• On July 17, C3.ai formed a new strategic alliance with PwC to expand its Agentic AI business across several major industries, while options activity surged with a very large call volume centered on a $30.50 strike price expiring July 25, 2025.
• Management now views the Agentic AI segment as a key value driver, believing it could be worth more than the company's current market capitalization due to intellectual property and high-profile customer engagements.
• We’ll explore how the PwC partnership and the shift toward Agentic AI could influence C3.ai’s path to long-term growth and value.

Find companies with promising cash flow potential yet trading below their fair value.

C3.ai Investment Narrative Recap

To see value in C3.ai as a shareholder, you need to believe in the potential of Agentic AI and the company's ability to turn innovation and partnerships into substantial revenue growth, while accepting the ongoing challenge of operating losses. The new PwC alliance and recent surge in options activity point to heightened interest, but do not materially change the immediate catalyst: achieving sustained revenue traction through large-scale customer wins. The biggest risk remains the company’s sizable operating losses, which are affecting investor confidence around a path to profitability.

Of the company’s recent partnerships, the expanded alliance with PwC stands out as most relevant in the current context. This collaboration is squarely aimed at bringing Agentic AI to market across major industries and may provide C3.ai with improved access to global enterprise clients, linking directly to the revenue growth catalyst focused on broadening customer reach and accelerating joint sales pipelines.

By contrast, investors should also keep in mind the significant operating losses that continue to challenge C3.ai’s financial outlook, especially as...

Read the full narrative on C3.ai (it's free!)

C3.ai's narrative projects $821.2 million in revenue and $98.9 million in earnings by 2028. This requires 30.8% yearly revenue growth and a $380.8 million earnings increase from current earnings of -$281.9 million.

Uncover how C3.ai's forecasts yield a $31.00 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Ten members of the Simply Wall St Community estimate AI’s fair value across a wide US$14.57 to US$49.80 range. While some project much higher valuations, ongoing operating losses may weigh on future business performance, so consider the varied opinions and dig into several viewpoints yourself.

Explore 10 other fair value estimates on C3.ai - why the stock might be worth as much as 73% more than the current price!

Build Your Own C3.ai Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your C3.ai research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free C3.ai research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate C3.ai's overall financial health at a glance.

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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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