Forget C3.ai. While It Burns Cash and Faces Lawsuits This 6.74% Yielding Pipeline Giant Is Quietly Powering AI Data Centers

C3.ai shares rose on retail optimism that enterprise AI software has bottomed, but financial results show major deterioration. Q3 FY26 revenue fell 46.1% year over year to $53.26 million and missed consensus by 29.59%. GAAP gross margin dropped to 17% from 59% a year earlier, and free cash flow worsened to negative $56.2 million. Management cut 26% of the workforce, an investor fraud investigation was triggered, and securities class action lawsuits were filed related to disclosure timing around founder Thomas Siebel’s health. Q4 FY26 guidance implies continued revenue decline, with large projected operating losses. Enbridge is presented as a steadier alternative with durable cash flow from regulated and take-or-pay models, consistent guidance, and dividend-focused capital allocation.

"The C3.ai story is broken, not bottoming The fundamentals are unraveling beneath the surface. Q3 FY26 revenue came in at $53.26 million, down 46.1% year over year and missing consensus by 29.59%. GAAP gross margin collapsed to 17% from 59% a year earlier. Free cash flow worsened to negative $56.2 million. Management cut 26% of the workforce, an investor fraud investigation has been triggered, and multiple securities class action lawsuits have been filed over the timing of disclosures around founder Thomas Siebel's health."

"The Q4 FY26 guide of $48 to $52 million implies revenue is still shrinking, and the FY26 non-GAAP operating loss is projected at $219.5 to $227.5 million. Trailing operating margin sits at negative 263.6%, return on equity at negative 55%, and the average Wall Street price target is $8.82, below where the stock trades today. The five-year return is negative 84.83%. This is a melting ice cube wearing an AI label."

"Enbridge: the boring monopoly quietly winning the AI buildout The contrasting setup belongs to Enbridge ( NYSE:ENB), the $124.6 billion North American pipeline and gas distribution operator that just printed Q1 2026 adjusted EBITDA of $5.81 billion and distributable cash flow of $3.85 billion. Three reasons retirement-focused capital belongs here. 1. Cash flow durability the market is mispricing. Enbridge runs a take-or-pay and regulated commercial model that has met or exceeded guidance for 20 consecutive years. Management reaffirmed 2026 adjusted EBITDA guidance of C$20.2 to C$20.8 billion and DCF per share of C$5.70 to C$6.10, with a post-2026 5% CAGR across EBITDA, DCF, and EPS."

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