C3.ai shares fall on weak outlook despite earnings beat by Investing.com

NEW YORK – C3.ai, Inc. (NYSE: ), the enterprise AI application software company, saw its stock fall 15% after hours Wednesday despite beating earnings expectations as investors focused on the company’s cautious outlook .

The company reported an adjusted first-quarter loss of $0.05 per share, significantly better than the analyst estimate of a loss of $0.13. Revenue for the quarter was $87.2 million, slightly above the consensus estimate of $86.94 million and up 21% from $72.4 million.

However, C3.ai’s guidance for the second quarter and full fiscal year 2025 was below market expectations. The company forecast second-quarter revenue between $88.6 million and $93.6 million, compared with analysts’ consensus of $91 million. For the full fiscal year 2025, C3.ai expects revenue in the range of $370 million to $395 million, versus the consensus estimate of $383.4 million.

Thomas M. Siebel, president and CEO of C3.ai, commented on the results, stating, “We had a solid start to the fiscal year, with growing demand for Enterprise AI driving our sixth consecutive quarter of accelerated revenue growth.”

The company reported positive free cash flow of $7.1 million for the quarter and maintains a strong cash position with $762.5 million in cash, cash equivalents and marketable securities.

C3.ai has shown significant progress in expanding its market presence, particularly in the manufacturing and state and local government sectors. The company closed 71 deals in the quarter, up 122% from last year, including 52 pilots, up 117% from last year.

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