Group 1 - A class action securities lawsuit has been filed against C3.ai, Inc. [1] - The lawsuit is being notified by Levi & Korsinsky, LLP to investors in C3.ai [1] - C3.ai is listed on the New York Stock Exchange under the ticker symbol AI [1]

Core Viewpoint - C3.ai, Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its growth and the impact of its CEO's health on the company's performance [3][4]. Company Summary - The class period for the lawsuit is from February 26, 2025, to August 8, 2025 [3]. - Allegations include that C3 AI's management provided overly positive statements while concealing material adverse facts about the company's growth potential and the CEO's health issues [3]. - On August 8, 2025, C3 AI announced disappointing preliminary financial results for Q1 of fiscal 2026 and reduced its revenue guidance for the full fiscal year 2026, attributing this to "the reorganization with new leadership" and the CEO's health [3]. - Following this announcement, C3 AI's stock price dropped from $22.13 per share to $16.47 per share, a decline of approximately 25.58% in just one day [3]. Next Steps for Shareholders - Shareholders who purchased shares during the specified class period are encouraged to register for the class action by October 21, 2025 [4]. - Registration allows shareholders to receive updates on the case and does not involve any cost or obligation [4]. Legal Firm Information - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [5].

Core Insights - The article compares C3.ai and Microsoft Corporation in the context of the AI market, highlighting the strengths and weaknesses of each company in terms of growth potential, stability, and scalability [1][2]. Group 1: C3.ai Overview - C3.ai has established a unique position in the enterprise AI market with its Agentic AI platform and over 130 applications tailored for various industries, demonstrating real operational value through major customers like Nucor and the U.S. Army [3]. - Approximately 90% of recent deals for C3.ai are partner-led, primarily through major platforms like Microsoft Azure, AWS, and Google Cloud, allowing access to large distribution channels without extensive direct sales efforts [4]. - The Strategic Integrator Program enables partners to build solutions on C3.ai's platform, potentially expanding adoption at lower costs [5]. - C3.ai holds over $700 million in cash and equivalents, providing a financial cushion to address sales execution issues and invest in growth [6]. Group 2: C3.ai Challenges - C3.ai's revenues fell nearly 19% year over year in the latest quarter, marking its first miss since going public, attributed to weak sales execution and organizational disruption [7]. - The gross margin decreased to 52% due to more costly initial production deployments, with a non-GAAP operating loss of nearly $58 million and over $30 million in free cash flow burned [8]. - A significant portion of C3.ai's production deployments has not transitioned into recurring revenue streams, raising concerns about deal conversion and reliance on partner-led sales [9]. Group 3: Microsoft Overview - Microsoft has shown strong momentum in cloud and AI, with Azure generating over $75 billion in annual revenues, a 34% increase year over year, supported by extensive infrastructure investments [10]. - Microsoft reported $281 billion in revenues and $128 billion in operating income, both rising at double-digit rates, with cloud revenues reaching $168 billion, up 23% [16]. - The Copilot suite has gained rapid adoption, with Microsoft 365 Copilot reaching over 100 million monthly active users, indicating strong customer engagement [13]. - Microsoft Fabric, its analytics platform, grew 55% year over year, positioning the company as a critical provider of data infrastructure for AI applications [14]. Group 4: Microsoft Competitive Advantage - Microsoft's partnerships with OpenAI and Atom Computing enhance its technological position within the AI ecosystem [15]. - The company has a free cash flow of $25.6 billion in a single quarter, allowing for reinvestment in infrastructure and innovation while returning capital to shareholders [17]. - Microsoft has gained 16.3% in stock value over the past year, contrasting with C3.ai's decline of 27.1%, reflecting diverging investor confidence [11][18]. Group 5: Valuation and Projections - C3.ai is trading at a forward price-to-sales ratio of 7.39X, below its three-year median of 8.32X, while Microsoft's ratio is at 11.44X, above its three-year median of 10.72X [20]. - The Zacks Consensus Estimate for C3.ai's fiscal 2026 loss per share has widened to $1.33, while Microsoft's earnings per share estimates have increased for the same period [23][25]. Group 6: Investment Outlook - Microsoft presents a stronger investment case with a comprehensive AI ecosystem, consistent profitability, and strong customer adoption, making it a more reliable choice for investors [27]. - C3.ai, while having promising technology, faces execution hurdles and widening losses, suggesting a cautious approach for investors until stability is demonstrated [27].

Core Viewpoint - Investors in C3.ai, Inc. have the opportunity to lead a securities fraud class action lawsuit due to alleged misleading statements regarding the company's growth and the health of its CEO [1][2]. Summary by Relevant Sections Lawsuit Details - The lawsuit claims that from February 26, 2025, to August 8, 2025, C3.ai's management failed to disclose critical information, including the over-reliance on the CEO's health and effectiveness [2]. - Allegations include that the optimistic reports on growth, earnings potential, and margins were not reflective of the actual situation, as the CEO had not sufficiently recovered to fulfill his role [2]. Participation Information - Investors who suffered losses related to C3.ai are encouraged to participate in the lawsuit before the lead plaintiff deadline of October 21, 2025 [2]. - Interested parties can contact The Law Offices of Frank R. Cruz for more information or to participate in the class action [3][4].

Core Insights - C3.ai, Inc. (AI) reported a weak start to fiscal 2026 with first-quarter revenues of $70.3 million, a decline of 19% year over year, primarily due to softer demand for demonstration licenses and disruptions from organizational changes [1][8] Revenue Breakdown - Subscription revenues were $60.3 million, making up 86% of total sales, indicating the stickiness of long-term contracts [2] - Demonstration licenses saw a significant decline of $15.9 million sequentially, which pressured overall revenue [2][8] - Professional services contributed $10 million, mainly from prioritized engineering services, but this was not enough to offset the revenue decline [3] Customer and Partner Activity - The company signed 28 new initial production deployments (IPDs) in the quarter, totaling 374, with 266 still active [4] - Approximately 90% of deals were partner-led, highlighting the importance of alliances with major cloud providers like Microsoft Azure, AWS, and Google Cloud [4] - Notable enterprise-scale wins with companies such as Nucor, Qemetica, and HII demonstrate the platform's applicability across various sectors [4] Future Guidance - Management expects fiscal second-quarter revenues to range from $72 million to $80 million, indicating a modest sequential improvement [5] - Despite near-term pressures from execution missteps and reliance on pilot-phase deployments, strong partner momentum and a growing pipeline of IPDs could stabilize revenue as fiscal 2026 progresses [5] Stock Performance and Valuation - C3.ai shares have declined 27.6% over the past three months, while the industry average fell by 7.4% [6] - The stock is currently trading at a forward 12-month price-to-sales (P/S) multiple of 7.50, significantly below the industry average of 17.10, suggesting an attractive investment opportunity [9] Earnings Estimates - The Zacks Consensus Estimate for C3.ai's fiscal 2026 loss per share has widened from 37 cents to $1.33 over the past 60 days [10] - Projections indicate a 224.4% fall in fiscal 2026 earnings, contrasting with expected growth for industry peers like Leidos, Vertiv, and Draganfly [13]

Core Viewpoint - C3.ai has appointed a new CEO, Stephen Ehikian, amid struggles with stock performance and disappointing financial results, raising questions about the company's future growth prospects [1][2][4]. Company Leadership Change - The outgoing CEO and founder, Thomas Siebel, stepped down due to health issues, which surprised investors and added to the uncertainty surrounding the stock [2][8]. - Stephen Ehikian, the new CEO, has a strong background in technology, having previously contributed to companies like RelateIQ and Airkit.ai, which were acquired by Salesforce [4][5]. Financial Performance - C3.ai reported a significant decline in sales, totaling $70.3 million for the fiscal first quarter of 2026, representing a nearly 20% year-over-year decrease [7]. - The company's previous projections indicated quarterly revenue exceeding $100 million, highlighting the sharp decline in performance [9]. Future Outlook - The transition to new leadership is seen as a potential turning point for C3.ai, with hopes that the new CEO can improve the company's financial situation and stock performance [6][8].

Core Insights - C3.ai is struggling to capitalize on the growth of the AI market despite being in the enterprise AI software business for several years [2][10] - The company has faced executional missteps and inconsistent business strategies, leading to poor financial performance [4][12] Company Performance - C3.ai's revenue for the first quarter of fiscal 2026 dropped nearly 20% year-over-year to $70.3 million, with a projected fiscal Q2 revenue of $76 million indicating another 19% year-over-year decline [7][10] - The company has not provided full-year guidance, reflecting uncertainty in its financial outlook [7][10] Business Strategy - C3.ai has undergone multiple pivots in its business model, including a shift from subscription-based to consumption-based revenue three years ago, which negatively impacted growth [9][10] - The company has partnered with major cloud computing firms like Microsoft, Google, and Amazon, with 40 out of 46 agreements in the last quarter coming through these partners [5][6] Management and Restructuring - C3.ai's founder, Thomas Siebel, cited health issues and a reorganization of sales and service personnel as factors contributing to the company's poor performance [8][10] - The company has completed a restructuring of its sales and service operations and is in the process of hiring a new CEO, indicating ongoing challenges in achieving operational consistency [10][11] Market Potential - The generative AI software market is experiencing significant growth, reportedly at an annual pace of almost 41%, providing a potential opportunity for C3.ai to recover [10] - C3.ai's net cash position of approximately $650 million offers the company the ability to invest in marketing, acquisitions, or product development [14][15]

Core Viewpoint - C3.ai, Inc. is facing challenges in visibility regarding FY27 growth, with UBS maintaining a Neutral rating and raising the price target to $17.00 from $16.00, while projecting a 16.5% growth rate [1][5] Group 1: Financial Performance - The company's Q1 weakness is attributed to execution failures on several large deals rather than widespread customer weakness [2][5] - The FY26 revenue framework is set at $290-300 million, reflecting a conservative approach, but the estimate remains unchanged due to uncertainties such as a significant Q1 miss, a new CEO, and go-to-market changes [3][5] Group 2: Management and Strategy - The new CFO has not yet finalized an overhaul plan, which raises concerns about potential disruptions in the upcoming quarters [4][5] - The new CEO's lack of a finalized plan is seen as critical for determining the company's performance in the second half of FY26 and FY27 [5]

Core Viewpoint - A class action securities lawsuit has been filed against C3.ai, Inc. due to alleged securities fraud impacting investors between February 26, 2025, and August 8, 2025 [1][2] Group 1: Lawsuit Details - The lawsuit claims that C3.ai's management made misleading statements about the company's growth while concealing adverse facts, particularly regarding the health of its CEO, which affected the company's ability to close deals [2] - On August 8, 2025, C3.ai announced disappointing preliminary financial results for Q1 of fiscal 2026 and lowered its revenue guidance for the full fiscal year 2026, attributing these issues to "the reorganization with new leadership" and the CEO's health [2] - Following the announcement, C3.ai's stock price dropped from $22.13 per share on August 8, 2025, to $16.47 per share on August 11, 2025, marking a decline of approximately 25.58% in just one day [2] Group 2: Next Steps for Investors - Investors who suffered losses in C3.ai during the specified timeframe have until October 21, 2025, to request the Court to appoint them as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees, and there is no obligation to participate [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4]

Core Insights - The article compares two AI companies, SoundHound AI and C3.ai, highlighting their contrasting financial trajectories and execution challenges amid the AI boom [1][2]. Group 1: SoundHound AI - SoundHound is experiencing rapid growth in voice AI, with its platform deployed in over 14,000 restaurant locations and significant automotive partnerships, including a recent win in China [3][4]. - The company reported a 217% year-over-year revenue increase in Q2 2025, reaching $42.7 million, and raised its full-year revenue guidance to $160–$178 million, nearly doubling 2024's revenue [5][9]. - SoundHound has diversified its client base, with no single client contributing over 10% of revenues, and strategic acquisitions are enhancing its product offerings and revenue streams [4][8]. - Despite strong revenue growth, profitability is under pressure, with GAAP gross margin at 39% and adjusted EBITDA showing a loss of $14.3 million due to rising operating expenses [6][8]. - The company maintains a solid balance sheet with approximately $230 million in cash and no debt, allowing for continued investment in growth initiatives [7][8]. - SoundHound's stock has increased by about 52% over the past three months, indicating strong market performance [15][16]. Group 2: C3.ai - C3.ai focuses on enterprise AI applications, providing a platform for large-scale implementations across various sectors, including government and manufacturing [10][12]. - The company has established a partner ecosystem, with 90% of closed deals in the recent quarter being partner-led, enhancing its market reach [11]. - However, C3.ai faced a 19% revenue decline in Q1 of fiscal 2026, with a non-GAAP operating loss of $57.8 million, attributed to weak sales execution and leadership changes [13][29]. - The company has a strong balance sheet with $711.9 million in cash and securities, providing flexibility for growth despite recent operational challenges [14]. - C3.ai's stock has decreased by 26.9% over the past three months, reflecting its struggles in the market [15][16]. Group 3: Valuation and Estimates - SoundHound's market cap is approximately $5.8 billion, with a forward price/sales ratio of 28.95, indicating high expectations for future growth [19]. - In contrast, C3.ai has a market cap of around $2.41 billion and a forward price/sales ratio of 7.52, suggesting a lower valuation compared to SoundHound [19]. - Recent estimates indicate that SoundHound's loss per share for 2025 has improved, while C3.ai's loss per share estimate has widened, reflecting differing investor sentiments [21][26].