Despite the recent flurry of tariff news and economic uncertainty portrayed by pundits, several key indicators are flashing bullish signals, including:Atlanta Fed GDPNOw Estimates 3.8% Q2 GDP GrowthThe “GDPNow Model” is a model created by the Federal Reserve Bank of Atlanta to provide a real-time estimate of the current quarter’s Gross Domestic Product (GDP) growth. Through its “Nowcasting” model, the GDPNow Model leverages a purely data-driven model that interprets current data to predict the future instea ...

Group 1 - The article highlights the current volatile earnings season and the uncertain macroeconomic environment, which has led investors to seek positive news, particularly from companies like C3.ai [1] - C3.ai is positioned as an enterprise AI platform that focuses on delivering AI and automation solutions, indicating its relevance in the technology sector [1] - The author, Gary Alexander, has extensive experience in covering technology companies and has been a contributor to Seeking Alpha since 2017, suggesting a knowledgeable perspective on industry trends [1] Group 2 - The article does not provide specific financial data or performance metrics for C3.ai or the broader industry [2][3]

Core Insights - C3.ai experienced a 12.3% increase in share price after reporting fourth-quarter fiscal 2025 results, which included a narrower-than-expected loss and revenues exceeding estimates [1][3]. Financial Performance - In the fiscal fourth quarter, C3.ai reported an adjusted loss of $0.16 per share, better than the Zacks Consensus Estimate of a loss of $0.20, and a non-GAAP loss of $0.11 in the same quarter last year [3]. - Revenues reached $108.7 million, surpassing the consensus estimate of $108.3 million by 0.4% and marking a 26% year-over-year increase [3]. - Subscription revenues, which account for 80% of total revenues, increased by 9% year-over-year to $87.3 million, while professional service revenues surged to $21.4 million [4]. Operational Highlights - The non-GAAP gross margin for the reported quarter was 69%, slightly down from 70% in the previous year [5]. - Research and development expenses rose by 15.4% to $58.4 million, while general and administrative expenses increased by 36.6% to $27.4 million [5]. - Sales and marketing expenses also saw an increase of 11.8% year-over-year, totaling $70.7 million [5]. Annual Performance - For fiscal 2025, total revenues were $389.1 million, up from $310.6 million in fiscal 2024 [7]. - The non-GAAP loss from operations for fiscal 2025 was $52.4 million, an improvement from a loss of $56.2 million in fiscal 2024 [7]. - Adjusted loss per share for fiscal 2025 was $0.41, down from $0.47 in the previous year [7]. Balance Sheet - As of April 30, 2025, C3.ai had total cash, cash equivalents, and short-term investments of $742.7 million, a slight decrease from $750.4 million at the end of fiscal 2024 [8]. Future Guidance - For the first quarter of fiscal 2026, C3.ai expects revenues between $100 million and $109 million, with a projected non-GAAP loss from operations of $23.5 million to $33.5 million [9]. - For the full fiscal 2026, the company anticipates revenues between $447.5 million and $484.5 million, with a non-GAAP loss from operations expected to be in the range of $65 million to $100 million [10].

Market Overview - US stock index futures rose before the market opened, with Dow futures up 0.39%, S&P 500 futures up 0.88%, and Nasdaq futures up 1.34% [1] - European indices also showed positive movement, with Germany's DAX up 0.13%, UK's FTSE 100 up 0.05%, France's CAC40 up 0.63%, and the Euro Stoxx 50 up 0.50% [2][3] Commodity Prices - WTI crude oil increased by 0.40% to $62.09 per barrel, while Brent crude oil rose by 0.26% to $64.49 per barrel [3][4] Corporate News - Nvidia (NVDA.US) reported Q1 revenue of $44.1 billion, a 69% year-over-year increase, with data center revenue at $39.1 billion, up 73% year-over-year [11] - Salesforce (CRM.US) exceeded Q1 expectations with revenue growth of 8% to $9.8 billion and raised its revenue guidance for FY2026 [12] - C3.ai (AI.US) reported a 26% increase in revenue to $10.87 million for Q4 FY2025, with a positive outlook for FY2026 [13] - HP (HPQ.US) lowered its full-year earnings forecast due to tariff costs and economic weakness, with Q2 revenue of $13.2 billion, exceeding expectations but EPS falling short [14] - Li Auto (LI.US) reported a net profit of 647 million RMB for Q1 2025, a 9.4% increase year-over-year, with total vehicle deliveries of 92,864 units [15] - Futu Holdings (FUTU.US) saw Q1 revenue grow by 81.1% to 4.695 billion HKD (approximately $603 million), with net profit increasing by 97.7% [16] Economic Data and Events - Upcoming economic data includes the revision of the US Q1 GDP annualized rate and initial jobless claims for the week ending May 24 [17]

Core Viewpoint - C3.ai has reported strong performance driven by the increasing demand for enterprise-level AI applications, with revenue projections for fiscal year 2026 exceeding analyst expectations, indicating robust growth in both AI infrastructure and software applications [1][2] Financial Performance - For the fourth fiscal quarter of 2025, C3.ai achieved total revenue of $108.7 million, a 26% year-over-year increase, surpassing analyst expectations of $107.9 million [2] - The company expects fiscal year 2026 revenue to range between $447.5 million and $484.5 million, aligning with analyst forecasts [1] - C3.ai's subscription revenue for the fourth quarter was approximately $87.3 million, a 9% increase from the previous year, accounting for 80% of total revenue [2] - The company anticipates a Non-GAAP operating loss of $23.5 million to $33.5 million for the first quarter of fiscal year 2026, which is better than the analyst average expectation of a $35.2 million loss [2] Product and Market Position - C3.ai is a leader in the enterprise-level AI application market, offering a comprehensive suite of generative AI solutions that enhance operational efficiency across various industries [3][4] - The company has integrated large language models (LLMs) into its AI software products, launching the C3 Generative AI suite [4] - C3.ai has established a strong foothold in high-barrier industries such as energy and defense, benefiting from the growing interest in AI among enterprise customers [3][4] Strategic Partnerships and Growth - C3.ai has expanded its strategic partnership with Baker Hughes, focusing on joint product sales and investment in AI solutions to enhance operational efficiency in the energy sector [6] - The company has secured long-term contracts with major clients, including the U.S. Department of Defense and large energy firms like Shell and ExxonMobil [6] - C3.ai signed 69 agreements in the fourth quarter, including 36 initial production deployment agreements, indicating strong market demand [7] Industry Trends - The AI application software market is expected to experience significant growth, with the AI agent market projected to expand from $7.8 billion in 2025 to approximately $52.6 billion by 2030, reflecting a compound annual growth rate of 46% [9] - The emergence of AI agents is anticipated to transform AI applications from information assistance tools to highly intelligent productivity tools, significantly enhancing operational efficiency [8][9]

Financial Data and Key Metrics Changes - Total revenue for Q4 reached $108.7 million, reflecting a 26% increase compared to $86.6 million in the same quarter of the prior year [41] - Subscription revenue for the quarter was $87.3 million, up 9% from $79.9 million a year ago [41] - For the full fiscal year 2025, total revenue was $389.1 million, a 25% increase compared to $310.6 million in fiscal 2024 [42] - Non-GAAP gross profit for Q4 was $75.2 million, equating to a gross margin of approximately 69% [41] - The company closed Q4 with $742.7 million in cash, cash equivalents, and investments, remaining largely unchanged from a year ago [41][68] Business Line Data and Key Metrics Changes - Revenue from the sale of software licenses that are demonstration versions of C3AI applications was $33.8 million during the quarter [64] - Professional services revenue was $21.4 million, with prioritized engineering services accounting for $17 million [65] - Non-Baker Hughes revenue grew by 37% year over year during the quarter and by 40% during the year [65] Market Data and Key Metrics Changes - Non-oil and gas revenue increased by 48% year over year, reflecting successful expansion into 19 different industries [44] - Revenue in state and local government grew over 100% in fiscal 2025, with 71 agreements closed across organizations in 24 states [45] - The life sciences and healthcare sector is emerging as a strength, with traction from customers like GSK and Quest Diagnostics [46] Company Strategy and Development Direction - The company is focused on building a robust partner ecosystem, with 73% of agreements delivered in collaboration with partners [48] - The renewed partnership with Baker Hughes is expected to drive innovation and opportunity in the energy sector [44] - The company aims to capitalize on the growing market for generative AI and Agentic AI, with over 100 solutions deployed [30][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving non-GAAP profitability during the second half of fiscal 2027, with expectations of being free cash flow positive in Q4 of fiscal 2026 [71] - The company highlighted the importance of geopolitical stability for its revenue guidance, acknowledging potential risks [71] - Management emphasized the unique position of C3AI as the only enterprise AI application pure play, with a focus on delivering turnkey solutions [60] Other Important Information - The company has delivered over 130 applications to date, with a focus on addressing real-world business challenges [60] - The partnership with PwC targets key industries such as financial services and manufacturing, enhancing AI-driven transformation [50] - The company has a strong cash position, maintaining approximately $750 million in cash over the past year [35][68] Q&A Session Summary Question: How does the company activate Azure sales reps to deliver C3AI? - The company is charting its salespeople to partner with Azure sales reps, focusing on joint sales calls and providing necessary tools for effective demonstrations [73][75] Question: Can you provide details on the economics of the new Baker Hughes deal? - Specifics are covered under NDA, but the partnership has broadened significantly, continuing to develop solutions together [82] Question: How did the company construct its revenue guidance for FY26? - The guidance reflects awareness of geopolitical risks and the need for stability, with expectations of revenue growth exceeding expense growth [85][87]

Financial Data and Key Metrics Changes - Total revenue for Q4 reached $108.7 million, reflecting a 26% increase compared to $86.6 million in the same quarter of the prior year [41] - Subscription revenue for the quarter was $87.3 million, up 9% from $79.9 million a year ago [41] - For the full fiscal year 2025, total revenue was $389.1 million, a 25% increase compared to $310.6 million in fiscal 2024 [42] - Non-GAAP gross profit for Q4 was $75.2 million, equating to a gross margin of approximately 69% [41] - Non-GAAP operating loss was $31.2 million, which was within the guidance range of $30 million to $40 million [41] - Free cash flow for Q4 was $10.3 million, with cash, cash equivalents, and investments totaling $742.7 million at the end of the quarter [41][68] Business Line Data and Key Metrics Changes - Revenue from the sale of software licenses that are demonstration versions of C3AI applications was $33.8 million during the quarter [64] - Professional services revenue was $21.4 million, with prioritized engineering services accounting for $17 million [65] - Non-Baker Hughes revenue grew by 37% year over year during the quarter and by 40% during the year [65] Market Data and Key Metrics Changes - Non-oil and gas revenue increased by 48% year over year, reflecting successful expansion into 19 different industries [44] - Revenue in state and local government grew over 100% in fiscal 2025, with 71 agreements closed across organizations in 24 states [45] - The life sciences and healthcare sector is emerging as a strength, with traction from customers like GSK and Quest Diagnostics [46] Company Strategy and Development Direction - The company has focused on building a robust partner ecosystem, with 73% of agreements delivered in collaboration with partners [48] - Strategic partnerships with Microsoft, AWS, and Google Cloud are pivotal for expanding market reach and enhancing execution [49] - The renewed partnership with Baker Hughes is expected to drive innovation and opportunity in the energy sector [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting revenue growth to continue exceeding expense growth [71] - The company anticipates crossing into non-GAAP profitability during the second half of fiscal 2027 and expects to be free cash flow positive in Q4 of fiscal 2026 [71] - The enterprise AI market is described as a vast and growing opportunity, with a focus on delivering secure, scalable, and production-grade solutions [59] Other Important Information - The company has delivered over 130 applications to date, positioning itself uniquely in the AI landscape [60] - The C3 generative AI revenue grew more than 100% in FY 2025, with significant deployments across various industries [56] - The company holds a patent for Agentic AI, which is expected to capitalize on a rapidly growing market [29] Q&A Session Summary Question: How does the company activate Azure sales reps to deliver C3AI? - The company is focusing on engaging Azure sales reps through joint sales calls and providing them with the necessary tools to demonstrate solutions effectively [73][75] Question: Can you provide details on the economics of the new Baker Hughes deal? - Specifics are under NDA, but the partnership has broadened significantly, continuing to provide solutions and enabling Baker Hughes to develop derivative works [82] Question: How did the company construct its revenue guidance for FY26? - The guidance reflects awareness of geopolitical risks and the need for stability, with expectations that revenue growth will continue to exceed expense growth [85]

Financial Data and Key Metrics Changes - Total revenue for Q4 reached $108.7 million, reflecting a 26% increase compared to $86.6 million in the same quarter of the prior year [42] - Subscription revenue for the quarter was $87.3 million, up 9% from $79.9 million a year ago [42] - For the full fiscal year 2025, total revenue was $389.1 million, a 25% increase compared to $310.6 million in fiscal 2024 [43] - Non-GAAP operating loss was $31.2 million, which was within the guidance range of $30 million to $40 million [42][67] - Free cash flow for the quarter was $10.3 million, and the company closed Q4 with $742.7 million in cash, cash equivalents, and investments [42][68] Business Line Data and Key Metrics Changes - Subscription and prioritized engineering services revenue totaled $104.4 million, representing 96% of total revenue and a 22% increase from $85.7 million in Q4 of the previous year [42][66] - Revenue from the sale of demonstration software licenses was $33.8 million during the quarter [64] - Non-Baker Hughes revenue grew by 37% year over year during the quarter and by 40% during the year [65] Market Data and Key Metrics Changes - Non-oil and gas revenue increased by 48% year over year, reflecting successful expansion into 19 different industries [45] - Revenue in state and local government grew over 100% in fiscal 2025, with 71 agreements closed across organizations in 24 states [46] - The life sciences and healthcare sector is emerging as a strength, with traction from customers like GSK and Quest Diagnostics [47] Company Strategy and Development Direction - The company has focused on building a robust partner ecosystem, with 73% of agreements delivered in collaboration with partners, resulting in a 68% increase in agreements closed through this network [49] - The renewed partnership with Baker Hughes is expected to drive innovation and opportunity in the energy sector, generating over $5 billion in revenue from this vertical [44] - The company is strategically positioned to capitalize on the growing market for AI applications, with a focus on delivering secure, scalable, and production-grade solutions [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in crossing into non-GAAP profitability during the second half of fiscal 2027, with expectations of free cash flow positivity in the fourth quarter of fiscal 2026 [71] - The company anticipates continued revenue growth exceeding expense growth, driven by a robust suite of enterprise AI applications and an expanding partner ecosystem [71] - Management highlighted the importance of geopolitical stability for achieving revenue guidance, acknowledging risks in Europe and global trade [71] Other Important Information - The company has delivered over 130 applications to date, with 95% of bookings in fiscal 2025 driven by AI applications [61] - The company holds a patent for Agentic AI, positioning it uniquely in the market as the only enterprise AI application pure play [30] Q&A Session Summary Question: How does the company activate Azure sales reps to deliver C3 AI? - The company is focusing on engaging Azure sales reps through joint sales calls and providing them with the necessary tools to demonstrate solutions effectively [73][75] Question: Can you provide insights on the new Baker Hughes deal? - The specifics are under NDA, but the partnership has broadened significantly, continuing to provide solutions and enabling Baker Hughes to develop derivative works [82] Question: How was the revenue guidance for FY26 constructed? - The guidance reflects awareness of geopolitical risks and the need for stability, with a larger range due to potential market fluctuations [85]

Financial Highlights - C3 AI's FY25-Q4 revenue reached $108.7 million[22], representing a 26% growth compared to FY24-Q4[5, 8] - Subscription revenue for FY25-Q4 was $87.3 million[22] - The company's cash balance stands at $742.7 million[5] - For FY25, total revenue was $389.1 million, a 25% year-over-year increase[6, 23] - Subscription revenue accounted for 84% of the total revenue in FY25[6] - Non-GAAP gross margin for FY25 was 69.6%[6, 23] Partner Ecosystem - C3 AI closed 193 agreements through its partner network in FY25, a 68% year-over-year increase, accounting for 73% of total agreements[12] - Partner-supported bookings grew by 419% year-over-year in Q4[12] Guidance - C3 AI projects FY26-Q1 total revenue to be between $100.0 million and $109.0 million, representing a 15%-25% year-over-year growth[19] - The company anticipates FY26 total revenue to be between $447.5 million and $484.5 million, also a 15%-25% year-over-year growth[19]

Core Insights - C3.ai projects revenue between $447.5 million and $484.5 million for 2026, with analyst expectations at $465.5 million [1] Group 1 - The company's revenue forecast for 2026 indicates a significant growth potential in the AI sector [1]