What's Going On With C3.ai (AI) Stock?

C3.ai AI shares jumped about 2% on Thursday morning after the company won a U.S. Health and Human Services contract to build a data foundation spanning NIH and CMS.

The work will integrate disease-specific NIH data enclaves with Medicare, Medicaid, claims and state registries, notably boosting the company's federal pipeline amid rising government demand for AI platforms.

C3.ai also reported fiscal second-quarter results that narrowly beat estimates. Adjusted loss per share was $0.25, better than the $0.33 consensus, while revenue fell 20% year-on-year to $75.1 million, above forecasts.

Management projected third-quarter revenue of $72 million to $80 million and full-year revenue of $289.5 million to $309.5 million, both ranges that sit near or above Street expectations.

It guided operating losses of $180.5 million to $210.5 million in fiscal 2026, underlining ongoing profitability challenges despite growth in federal bookings, up 89% year-on-year.

Analysts were split: Citizens JMP kept a Buy rating and $24 target, while Morgan Stanley maintained a Sell call and a $11 target, reflecting diverging views on C3.ai's path to scale.