C3.ai AI shares are currently overvalued, as suggested by its Value Score of F.
In terms of the forward 12-month Price/Sales, AI is trading at 6.65X, higher than the sector’s 5.78X.
C3.ai is expensive compared with its industry peers Infosys, Stem and Taboola.com, which currently trade at forward 12-month Price/Sales of 3.73X, 0.27X and 0.46X, respectively.
Image Source: Zacks Investment Research
AI shares have lost 32.4% in the year-to-date period compared with the Zacks Computer & Technology sector’s decline of 6% and the Zacks Computers – IT Services industry’s decline of 10.9%. The underperformance can be attributed to macroeconomic uncertainties and stiff competition in the enterprise AI sector.
Image Source: Zacks Investment Research
However, C3.ai is benefiting from an expanding clientele, along with advancements in Enterprise AI and Generative AI offerings.
Can AI maintain its growth trajectory? Let us find out.
C3.ai’s expanding clientele has been noteworthy. In the third quarter of fiscal 2025, the company secured 66 agreements, including 50 pilot projects, representing a 72% year-over-year surge. This reflects a notable increase in demand for its Enterprise AI and Generative AI offerings.
Building on this momentum, in March 2025, C3.ai announced an alliance with PwC to drive enterprise-scale AI-powered business transformation across key industries, such as banking, manufacturing and utilities.
The partnership leverages C3.ai’s advanced AI solutions, including C3 AI Reliability, Anti-Money Laundering and Energy Management, combined with PwC’s deep industry expertise to enhance predictive maintenance, combat financial fraud and improve energy efficiency.
C3.ai has been one of the prominent AI stocks in recent times, thanks to the strong demand for C3 Generative AI solutions and an expanding partner base. In the third quarter of fiscal 2025, AI finalized 47 agreements through its partner network, marking a 74% year-over-year increase.
Partnerships with major players like Microsoft MSFT, Amazon’s AMZN cloud computing platform AWS, and McKinsey QuantumBlack helped accelerate sales cycles, expand global reach and deliver more impactful solutions to clients.
In the third quarter of fiscal 2025, C3.ai and Microsoft closed 28 agreements across nine industries, marking a 460% quarter-over-quarter upsurge. The joint qualified opportunity pipeline skyrocketed more than 244% year over year, with sales cycles shortening by nearly 20% sequentially.
In the same quarter, C3.ai and AWS expanded their partnership to accelerate the adoption of advanced Enterprise AI solutions, emphasizing a strong go-to-market strategy through joint offerings, deeper cloud integration and enhanced AI-driven capabilities for enterprises.
C3.ai’s AI applications became immediately purchasable on Microsoft Azure, AWS and Alphabet’s GOOGL cloud computing platform, Google Cloud, improving accessibility for enterprises. C3.ai also collaborated closely with Google Cloud to enhance AI deployment for enterprise clients.
Story Continues
