TLDR
- C3.ai stock jumped as much as 10% in premarket hours after merger talk reports with Automation Anywhere emerged
- The discussions are preliminary with no price details and could fail to produce a deal
- Under the reported structure, Automation Anywhere would acquire C3.ai and list the combined entity publicly
- C3.ai’s market cap stands at $1.77 billion compared to Automation Anywhere’s 2019 valuation of $6.8 billion
- Wall Street holds a Hold rating on C3.ai with price targets indicating 20.4% upside from current prices
C3.ai stock climbed 8-10% in premarket action Wednesday following news of possible merger discussions with Automation Anywhere. The Information first reported the companies are exploring a combination.
The conversations remain in preliminary phases. Pricing terms have not been established. Sources indicate the talks may not result in a completed transaction.
Reports suggest Automation Anywhere could buy C3.ai in a deal that takes the combined business public. This structure would give the private automation software company access to public equity markets. C3.ai currently trades with a $1.77 billion market capitalization.
Automation Anywhere last received a $6.8 billion valuation in 2019. The size differential makes C3.ai a manageable acquisition for the larger private firm. The transaction would unite two complementary technology platforms in the enterprise AI space.
Technology and Client Base
C3.ai builds enterprise AI software for organizations including the U.S. Air Force and various government agencies. Energy firms and manufacturers also use the platform to develop large-scale AI applications.
Automation Anywhere focuses on agentic process automation technology. The company integrates robotic process automation with AI and generative AI capabilities. This combination powers end-to-end enterprise workflows for digital transformation initiatives.
C3.ai shares have fallen more than 61% over the trailing twelve months. Competitive market conditions and persistent losses have weighed on performance. Industry analysts have repeatedly identified the company as a potential acquisition candidate.
Recent Quarterly Performance
C3.ai reported fiscal 2026 second quarter results with an adjusted loss of $0.25 per share. The loss came in better than Wall Street forecasts but exceeded the prior year’s $0.06 per share loss. Revenue declined 20.4% year-over-year to $75.1 million, topping the $74.9 million estimate.
Automation Anywhere announced robust third quarter figures driven by enterprise AI adoption. AI-related bookings surged 45% year-over-year and represented more than 70% of total bookings. Remaining Performance Obligations expanded over 20% year-over-year, showing strong future revenue visibility.
The automation company maintained non-GAAP profitability for another consecutive quarter. Free cash flow generation remained steady while the top line grew. Financial discipline continued across operations.
Street Sentiment
Analyst consensus on C3.ai stock sits at Hold based on TipRanks data. The rating breakdown includes one Buy recommendation, four Hold ratings, and three Sell calls. The average analyst price target stands at $15.17 per share, representing 20.4% upside potential from current trading levels.
The merger reports come as C3.ai searches for ways to reverse its stock decline. Automation Anywhere seeks a public market presence to unlock shareholder liquidity and raise growth capital. Specific deal terms including valuation methodology and integration plans remain undisclosed. Neither C3.ai nor Automation Anywhere has publicly confirmed or commented on the reported merger discussions.
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