C3.Ai Inc AI shares are rising Thursday after the company reported better-than-expected results for the fourth quarter. The company also announced that the U.S. Air Force raised its contract ceiling to $450 million.
What Happened: C3 AI reported fourth-quarter revenue of $108.7 million, beating estimates of $107.73 million. The company reported an adjusted loss of 18 cents per share, beating estimates for a loss of 20 cents per share, according to Benzinga Pro.
Total revenue increased 26% year-over-year as subscription revenue jumped 9% year-over-year. C3 AI noted that it renewed and expanded its strategic partnership with Baker Hughes through a multi-year agreement.
The company closed out the quarter with $742.7 million in cash, cash equivalents and marketable securities.
“The Enterprise AI market is converging toward AI applications — a category we created and continue to lead. We continue to innovate, most recently in agentic AI. We continue to grow, expanding our partner ecosystem and global reach. And we are ready to scale as demand for AI applications accelerates,” said Thomas Siebel, chairman and CEO of C3 AI.
C3.AI guided for first-quarter revenue of $100 million to $109 million versus estimates of $105 million. The company expects fiscal-year 2026 revenue to be in the range of $447.5 million to $484.5 million, versus estimates of $467.19 million.
C3 AI shares are also getting a boost Thursday morning after the company announced the U.S. Air Force Rapid Sustainment Office (RSO) raised the contract ceiling with the company to $450 million through October 2029, up from $100 million.
The initial $100 million has already been fully utilized to deploy the predictive maintenance platform PANDA, the company said.
“We believe our program with RSO may be the largest production AI deployment in the U.S. DoD today. At the scale of the U.S. Air Force, this system has the potential to increase aircraft availability by up to 25%,” said Ed Abbo, chief technology officer of C3 AI.
AI Price Action: C3.AI shares were up 17.1% at $26.91 at the time of publication Thursday, according to Benzinga Pro.
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