Stock Track | C3.ai Soars 5.33% on Strong Q2 Beat, Raised Outlook, and Microsoft AI Alliance Amid Bullish Sector Sentiment

Stock Track
10 Dec 2024

C3.ai, Inc. (AI) shares skyrocketed over 5% on Monday in the pre-market session, riding on the company's impressive fiscal second-quarter results and an upward revision to its full-year revenue guidance.

The enterprise artificial intelligence software provider reported quarterly revenue of $94.3 million, surpassing analysts' expectations of $91 million. On the bottom line, C3.ai posted an adjusted loss of just 6 cents per share, significantly better than the consensus estimate of a 16-cent loss.

Buoyed by the robust Q2 performance, C3.ai raised its fiscal 2025 revenue guidance to a range of $378 million to $398 million, up from its prior forecast of $370 million to $395 million. This outlook surpassed analysts' expectations of $382.57 million for the full year.

Additionally, C3.ai announced a new global alliance with Microsoft, positioning itself as a preferred AI application provider on Azure and creating a Microsoft-scale go-to-market engine. This strategic partnership is expected to accelerate the adoption of C3.ai's enterprise AI solutions.

The stellar quarterly performance and optimistic outlook underscore the growing demand for C3.ai's enterprise AI solutions as businesses across various industries increasingly adopt artificial intelligence to streamline operations and drive growth. Moreover, the broader AI sector is witnessing a surge in investor confidence, fueled by the launch of OpenAI's paid ChatGPT Pro service and President-elect Donald Trump's plans to prioritize AI technological development under his administration.

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