$AI (-2,57%)

⠀

📊 𝐑𝐞𝐬𝐮𝐥𝐭𝐬

• Adj. EPS: -$0.20 (Est. -$0.26) ✅

• Revenue: $52.4M (Est. $52.09M).

• Subscription Revenue: $49.2M, 94% of total revenue.

• Adj. Gross Margin: 50%.

• Adj. Operating Loss: $36.2M, improved 33% QoQ.

• Free Cash Flow: $2.1M, positive.

⠀

🎯 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞

• Q2 FY2027 Revenue: $51M–$55M (Est. $56.60M) ❌

• Q2 FY2027 Adj. Operating Loss: $34.5M–$42.5M.

• FY2027 Revenue: $210M–$240M (Est. $224.31M).

• FY2027 Adj. Operating Loss: $123M–$155M.

⠀

📌 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬

• Revenue stabilized at $52.4M and came roughly in line with consensus, while the Adj. loss per share was narrower than expected.

• Bookings increased 73% QoQ as C3 AI's turnaround efforts showed early signs of traction.

• Free cash flow turned positive at $2.1M, while the Adj. operating loss improved 33% sequentially.

• C3 AI closed 22 agreements during the quarter, including deals with Ford, Johnson & Johnson and multiple U.S. government agencies.

• Q2 revenue guidance came in below consensus, while the full-year revenue range brackets the Street estimate.

⠀

💬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐚𝐫𝐲

“Revenue has stabilized, free cash flow is positive, operating loss has narrowed, and Forrester Research named C3 AI a leader in Enterprise AI.”

My portfolio is now well divided into clear sectors. Will share my journey here 🫡 And I will try and do my best to stick to the plan, and not overdiversify

Total invested : $1,000,339

DEFENSE / $151,428 / 15.14%

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• 
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• 
  CACI International $CACI (+0,04%)

ARTIFICIAL INTELLIGENCE / $180,044 / 18%

• Palantir $PLTR (-0,72%)
• 
  AMD $AMD (-4,38%)
• 
  C3.ai $AI (-2,57%)

SEMICONDUCTORS / $218,812 / 21.87%

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• 
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• 
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SOFTWARE / $181,211 / 18.12%

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• 
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• 
  ServiceNow $NOW (+1,19%)

HEALTHCARE / $168,270 / 16.82%

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• 
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• 
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FINANCIALS / $100,574 / 10.05%

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• 
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• 
  State Street Corporation $STT (-0,02%)

$AI (-2,57%)

📊 𝐑𝐞𝐬𝐮𝐥𝐭𝐬

• Revenue: $51.6M (Est. $50.2M) ✅

• Non-GAAP EPS: -$0.33 (Est. -$0.37) ✅

• Subscription revenue: $48.4M

• Cash, cash equivalents & securities: $575.4M

• Subscription revenue represented 94% of total revenue

⠀

🎯 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞

• Q1 FY27 Revenue: $50.0M-$54.0M (Est. $51.7M) 🟰

• FY27 Revenue: $210.0M-$240.0M (Est. $248.9M) ❌

⠀

📌 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬

• Revenue beat expectations despite ongoing sales challenges

• Thomas Siebel resumed role as CEO

• FY26 subscription revenue reached $227.1M, representing 91% of total revenue

• June cash balance increased to $673M following Siebel's purchase of 6.17M shares

• FY27 outlook came in well below consensus expectations

⠀

💬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐚𝐫𝐲

“The sales performance over recent quarters has been entirely unacceptable, to the point of surreal. We are here to fix it.”

The AI-driven technology sector has experienced a dramatic selloff in late 2025, driven by concerns over overvaluation and macroeconomic uncertainty. This correction, however, has created a unique opportunity for contrarian investors to identify undervalued assets in a market that has historically rewarded patience and strategic entry timing. By analyzing recent financial metrics, competitive advantages, and catalysts for recovery, we can pinpoint Al stocks and alternative investments that may outperform in the coming year.

Undervalued AI Stocks:

• C3.ai ($AI (-2,57%)) has emerged as a compelling contrarian play. Strategic partnerships with Microsoft, AWS, and McKinsey & Company have expanded its enterprise AI adoption, while federal contracts with the U.S. Department of Defense and the Air Force underscore its operational resilience. Key catalysts include its consumption-based billing model and the integration of generative AI solutions, which could drive scalable growth.
• Quantum Computing Inc. ($QUBT) collaboration with NASA position it as a leader in niche quantum applications. With $1.5 billion in liquidity and a gross margin of 33%, QUBT's financial health contrasts with its volatile stock price, which is currently shorted at of the float. Analysts project a 96.4% upside potential, though execution risks remain.

Risks and Considerations

While the opportunities are compelling, investors must remain cautious. C3.ai's cash-burning operations and leadership transitions pose execution risks, while QUBT's reliance on quantum commercialization remains unproven. Broader macroeconomic factors, including interest rate uncertainty, could also delay sector recovery.

Conclusion

The 2025 tech selloff has created a rare window for contrarian investors to acquire undervalued AI assets at discounted prices. Companies like $AI (-2,57%), $QUBT, and $PLTR (-0,72%), supported by strong revenue growth and strategic partnerships, offer long-term upside.

Meanwhile, energy stocks ($ENB (+0,61%) and $FTS (+0,39%)) and CEFs ($SPXX and $BDJ) provide diversification in a volatile market. As the sector navigates its correction, disciplined investors who prioritize fundamentals over short-term noise may be rewarded handsomely in 2026.

$AI (-2,57%)

🔹 Revenue: $70.3M (Est. $94.5M) 🔴

🔹 Adj. EPS: ($0.37) (Est. -$0.20) 🔴

🔹 Stephen Ehikian appointed CEO effective Sept 1, 2025

Q2 Guidance

🔹 Revenue: $72M–$80M (Est. $99.6M) 🔴

🔹 Non-GAAP Loss from Operations: ($49.5M)–($57.5M)

Full-Year Guidance

🔹 Previous FY26 guidance withdrawn; updated outlook to be provided with Q2 results

Other Q1 Metrics:

🔹 Subscription Revenue: $60.3M (86% of total)

🔹 Subscription + Prioritized Eng. Services: $69.0M (98% of total)

🔹 Gross Profit: $26.4M (GAAP, 38% margin); $36.3M (Non-GAAP, 52% margin)

🔹 Cash Balance: $712M

Business Highlights

🔹 46 agreements closed in Q1, including 28 initial production deployments

🔹 Expanded agreements with Nucor, Koch, Quest Diagnostics, U.S. Army, U.S. Navy, Missile Defense Agency, among others

🔹 Federal sector: 12 agreements, ~28% of total bookings

🔹 Strategic Integrator Program launched; strong OEM partner interest

🔹 40 agreements closed via partner network; Microsoft partnership drove 140% YoY pipeline growth

🔹 Generative AI: 9 agreements closed, with measurable customer benefits (e.g., 20% productivity gains, 85%+ reductions in contract review/analysis times)

Leadership Update

🔹 Founder Thomas Siebel transitions to Executive Chairman

CEO Commentary

🔸 Thomas Siebel: “The bad news is Q1 performance was completely unacceptable. The good news is we’ve restructured sales and services with new leadership, and with a talented new CEO in place, I am confident the company is positioned to accelerate going forward.”