C3.ai Raises Annual Revenue Forecast Amid Strong Demand for Enterprise AI Solutions

C3.ai logo is seen near computer motherboard in this illustration taken January 8, 2024

 C3.ai has increased its fiscal year 2025 revenue forecast to between $378 million and $398 million, up from its previous projection of $370 million to $395 million, driven by robust demand for its enterprise artificial intelligence (AI) software.

Following the announcement, the company’s shares surged 14.8% in after-hours trading. The strong upward revision reflects the growing interest in AI solutions as businesses adopt technology to streamline workflows and improve operational efficiency.

Headquartered in Redwood, California, C3.ai specializes in AI software that enables companies across industries like energy, healthcare, finance, and manufacturing to design and implement AI applications.

This growth comes amid a key partnership with Microsoft, under which C3.ai has become the "preferred" AI application provider on Microsoft’s Azure cloud platform. This strategic move has bolstered investor confidence and helped push the company’s shares up by over 45% this year alone.

In its latest quarterly report, C3.ai posted $94.3 million in revenue, marking a 29% year-over-year increase and surpassing analysts' estimates of $91 million, according to LSEG data. Additionally, the company reported an adjusted loss of 6 cents per share, a significant improvement compared to analysts’ anticipated 16-cent loss.

C3.ai's optimistic outlook and performance underscore its growing role in the AI market as companies increasingly turn to enterprise AI for technological innovation