C3.ai Stock Rises As US Taps Its Agentic AI Platform For Nationwide Health Data Overhaul — Retail Bulls See More Room To Run

• Shares rose after C3.ai announced a new federal contract to modernize national health data.
• The gain came despite Q2 results that met estimates and an ‘Underperform’ call from DA Davidson.
• Stocktwits users voiced optimism, citing perceived undervaluation and heavy short interest.

C3.ai (AI) shares rose nearly 2% on Thursday after the company said that the U.S. Department of Health and Human Services (HHS) has selected its Agentic AI Platform to build a secure, unified data foundation across national health programs. 

The contract lifted sentiment a day after C3.ai reported second quarter (Q2) results that matched expectations but drew an ‘Underperform’ rating and $13 price target from DA Davidson, implying a 14% downside from the current market price. 

HHS Contract Boosts Sentiment

The company said HHS will use the C3 Agentic AI Platform to integrate disease-specific data enclaves from the National Institutes of Health with Medicare, Medicaid, claims, and state registry datasets. C3.ai noted that the platform is intended to improve data quality and governance, support advanced analytics and research, and automate labor-intensive federal administrative workflows.

“HHS is taking a major step toward a modern, AI-ready architecture for national health data,” CEO Stephen Ehikian said, adding that C3.ai’s technology is designed to unify large, complex systems at federal scale.

C3.ai said the new data foundation will support biomedical research, program integrity, and public health analysis.

Q2 Review

C3.ai reported Q2 revenue of $75.1 million, slightly above consensus expectations of $74.9 million. Loss per share (EPS) came in at $0.25, narrower than the expected $0.33 loss.

“We delivered a solid quarter driven by excellent performance in our Federal business and increased high-value deal activity across our customer base,” Ehikian said. “The Federal market continues to be a large growth vector for us.”

The company issued guidance for FY26, projecting revenue in the range of $289.5 million to $309.5 million, compared with consensus at $298.7 million. C3.ai expects an operating loss of $180.5 million to $210.5 million for the year.

For the third quarter, C3.ai guided revenue to $72 million to $80 million, versus consensus at $75.6 million.

Analyst Take

DA Davidson maintained its ‘Underperform’ rating following the results, stating that the company is still recovering from last quarter’s substantial earnings miss. The firm noted that while C3.ai avoided negative effects from the federal government shutdown during the quarter, it continues to struggle with profitability. The brokerage expressed skepticism regarding the company’s outlook, saying the latest guidance reinforces expectations for declining growth, according to a report by Investing.

Stocktwits Users See Room To Run

On Stocktwits, retail sentiment for C3.ai was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said, “nice thing about this stock is the market still lets you load more shares cheap when it should be running to $18 today.”

Another user said “gov news is what is needed”, noting that C3 AI is among the market’s most heavily shorted names and suggesting that this dynamic could become a key factor in near-term trading.

C3.ai’s stock has declined 56% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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