Shares of C3.ai (AI) surge in after-hours trading after the software company reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at -$0.16, which beat analysts’ consensus estimate of -$0.20 per share. Furthermore, sales increased by 26% year-over-year, with revenue hitting $108.7 million. This also beat analysts’ expectations of $107.8 million.
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The solid results were driven by artificial intelligence-related spending that remained strong during the quarter. This also led to a 9% rise in subscription revenue to $87.3 million and an increase in professional services revenue from $6.7 million to $21.39 million, which continues the company’s trend of steady growth, as illustrated by the image below.
C3.ai Provides Guidance
Looking forward, management has provided the following guidance for 2026:
- Q1 revenue between $100 – $109 million versus estimates of $105.8 million
- Q1 loss from operations of -$23.5 million to -$33.5 million
- FY26 revenue between $447.5 – $484.5 million versus estimates of $466.1 million
- FY26 loss from operations of -$87 million to -$97 million
As we can see, revenue forecasts at the midpoint slightly beat estimates, which is likely why the stock is rallying in after-hours trading, especially since the stock price fell today heading into the report.
What Is the Price Target for AI?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on C3.ai stock based on two Holds and two Sells assigned in the past three months. Furthermore, the average C3.ai price target of $18.50 per share implies 20.2% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
