C3.ai: A Deep Dive into the Stock's 2025 Decline

C3.ai, Inc. (AI), a leading enterprise AI software company, has experienced a significant decline in its stock price in 2025, with a year-to-date loss of 35.77% as of March 1, 2025. This article explores the primary factors contributing to this decline and compares them to the company's performance in previous years.



1. Analyst Price Targets and Sentiment: Multiple analysts have lowered their price targets for c3.ai's stock, indicating a decrease in their confidence in the company's future performance. For example:
* Northland Securities lowered their price target from $35 to $45.
* DA Davidson lowered their price target from $25 to $40.
* Citizens JMP lowered their price target from $50 to $55.
* KeyBanc lowered their price target from $21 to $29.
* piper sandler lowered their price target from $28 to $42.
* morgan stanley lowered their price target from $30 to $32.
* Canaccord lowered their price target from $30 to $40.

These lowered price targets reflect a shift in analyst sentiment, which may contribute to the stock's decline.

2. Financial Outlook and Profitability Concerns: C3.ai's management no longer anticipates generating positive free cash flow for fiscal year 2025. Additionally, the company guided fiscal year 2025 operating losses to $120.0 million at the midpoint, which is $10 million wider than their previous outlook. These financial concerns may contribute to the stock price decline.
3. Comparison with Previous Years: In the fiscal third quarter of 2025, C3.ai reported revenue growth of 26% year-over-year, with total revenue reaching $98.8 million. While this growth is positive, it may not be enough to offset the financial concerns and lowered price targets mentioned above. In previous years, C3.ai has experienced consistent revenue growth, but the company's stock price has not shown a corresponding increase. For instance, in the fiscal first quarter of 2024, C3.ai reported revenue growth of 21% year-over-year, but the stock price did not significantly improve.



In conclusion, the primary factors contributing to C3.ai's significant stock price decline in 2025 are the lowered price targets by analysts, financial outlook and profitability concerns, and the company's performance compared to previous years. While C3.ai has experienced revenue growth, the stock price has not reflected this growth, indicating that investors may be more focused on the company's financial outlook and profitability concerns.

Important note: Investors are reminded to do their due diligence and not rely on the information provided as financial advice. Consider this article as supplementing your required research. Please always apply independent thinking.