C3.ai stock has surged 12% in 6 months due to strong partnerships and revenue growth

From Nasdaq: 2025-01-21 12:08:00

C3.ai shares have outperformed the Computer & Technology sector, gaining 12% in the last six months. The company closed 58 agreements in Q2, with 36 involving pilot projects, indicating increased demand for its Enterprise AI and Generative AI offerings.

C3.ai’s strong partner base, including Amazon, Alphabet, and Microsoft, has driven 62% of its agreements in Q2. The company saw a 180% year-over-year increase in agreements with Google Cloud and is benefiting from an expanding partnership with Microsoft.

C3.ai continues to expand its U.S. government partnerships, securing a task order from the U.S. Army to modernize information collection management processes. The company’s federal business saw strong growth in Q2 with new agreements across various government agencies.

C3.ai expects solid revenue growth, with Q3 revenues projected between $95.5 million and $100.5 million. For fiscal 2025, revenues are expected to range from $378 million to $398 million, driven by strong adoption of its AI solutions.

The Zacks Consensus Estimate for C3.ai’s Q3 fiscal 2025 revenues is $97.97 million, indicating a 24.96% growth. However, the consensus estimate for loss remains unchanged at 25 cents per share, with a year-over-year decline of 92.31%.

Despite strong demand and revenue growth, C3.ai faces stiff competition in the enterprise AI sector, leading to margin pressure. The stock is not cheap, with a Zacks Rank #4 (Sell), suggesting caution for investors. Macro uncertainties are also impacting AI’s development and adoption.

Experts recommend keeping an eye on C3.ai stock due to its potential for early price pops. The company’s partnership with major cloud providers and government agencies, along with its revenue growth guidance, make it an interesting stock to watch.



Read more at Nasdaq: Here’s Why You Should Avoid C3.ai Stock Despite 12% Surge in 6 Months