C3.ai Stock Slides Despite Q3 Beat But Retail Sentiment Turns Markedly Upbeat

C3.ai, Inc. (AI) fell sharply in Thursday’s premarket trading despite the enterprise artificial intelligence software applications company reporting better-than-expected fiscal year 2025 third-quarter results.

The Redwood City, California-based company reported an adjusted loss per share of $0.12 compared to the loss of $0.13 per share recorded for the year-ago quarter. The loss was narrower than the Finchat-compiled consensus estimate of $0.25 per share.

Revenue for the quarter climbed 26% year over year (YoY) to $98.8 million, slightly exceeding the consensus estimate of $98.12 million. It also beat the mid-point of the company’s guidance of $95.5 million to $100.5 million.

Subscription revenue, accounting for about 87% of the total, increased 22% to $85.7 million. 

While revenue growth slowed from 29% in the third quarter, subscription revenue growth was sustained.

The adjusted loss per operations narrowed to $23.14 million from $25.79 million a year ago. The guidance was for a loss of $38.6 million to $46.6 million.

C3.ai Chairman and CEO Thomas Siebel said, “In the third quarter, C3.ai achieved significant milestones — expanding our global distribution network, advancing our leadership in agentic and generative AI [artificial intelligence].”

The company ended the quarter with a cash position of $724.3 million.

C3.ai said it closed 66 agreements during the quarter, up 72% YoY.

The company guided fourth-quarter revenue to $103.6 million to $113.6 million versus the consensus estimate of $108.59 million. It expects fiscal year 2025 revenue of $383.9 million to $393.9 million compared to the $388.32 average analysts’ estimate.

On Stocktwits, the retail sentiment toward C3.ai stock turned ‘extremely bullish’ from the ‘bearish’ mood that prevailed a day ago. The message volume spiked to ‘extremely high’ levels.

A bullish watcher rued the adverse stock reaction and said the stock should have been in positive territory.

Another user lauded the company for its earnings beat, subscription growth, and the cash on hand.

In premarket trading, C3.ai stock shed 7.68% to $24.41. The stock has lost about 23.2% so far this year.

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