C3.AI Inc (NYSE:AI) shares are under pressure on Wednesday as traders position ahead of the company’s fiscal fourth‑quarter earnings release after the close.
- C3.ai stock is feeling bearish pressure. What’s behind AI decline?
C3.AI Gears Up For Earnings
Analysts expect C3.ai to post a quarterly loss of 45 cents per share on revenue of $50.13 million for the company’s fiscal fourth quarter.
In the third-quarter, C3.ai generated $53.3 million in total revenue, with subscription sales contributing $48.2 million, or 90% of the total. The company reported an adjusted net loss of 40 cents per share and adjusted gross margin of 37%. C3.ai closed 44 agreements during the quarter, including new and expanded deals with the U.S. Department of Agriculture, Department of Energy, NATO Communications and Information Agency and commercial clients such as ExxonMobil, GSK and U.S. Steel.
The Federal, Defense and Aerospace segment showed strong traction, with bookings up 134% year-over-year and accounting for 55% of total bookings. New agreements were signed with the U.S. Navy, Missile Defense Agency and the Intelligence Community, underscoring the company’s growing presence in government AI contracts.
Guidance And Investor Sentiment
For fiscal 2026, C3.ai projected total revenue between $246.7 million and $250.7 million and a non‑GAAP operating loss between $219.5 million and $227.5 million, excluding $10 million to $12 million in restructuring costs. Fourth‑quarter revenue guidance of $48 million to $52 million sits below the third-quarter’s $53.3 million, pointing to a sequential slowdown that may be weighing on sentiment ahead of the report.
CEO Stephen Ehikian, who joined six months ago, said the company has largely completed a restructuring focused on cost cuts, lower cash burn and a streamlined sales organization. Despite those changes and solid government momentum, C3.ai remains unprofitable, leaving investors cautious as they await tonight’s results.
AI Shares Are Dropping
AI Price Action: C3.ai shares were down 5.72% at $10.54 at the time of publication on Wednesday, according to Benzinga Pro.
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