C3.ai Earnings Top Views. AI Stock Rises On Fiscal 2025 Revenue Outlook

C3.ai Earnings Top Views. AI Stock Rises On Fiscal 2025 Revenue Outlook

C3.ai (AI) reported a smaller-than-expected fourth-quarter fiscal loss on Wednesday, while revenue topped estimates. Full-year 2025 guidance for C3.ai stock came in better than expected. AI’s stock rose following the announcement, amid elevated short-term interest in the company.




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The artificial intelligence software maker released its April quarter results after the market closed.

Best Estimates for C3.ai Earnings

In the fiscal fourth quarter, C3.ai said it lost 11 cents per share on an adjusted basis. That compares to a loss of 13 cents a year earlier.

Additionally, revenue increased 20% to $86.6 million. Wall Street analysts surveyed by FactSet had forecast a loss of 30 cents per share on revenue of $84.4 million.

For the current quarter ending in July, the company forecast revenue of $82.5 million at the midpoint of guidance. Additionally, analysts forecast revenue of $85.9 million.

For fiscal 2025, C3.ai forecasts revenue of $382.5 million at the midpoint of guidance. Analysts forecast revenue growth of 19% to $367.7 million, up from 14.6%.

On the stock market today, AI stock rose more than 9% to 26.14 in extended trading. AI shares had fallen about 16% in 2024 before C3.ai’s earnings report.

AI Stock: Heavily Shorted

In the run-up to C3.ai’s earnings report, nearly 30% of the company’s shares were sold short.

If traders think the price of a stock is falling, they may sell it short. They borrow shares and sell them, intending to buy them back at a lower price. This is often what hedge funds do, given the risks and margin required. During a short squeeze, the stock jumped thanks to better-than-expected results. Short sellers must either invest more money to secure their position or close their positions. This usually causes the stock to rise.

MarketSurge users can navigate to the upper left corner of a weekly chart and find short-term interest data for all stocks in the IBD database.

Awaiting commercial deployment of AI

C3.ai told analysts that it expects revenue growth to accelerate as more AI pilot projects enter commercial production.

The software company helps companies create artificial intelligence applications and targets the energy, financial services and defense markets. But he did not disclose the prices of the new generative AI products.

Meanwhile, C3.ai is one of many AI Stocks to Watch.

C3.ai has abandoned its goal of becoming profitable on an adjusted basis amid growing investments in artificial intelligence. Additionally, C3.ai is transitioning to consumer-priced services, which is weighing on profit margins in the short term.

Additionally, C3.ai had a Relative Strength Rating of 12 out of the best possible 99 prior to the earnings report, according to Checking ITN stocks.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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