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On Thursday, JMP analysts maintained a Market Outperform rating and a $50.00 price target for C3.ai shares (NYSE:AI). The decision follows C3.ai’s announcement of the renewal of its pivotal partnership with Baker Hughes (NASDAQ:BKR) and its fourth-quarter fiscal year 2025 results, which surpassed expectations. According to InvestingPro data, C3.ai maintains strong financial flexibility with a current ratio of 6.74, indicating robust liquidity. The company reported a non-GAAP EPS of ($0.16), beating the consensus estimate of ($0.20), and revenue of $109 million, slightly above the consensus forecast of $108 million. This represented a year-over-year increase of 26%, although it was consistent with the previous quarter’s figures.
C3.ai’s subscription revenue reached $87 million, which, despite being below the consensus estimate of $96 million, marked a 9% year-over-year growth. This performance contributes to the company’s impressive 28% revenue CAGR over the past five years, as reported by InvestingPro. However, this was a decrease from the 22% growth observed in the previous quarter. When including prioritized engineering services revenue, the growth rate was 22%. Additionally, the company achieved a free cash flow of $10 million, showing improvement from a loss of ($22 million) in the last quarter, but still falling short of the expected $18 million.
The company’s stock experienced a surge of approximately 12% in after-market trading. This uptick came after the stock had declined by 33% year-to-date, in contrast to the flat year-to-date performance of the S&P 500 and Russell 3000 indices.
JMP’s continued confidence in C3.ai is attributed to the company’s latest financial outcomes and the strategic renewal of its partnership with Baker Hughes, which is considered crucial for the company’s ongoing success. Despite some areas where performance did not meet consensus expectations, the overall positive results and partnership renewal have contributed to the analyst firm’s optimistic outlook on the company’s stock. The company maintains a healthy balance sheet with minimal debt, as evidenced by its debt-to-equity ratio of just 0.01. For comprehensive analysis including Fair Value estimates and detailed financial health scores, investors can access the full C3.ai Pro Research Report, available exclusively on InvestingPro.
In other recent news, C3.ai Inc. reported better-than-expected earnings for Q4 2025, with a loss per share of $0.16, beating the forecast of $0.20. The company’s revenue reached $108.7 million, surpassing expectations and marking a 26% year-over-year increase. Subscription revenue also saw a 9% rise, amounting to $87.3 million. Additionally, C3.ai renewed and expanded its strategic partnership with Baker Hughes, a collaboration that has generated significant revenue in the oil and gas sector since 2019. This renewal is expected to bolster their joint efforts in enhancing operational efficiencies across various markets. The company also announced guidance for Q1 FY2026, with projected revenue between $100 million and $109 million. Looking further ahead, C3.ai anticipates achieving non-GAAP profitability in the second half of FY2027. Analyst firm Needham noted the expanded relationship with Baker Hughes and highlighted the broader revenue guidance range for FY2026, reflecting potential geopolitical and market risks.
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