, with future revenue expected to drop to $251 million.
- Broadcom's Strong Performance: Broadcom's revenue and adjusted EBITDA grew at CAGRs of 24% and 27% from fiscal 2021 to 2025, with AI chip sales surging 65% to $20 billion in 2025, accounting for 31% of total revenue, indicating robust demand and growth potential in the AI market.
- Future Outlook: Analysts expect Broadcom's revenue and adjusted EBITDA to grow at a 48% CAGR through 2028; despite its enterprise value of $2.1 trillion, it remains an attractive investment option compared to C3.ai and BigBear.ai, trading at 18 times next year's adjusted EBITDA.
See More
C3.ai Q4 Non-GAAP Loss Beats Guidance, CEO Returns
- Earnings Surprise: C3.ai reported a Q4 non-GAAP loss of $54.4 million, outperforming the company's guidance range of $56.0 million to $64.0 million, indicating resilience amid challenging market conditions.
- Revenue Performance: The company generated revenue of $51.6 million, a 52.5% year-over-year decline, yet it exceeded market expectations by $1.47 million, suggesting some level of sustained market demand despite difficulties.
- Executive Change: Effective May 8, 2026, Thomas M. Siebel resumes his role as CEO while continuing as Chairman of the Board, a shift that could influence the company's strategic direction and operational execution.
- Stock Price Reaction: C3.ai shares rose 8% in after-hours trading, reflecting a positive market response to the earnings beat and executive return, potentially boosting investor confidence.
See More
Software Stocks Face Market Repricing
- Market Overreaction: As of April 27, Atlassian's stock has dropped 58% over the past six months, C3.ai down 52%, and SoundHound AI down 55%, indicating an excessive market reaction to perceived threats from AI platforms, prompting investors to flee.
- Impact of AI on Software Industry: The prevailing belief is that generative AI will commoditize the software industry, putting SaaS companies at risk of obsolescence; however, this perspective overlooks the ongoing investments in competitive advantages by these firms.
- Corporate Response Strategies: Atlassian is integrating AI into its Jira and Confluence tools to enhance project management and collaboration, while C3.ai focuses on helping enterprises deploy AI, underscoring its significance in the AI infrastructure landscape.
- Market Opportunities: Despite the bearish sentiment, these software companies are now trading at half their previous valuations, presenting an opportunity for investors to reassess these quality SaaS stocks, particularly SoundHound AI, as a potential investment opportunity.
See More
Market Reaction to Software Stocks Plummeting
- Software Stock Decline: As of April 27, Atlassian's stock has dropped 58% over six months, C3.ai down 52%, and SoundHound AI down 55%, reflecting market fears that all-in-one AI platforms will render traditional software obsolete.
- Market Overreaction: While the consensus suggests generative AI will commoditize the software industry, analysts argue this perspective is overly pessimistic, as the fundamentals of these companies remain intact, with current stock prices reflecting shifts in market sentiment rather than actual declines in business value.
- Investor Fund Rotation: Amidst the allure of AI infrastructure, Micron Technology and Intel saw stock gains of 154% and 130% respectively, while SaaS valuations plummeted, indicating investor anxiety over potential threats from AI.
- Value Investment Opportunity: Despite the market's pessimism towards these software companies, this situation presents investors with a chance to acquire high-quality SaaS stocks at discounted prices, with analysts recommending a reassessment of these undervalued growth stories.
See More
Atrium to Release Q1 2026 Financial Results
- Earnings Release Schedule: Atrium Mortgage Investment Corporation will release its financial results for the quarter ended March 31, 2026, after market close on May 7, 2026, reflecting the company's commitment to transparency and information disclosure.
- Conference Call Invitation: Management will hold a conference call on May 8, 2026, at 9:00 a.m. ET to discuss the financial results, providing an opportunity for investor engagement and enhancing shareholder participation.
- Dividend Reinvestment Plan: Atrium's Dividend Reinvestment Plan allows shareholders to automatically reinvest dividends at a 2% discount to market price, promoting long-term investment growth and demonstrating the company's focus on shareholder interests.
- Non-Bank Lender Positioning: As a non-bank lender specializing in residential and commercial mortgages in major Canadian urban centers, Atrium aims to deliver stable dividends through conservative lending practices, ensuring the safety of shareholder capital.
See More
C3.ai Shares Drop After Executive Stock Sale Amid Weak Financials
- Executive Sell-off Impact: C3.ai's Executive Chairman Thomas M. Siebel sold over $4.1 million in company stock on April 13 and 14, leading to a 1.8% drop in share price during the afternoon session, which heightened investor concerns regarding the company's weak financial performance.
- Declining Financial Performance: The company reported a staggering 46% revenue decline to $53.3 million for its fiscal third quarter, missing its own projections, and subsequently lowered its fiscal year 2026 revenue guidance by approximately $51 million, indicating a troubling 36% negative growth rate attributed to poor sales execution.
- Deteriorating Cash Flow: C3.ai reported a negative free cash flow of $56.2 million and forecasted a 54% year-over-year revenue decline for the fourth quarter, which deepened worries about its financial stability and significantly impacted investor confidence in the company's future.
- Increased Market Volatility: C3.ai's shares have dropped 32.7% since the beginning of the year, currently trading at $9.26 per share, which is 68.3% below its 52-week high of $29.16, reflecting a pessimistic sentiment in the market regarding its future prospects.
See More
