C3.ai (NYSE:AI) shares surged more than 26% after the enterprise AI software firm’s fiscal fourth quarter earnings topped analyst expectations for revenue and profit, driven by accelerating demand for its Generative AI products and an uptick in partner-driven deals.
Revenue for Q4 rose 26% year-over-year to $108.7 million, beating estimates of $107.8 million, while net loss per share of $0.16 came in ahead of the expected $0.20 loss.
Subscription revenue was up 9% year-over-year to $87.3 million, with combined subscription and prioritized engineering services revenue of $104.4 million, up 22% from the previous year.
Notably, revenue from Generative AI products grew 100% year-over-year in fiscal 2025, with 66 initial product deployments.
Wedbush sees this pointing to the differentiated offering C3 has within its portfolio to further bolster its growth profile.
“The company closed 193 agreements in fiscal year 2025 through its strategic partner network (up 68% year-over-year) and accounted for 73% of total agreements, including 28 agreements with Microsoft in Q4 alone as C3.ai looks to continue deepening its alliances across large-scale and strategic partners to accelerate its pipeline,” they wrote.
For fiscal year 2026, C3.ai projects total revenue in the range of $447.5 million to $484.5 million, in line with the Street estimate of $465.5 million.
Wedbush noted the company’s fiscal 2025 guidance was “relatively conservative” as it continues capitalizing on enterprise and agentic AI opportunities amid a difficult macro backdrop.
Wedbush maintained its ‘Outperform’ rating on C3.ai but lowered its price target to $35 from $45 to reflect a lower multiple.
“We believe that C3.ai is starting to gain significant traction across the enterprise AI space by strengthening its partner ecosystem to drive growth while looking to take further share within the agentic AI buildout taking place,” analysts wrote.
Shares of C3.ai added 26.2% at $29 in the early afternoon on Thursday.