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C3.ai, Inc. (AI) reported a 19% year-over-year revenue decline, marking its first miss since going public. The company’s financial challenges include a non-GAAP operating loss of nearly $58 million and over $30 million burned in free cash flow. C3.ai currently holds more than $700 million in cash, but faces execution risks amid sales organizational disruptions following leadership changes.
In contrast, Microsoft Corporation (MSFT) demonstrated robust financial performance with $281 billion in revenues and $128 billion in operating income for fiscal 2025, both rising at double-digit rates. Azure generated over $75 billion in annual revenues, marking a 34% increase year-over-year, and Microsoft 365 Copilot has gained over 100 million monthly active users.
Over the past year, C3.ai’s stock has declined by 27.1%, while MSFT shares increased by 16.3%. Despite C3.ai’s promising technology, Microsoft’s comprehensive AI ecosystem, financial stability, and strong customer adoption make it a more reliable investment choice, holding a Zacks Rank #2 (Buy) compared to C3.ai’s Zacks Rank #4 (Sell).
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