Enterprise AI software company C3.ai (NYSE: AI) will be reporting results this Wednesday afternoon. Here’s what investors should know.
C3.ai met analysts’ revenue expectations last quarter, reporting revenues of $75.15 million, down 20.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.
Is C3.ai a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting C3.ai’s revenue to decline 23.4% year on year, a reversal from the 26% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. C3.ai rarely misses Wall Street’s revenue estimates.
Looking at C3.ai’s peers in the data and analytics software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Teradata delivered year-on-year revenue growth of 2.9%, beating analysts’ expectations by 5.4%, and Confluent reported revenues up 20.5%, topping estimates by 2.2%. Teradata traded up 29.6% following the results while Confluent’s stock price was unchanged.
Read our full analysis of Teradata’s results here and Confluent’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. Unfortunately, data and analytics software stocks have struggled in this environment as share prices are down 22% on average over the last month. C3.ai is down 24.3% during the same time and is heading into earnings with an average analyst price target of $14.13 (compared to the current share price of $9.78).
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