C3.ai (AI) shares slipped 6% on Monday amid investor anxiety ahead of the company’s quarterly earnings scheduled for Wednesday, Feb. 25. Consensus is for this enterprise software firm to lose $0.73 per share in its fiscal Q3, which would mean a nearly 18% decline versus the same quarter last year.
Ahead of the release, AI stock is trading at a 52-week low of $9.79, with a 14-day relative strength index (RSI) at roughly 34, indicating bearish momentum may soon approach exhaustion.

Is C3.ai Stock a Bargain Right Now?
Investors are cautioned against buying the dip in AI shares, as the current market environment presents substantial headwinds for enterprise software firms.
Sentiment has curdled into a “SaaS-pocalypse” amid investor fears that artificial intelligence (AI) could disrupt legacy software providers like C3.ai.
And this internal pressure is now colliding with a volatile macro landscape, including the recent Supreme Court ruling striking down President Donald Trump's emergency tariffs.
These headwinds threaten to inflate operational costs and freeze enterprise spending, which could prove detrimental for a business like C3.ai that’s already grappling with a 20% revenue decline.
C3.ai Shares Remain Expensive To Own
C3.ai stock remains unattractive because the departure of its founder and chief executive, Thomas Siebel, has left a vacuum that new CEO Stephen Ehikian must fill amid a securities class action lawsuit.
Investors are advised to take this transition seriously, as Siebel’s “high-touch” sales style was central to the company’s enterprise deal-making.
Moreover, the AI boom has curiously bypassed C3.ai’s financials; it’s path to profitability remains a puzzle with no clear solution in sight.
In fact, a lack of visibility even forced its management to withdraw its full-year guidance in Sept.
All in all, a persistent cash burn, execution missteps, and a price-to-sales (P/S) multiple that sits at about 4x despite shrinking growth, this artificial intelligence stock looks expensive compared to its profitable peers.
How Wall Street Recommends Playing C3.ai
Wall Street analysts also seem to believe that C3.ai is a falling knife that carries far more risk than reward in 2026.
The consensus rating on AI shares sits at a “Hold,” with price targets as low as $8, signaling potential downside of another 20% from here.

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.