C3.ai Prepares for Q2 Earnings Release Amid Analyst Scrutiny and Industry Comparisons

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On Sat, 7 Dec, 12:03 AM UTC

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C3.ai is set to report its fiscal Q2 2025 earnings, with analysts expecting a loss per share. The report comes amid mixed analyst ratings and comparisons with industry peers, highlighting the company's position in the competitive AI market.

C3.ai's Upcoming Earnings Report

C3.ai (NYSE:AI) is poised to release its fiscal second quarter earnings report for 2025 on Monday, December 9, after market close. The enterprise artificial intelligence company's performance is under close scrutiny as it navigates the competitive AI landscape 1.

Analyst Expectations and Company Performance

Analysts estimate that C3.ai will report an earnings per share (EPS) loss of $0.16, compared to a loss of $0.13 per share in the same quarter last year. The company's revenue is projected to reach $91.02 million, marking a significant increase from $73.23 million in the previous year 2.

In the last earnings release, C3.ai outperformed expectations, beating the EPS estimate by $0.08. However, this positive surprise was followed by an 8.21% drop in share price the next trading day, highlighting the volatility and unpredictability of market reactions to earnings reports 1.

Analyst Ratings and Price Targets

The consensus rating for C3.ai among analysts is currently "Neutral," with an average one-year price target of $35.0, suggesting a potential 6.64% downside from its current trading price of $37.49 1.

Recent analyst actions include:

  • DA Davidson maintained a Neutral rating, raising the price target from $20 to $35.
  • Oppenheimer maintained an Outperform rating with a $40 price target.
  • B of A Securities maintained an Underperform rating, lowering the price target to $20.
  • Wedbush maintained an Outperform rating but reduced the price target to $30 2.

Industry Comparison and Financial Metrics

When compared to industry peers like Freshworks, InterDigital, and SoundHound AI, C3.ai's performance metrics present a mixed picture:

  • Revenue Growth: C3.ai's 20.52% growth rate lags behind some peers, particularly SoundHound AI's 89.13%.
  • Gross Profit: At $52.17 million, C3.ai's gross profit is lower than Freshworks and InterDigital.
  • Return on Equity: C3.ai's -7.19% ROE is better than SoundHound AI but trails behind InterDigital's positive 4.82% 1.

Recent Developments and Market Position

C3.ai recently expanded its partnership with Capgemini on November 20, aiming to accelerate the delivery of Enterprise AI solutions across various industries. This collaboration is expected to help clients enhance efficiency, productivity, and reduce costs 2.

The company's market capitalization is below the industry average, indicating its relatively smaller size compared to peers. This could be attributed to factors such as perceived growth potential or operational scale 1.

As C3.ai prepares to release its earnings, investors and analysts will be closely watching for signs of improved profitability, revenue growth, and any forward-looking guidance that could impact the company's stock performance and market position in the competitive AI industry.

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