C3.ai Increases Fiscal Year 2025 Revenue Forecast

(Reuters) – C3.ai raised its forecast for fiscal year 2025 revenue on Monday, driven by strong demand for the company's enterprise artificial intelligence software as organizations seek tools to enhance their workflow.

Revised Revenue Expectations

The company now expects revenue to be between $378 million and $398 million, up from its previous forecast of $370 million to $395 million.

Market Response

Shares of the company rose 14.8% in extended trading.

Company Overview

Based in Redwood, California, C3.ai provides software that enables enterprises to build and develop AI applications across various sectors, including energy, manufacturing, financial services, and healthcare.

Year-to-Date Performance

C3.ai's shares have surged over 45% this year, bolstered by an expanded partnership with tech giant Microsoft, whereby C3.ai will serve as the preferred AI application software provider on Microsoft's Azure cloud.

Financial Highlights

C3.ai reported $94.3 million in second-quarter revenue, marking a 29% increase from the previous year and exceeding analysts' estimate of $91 million, as per LSEG data.

On an adjusted basis, the company registered a loss of 6 cents, while analysts had anticipated a loss of 16 cents.