AI software company C3.ai (AI) will report its Fiscal Q4 2025 earnings after the market closes on Wednesday, May 28. Analysts expect revenue to grow by 24% year-over-year to about $107.8 million. Despite this growth, the company is still forecast to post an adjusted loss of -$0.20 per share, which is mainly due to heavy spending on new products and expansion.
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For reference, in the previous year’s quarter, C3.ai brought in $86.6 million in revenue, which had beaten expectations. Most of that revenue, approximately 92%, came from subscription services, as illustrated in the image below. The company also signed 47 new agreements during that period, including 34 pilot programs, which helped it close a total of 191 agreements for the Fiscal Year. This was a 52% year-over-year increase.
As a result, investors will be looking to see if C3.ai can continue to turn pilot programs into long-term contracts, especially with large organizations and government agencies. Updates on how customers are using its generative AI tools in industries like manufacturing, defense, and healthcare will also be important. As a result, how the company performs in these areas could strongly influence whether the stock moves up or down after earnings.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 13.9% move in either direction.
What Is the Price Target for AI Stock?
Overall, analysts have a Hold consensus rating on AI stock based on three Buys, four Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AI price target of $29.67 per share implies 24.3% upside potential.
