C3.ai (NYSE: AI) delivered a standout fourth quarter performance that sent its stock soaring over 25% in after-hours trading on May 28, 2025. The enterprise AI software company not only beat earnings expectations by a significant margin but also showcased robust revenue growth of 26% year-over-year, reaching $108.7 million.
The stellar results were bolstered by the renewal and expansion of its strategic partnership with Baker Hughes through 2028, signaling strong momentum in the rapidly evolving enterprise AI market.
C3.ai Delivers Impressive Fourth-Quarter Results, Outperforming Expectations
C3.ai delivered impressive fourth quarter results that surpassed Wall Street expectations on multiple fronts. The company reported a non-GAAP net loss per share of $0.16, significantly better than the analyst consensus of -$0.20, representing a $0.04 beat. Revenue for the quarter reached $108.7 million, edging out estimates of $108.53 million and marking a robust 26% increase compared to $86.6 million in the same period last year.
The company’s subscription revenue, which forms the backbone of its business model, grew 9% year-over-year to $87.3 million, representing 80% of total quarterly revenue. When combined with prioritized engineering services, this recurring revenue stream totaled $104.4 million, up 22% year-over-year and accounting for 96% of total revenue. For the full fiscal year 2025, C3.ai achieved total revenue of $389.1 million, a substantial 25% increase from the previous year’s $310.6 million.
The company’s gross margins showed solid performance with non-GAAP gross margin reaching 69% for the quarter, while maintaining a strong cash position of $742.7 million in cash, cash equivalents, and marketable securities.
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C3.ai’s Stock (AI) Surges After Firm Reports Better-than-Expected Results
C3.ai’s stock experienced explosive growth following the earnings announcement, surging from a previous close of $23.02 to $28.83, representing a remarkable 25.23% jump in after-hours trading. The stock opened at $26.59 and reached intraday highs above $30 during regular trading hours on May 29, 2025.
This dramatic price movement reflects investor enthusiasm for the company’s diversification strategy and partnership expansion. The stock had been under pressure in recent months, down 1.83% over the previous three months and 3.72% over the past 12 months, making this earnings-driven rally particularly significant for shareholders.
Trading volume spiked to over 36 million shares, far exceeding the average volume of 3.9 million, indicating strong institutional and retail investor interest. The company’s market capitalization expanded to approximately $3.83 billion following the surge.
Looking ahead, C3.ai provided fiscal 2026 revenue guidance of $447.5-$484.5 million, slightly above the analyst consensus of $466 million, suggesting continued momentum into the new fiscal year.
The positive market reaction was further amplified by key business developments, including the expanded Baker Hughes partnership through 2028 and a significant $450 million contract ceiling increase from the U.S. Air Force for the PANDA predictive maintenance platform, demonstrating the company’s growing traction in both commercial and government markets.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
