C3.Ai Inc (NYSE:AI) shares are trading lower Tuesday on the heels of the company’s second-quarter financial results. Multiple analysts adjusted price targets following the print. Here’s what you need to know.

What Happened: C3.AI reported second-quarter revenue of $93.34 million, beating analyst estimates of $91.02 million, according to Benzinga Pro. The company reported a quarterly loss of 6 cents per share, beating analyst estimates for a loss of 16 cents per share.

Shares initially raced higher on the release, likely buoyed by the company’s new global alliance agreement with Microsoft Corp (NASDAQ:MSFT). C3.AI said it signed a new agreement with an initial five-and-a-half-year term with Microsoft to accelerate growth in enterprise AI.

“It is difficult to overstate the potential of the Microsoft–C3 AI strategic alliance. By establishing C3 AI as a preferred AI application provider on Azure and creating a Microsoft-scale go-to-market engine, we’re making it easy for businesses to adopt and deploy C3 AI applications. This is an inflection point for Enterprise AI, driving growth,” said Thomas Siebel, chairman and CEO of C3.AI.

C3.AI said it expects third-quarter revenue to be in the range of $95.5 million to $100.5 million versus estimates of $97.57 million. The company expects full-year revenue to be between $378 million and $398 million versus estimates of $382.57 million, per Benzinga Pro.

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Shares reversed course in early trading Tuesday despite multiple price target increases rolling in. Multiple analysts maintained Neutral or Underweight ratings. Here’s a look at the analyst reactions to earnings.

• Piper Sandler analyst Arvind Ramnani maintained C3.AI with a Neutral and raised the price target from $24 to $42.

• Needham analyst Mike Cikos reiterates C3.ai with a Hold rating.

• Morgan Stanley analyst Sanjit Singh maintained C3.AI with an Underweight and raised the price target from $21 to $32.

• Northland Capital Markets analyst Michael Latimore maintained C3.AI with an Outperform and raised the price target from $35 to $45.

AI Price Action: C3.AI shares were down 9.78% at $37.61 at the time of publication, according to Benzinga Pro.

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