C3.ai, Inc. (AI) Reports Q3 Loss, Tops Revenue Estimates

Core Insights - C3.ai, Inc. reported a quarterly loss of $0.12 per share, outperforming the Zacks Consensus Estimate of a loss of$0.25, marking a 52% earnings surprise [1] - The company achieved revenues of $98.78 million for the quarter ended January 2025, exceeding the Zacks Consensus Estimate by 0.83$78.4 million [2] - C3.ai has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - The company has shown a significant improvement in earnings surprises, with a previous quarter's loss of $0.06 against an expected loss of$0.16, resulting in a 62.50% surprise [1] - C3.ai shares have declined approximately 23.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of$108.64 million, and for the current fiscal year, it is -$0.63 on revenues of$388.16 million [7] - The Zacks Rank for C3.ai is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which C3.ai belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact C3.ai's stock performance [5]