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C3 AI Stock Takes a Hit with Revenue Miss and Downbeat Guidance

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 2/26/2026, 9:19 am ET 2/26/2026, 9:19 am ET | 5 min 5 min read
C3 AI Stock Takes a Hit with Revenue Miss and Downbeat Guidance Thumbnail

C3.ai Inc.’s stocks have been trading down by -24.05% amid investor concerns as companies weigh drastic valuation adjustments.

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Live Update At 09:18:56 EST: On Thursday, February 26, 2026 C3.ai Inc. stock [NYSE: AI] is trending down by -24.05%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

In recent weeks, C3 AI’s financial health has taken center stage as earnings reports revealed troubling figures. The firm reported a sizable third-quarter loss, even wider than earlier forecasts, paired with a substantial revenue miss. Following this, the new CEO outlined an aggressive plan aimed at revitalizing growth and returning to profitability. Despite these efforts, the immediate future looks bumpy.

The company’s forecast for the fourth-quarter revenue stands sharply contrasted with Wall Street’s projections, hinting at a slowed growth rate and necessitating the adjustment of expectations. For perspective, Q4’s anticipated revenue range of $48M to $52M is well below the earlier expected $77.7M, signaling a 32% to 39% shortfall. Moreover, the guidance for fiscal year 2026 projects a revenue of around $246.7M to $250.7M, again trailing behind the consensus figure of $298.7M. Such projections underscore the reality of C3 AI’s arduous journey toward rekindling growth.

Market Reactions

The market has been swift in responding to these not-so-rosy revelations. With Wall Street’s faith in the company’s growth prospects dampened, analysts’ decisions reflect a shift towards prudence. Bank of America recently adjusted the price target to $10 from the previous $14, citing performance concerns, which surely plays into the cautionary stance investors are adopting.

More Breaking News

The trading data for C3 AI’s stock has shown a downward trajectory, especially after the earnings report. Prices fluctuated significantly, with observers noting the stock’s fall to a low of $10.31 recently. Such movements indicate investor apprehension, possibly driven by the uncertainty surrounding the company’s ability to meet the new projections.

Navigating the Red Flags

Analyzing key financial metrics further paints a stark picture of C3 AI’s current standing. The company’s profitability remains deeply challenged, with margins under serious stress—particularly notable is the negative EBIT margin of over 107%. Venture deeper, and the income statement reveals an operating income that sank to -$112.11M, far from garnering the sustainability that stakeholders likely yearn for.

From a valuation perspective, C3 AI’s figures continue to strain, evidenced by a price-to-sales ratio standing at 3.9 and return on assets dipping into negative territory by over 24%. The present metrics depict a company grappling with leveraging assets efficiently while concurrently reeling under burdensome costs.

In the context of financial strength, C3 AI’s current ratio of 6.5 and quick ratio of 6.2 outpace the norm, offering a semblance of liquidity advantage. Nevertheless, the broader financial landscape speaks to a pressing need for reassessment and strategic pivots, particularly as the leadership seeks to inspire regained investor confidence.

Conclusion

C3 AI is amidst a strategic crossroads, grappling with a multifaceted drive to stabilize financial footing and convey a credible roadmap for growth. As new leadership implements restructuring and refocusing maneuvers, the market braces for the outcome of these endeavors on the firm’s valuation and trajectory. Traders, observing the situation, are well aware that the key to navigating these turbulent times is caution and strategic maneuvering. As millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.” For traders, this cautious gaze remains warranted; the path forward is fraught with challenges that demand nuanced navigation and determination to overcome past pitfalls. Predictive bets hinge on C3 AI’s ability to adaptively execute its transformative pursuits in the coming quarters. Traders should remain tuned to the unfolding dynamics as C3 AI charts its course through uncharted waters of innovation and operational efficiency.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”