Stock Analysis

C3.ai (NYSE:AI) Projects Q4 Revenue Up To US$114M Despite Losses As Q3 Revenue Hits US$99M

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C3.ai (NYSE:AI) recently announced its third quarter revenue of $98.78 million, showing an increase from last year, alongside a net loss that also grew to $80.2 million. The company's forward guidance projected revenues for the fourth quarter to range from $103.6 million to $113.6 million, while full-year fiscal 2025 revenue is anticipated between $383.9 million and $393.9 million. Despite this revenue growth, the share price fell 14.07% over the past week, which might have been influenced by broader market trends. The market experienced a 3.6% decline amid mixed investor sentiment influenced by economic concerns and new tariffs on Mexico, Canada, and China. The tech sector, including C3.ai, may have been particularly affected as key indexes like the Nasdaq decreased, raising caution amongst investors, especially in the AI and tech segments.

Get an in-depth perspective on C3.ai's performance by reading our analysis here.

NYSE:AI Earnings Per Share Growth as at Feb 2025

Over the past three years, C3.ai's total shareholder return was 16.68%. This performance was shaped by various factors including partnerships and product developments. In January 2025, the company allied with McKinsey & Company to enhance AI transformations, while late 2024 saw broadened collaborations with Microsoft and Capgemini to boost AI adoption and delivery. Such alliances could have bolstered investor confidence, contributing to the longer-term share performance.

Additionally, C3.ai's ongoing innovation played a role. With the July 2024 launch of the C3 Generative AI for Government Programs and the rebranding of the C3 AI Asset Performance Suite in October 2024, the company aimed to address public sector and sustainability needs. However, a class action lawsuit filed in May 2023 alleging securities violations could have tempered investor sentiment, influencing the stock's relative underperformance compared to the US Software industry over the last year.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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