C3.ai vs. Salesforce: Which Software Stock Pursuing Artificial Intelligence Is a Better Buy in 2026?
2026-08-11 18:30
•Robert Izquierdo •The Motley Fool
•••••• ••• Axe Cap view
Salesforce Outshines C3.ai in the AI Race for 2026
Salesforce’s solid financial footing and AI adoption make it a safer bet than C3.ai amid industry challenges.
While hype around AI stocks is deafening, the reality on the ground often tells a different story. Take C3.ai: a smaller AI pure-play, it’s struggling with a sharp 35.7% drop in revenue, a hefty $470 million net loss, and a client base heavily dependent on just a few customers. These are red flags that can’t be ignored. On the other hand, Salesforce is a giant with steady revenue growth (+9.6%), robust profits, and $3.4 billion in annual recurring revenue from its AI offerings—a figure growing at 200% year-on-year. From a South African perspective, the direct link isn’t strong, so this isn’t a pick for JSE investors outright. However, a stronger US dollar against the rand (USD/ZAR) means holding international tech exposure through offshore funds or JSE-listed counters invested abroad (like Naspers and Prosus) is still relevant. Watch valuation here: Salesforce trades on a more reasonable forward P/E of around 13.6 versus C3.ai’s expensive 25.6x with weaker fundamentals. If AI hype fades or macro tightening bites tech valuations further, even Salesforce could stumble. But for now, Salesforce’s financial strength and AI traction deserve attention from investors seeking global exposure via rand hedges and JSE proxies. this is just our opinion and not financial advice
Buy Salesforce through rand-hedged offshore funds or via Prosus/Naspers exposure. Avoid direct investment in C3.ai given its losses and risk profile. Keep an eye on the USD/ZAR for timing offshore entries.
- USD/ZAR
- Salesforce
- Prosus
- Worsening global tech sell-off hurting valuations
- Slower-than-expected AI adoption impacting earnings
6/10
The article compares C3.ai and Salesforce as AI-focused software investments. C3.ai faces significant challenges with a 35.7% revenue decline, $470.4M net loss, negative free cash flow, and customer concentration risk. Salesforce demonstrates strong fundamentals with $41.5B revenue (+9.6% YoY), $7.5B net income, and robust AI product adoption ($3.4B ARR for Agentforce). The author recommends Salesforce as the better buy due to superior financial health and business momentum despite both stocks declining in 2026.
Our take is based on reporting first published by The Motley Fool.
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