From Nasdaq: 2025-02-24 11:21:00

C3.ai is gearing up to report its third-quarter fiscal 2025 results on Feb. 26, with revenue expectations ranging between $95.5 million and $100.5 million. The Zacks Consensus Estimate for revenues sits at $97.97 million, reflecting a 27.96% increase from the previous year.

The company has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 60.53%. The loss estimate for the upcoming quarter remains stable at 25 cents per share, signifying a 92.31% year-over-year decline.

C3.ai’s performance in the third quarter is anticipated to be bolstered by its C3 Generative AI solutions and heightened demand for Enterprise AI software. The company has made significant strides in generative AI applications, particularly in sectors like manufacturing, pharmaceuticals, and energy.

Despite facing fierce competition in the enterprise AI space, C3.ai has forged powerful partnerships with industry giants like Amazon, Alphabet, and Microsoft. These collaborations, especially with hyperscalers like Google Cloud, have been instrumental in driving revenue growth for the company.

C3.ai’s expanding presence in the government and defense sector, marked by new contracts with U.S. federal agencies, is expected to provide a steady revenue stream. The company’s partnerships and agreements with various arms of the U.S. military demonstrate a strong foothold in this lucrative sector.

Investors are advised to exercise caution with C3.ai stock due to intense market competition and macroeconomic uncertainties affecting the AI sector. The company’s aggressive investment strategy may impact margins in the short term, making the stock a risky proposition. Consider waiting for a more opportune time to invest.



Read more at Nasdaq: C3.ai Stock Before Q3 Earnings: A Smart Buy or Risky Investment?