C3.ai

Evidence of pricing power is weak. Subscription made up 91% of FY26 revenue but gross margin collapsed to 31% in FY26 and 32% in Q1 FY27, implying limited ability to price for value or scale COGS down. Prioritized engineering services recognition suggests some monetization of bespoke work but not durable pricing leverage.

Competition from hyperscalers and internal IT keeps switching/benchmarking pressure. We do not see latent, Verisign‑style or ASML‑like pricing latitude.