C3.ai recently announced a strategic alliance with PwC to drive AI-powered business transformations but saw its share price fall 10% over the past month. This decline comes amid broader market volatility driven by concerns over new tariffs and economic uncertainty, which have affected overall investor sentiment. Despite widespread gains in technology stocks such as Tesla and Alphabet, weakened investor confidence in AI-related stocks and cautious corporate outlooks may have influenced C3.ai’s share performance. The company’s partnership with PwC targets sectors like banking and manufacturing, signaling a focus on growth, while the market faces broader economic pressures.
Be aware that C3.ai is showing 2 weaknesses in our investment analysis and 1 of those is a bit concerning.
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Over the three-year period, C3.ai’s total shareholder return was -13.16%, highlighting challenges in capitalizing on AI industry growth. Compared to the broader market, C3.ai underperformed both the US market and software industry over the past year. The company’s financial performance included continuous net losses, such as a net loss of US$80.2 million reported for Q3 2025 despite revenue growth to US$98.78 million, pointing to ongoing profitability issues.
The strategic alliances C3.ai developed with significant partners such as Microsoft and AWS were aimed at broadening market reach, accelerating revenue growth, and enhancing operational efficiency. However, a class-action lawsuit filed in May 2023 regarding alleged securities laws violations created uncertainty, potentially impacting investor sentiment. Additionally, financial guidance revisions suggest caution, as evidenced by the updated projections for full fiscal year revenue between US$383.9 million and US$393.9 million. These factors collectively influenced C3.ai’s longer-term share price performance.
Click to explore a detailed breakdown of our findings in C3.ai’s financial health report.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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