Why Shares of C3.ai Stock Collapsed In 2025

• C3.AI is seeing declining income contempt the AI revolution.

• Its laminitis and CEO had to discontinue past twelvemonth owed to a aesculapian condition.

• The institution is wildly unprofitable.

• 10 stocks we similar amended than C3.ai ›

Shares of C3.ai (NYSE: AI) fell 61% successful 2025, according to information from S&P Global Market Intelligence. The artificial quality (AI) institution builds customized bundle applications for ample enterprises, and is struggling to vie with the likes of Palantir Technologies and different players successful the space. In 2025, it mislaid its CEO, saw declining revenue, and rising operating losses.

The banal is present down 92% from all-time highs. Here's wherefore C3.ai fell yet again successful 2025.

Spending connected AI bundle is increasing similar gangbusters. C3.ai is failing to payment from this rising tailwind. Last quarter, its gross declined 14% year-over-year to $71 million, with a hefty operating nonaccomplishment of $112 million. The institution is spending a boatload of wealth connected sales, marketing, and merchandise development, but failing to triumph caller lawsuit contracts to thrust income higher.

On apical of unspeakable gross figures, C3.ai laminitis and CEO Thomas Seibel was forced to discontinue owed to a aesculapian information past year, adding further uncertainty to the company. Even though this concern appears tailor-made for the AI gyration -- it adjacent has 'AI' successful its sanction -- determination has been a nonaccomplishment to execute successful the concern applications field.

Compare that to Palantir, which is increasing gross astatine a accelerated clip with expanding nett margins astatine a overmuch larger standard than C3.ai. It is wide what companies are winning the contention for AI endeavor tools, and it is not C3.ai.

When C3.ai made its marketplace debut successful 2021, it had an absurdly precocious price-to-sales ratio (P/S) of 90. That has since fallen owed to the company's semipermanent gross maturation (although that has reversed successful 2025) and the terms collapsing 90% from its highs. As of this writing, C3.ai banal has a P/S of 5.3.

This whitethorn look much palatable, but investors request to inquire whether this institution volition ever crook a profit. Revenue is present moving successful the incorrect absorption contempt a monolithic manufacture tailwind, on with monolithic operating losses. Shares outstanding are up 46% since going public, which volition beryllium a shareholder dilution headwind for semipermanent banal terms returns.

AI is simply a highly sought-after class astatine the moment, but C3.ai falls abbreviated of surviving up to the hype. It is not astonishing to spot the banal down successful 2025, and it should autumn further successful 2026.

Before you bargain banal successful C3.ai, see this: