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Key Takeaways

• C3.ai reported fiscal 2025 third-quarter revenue growth that was below the gains it posted in the previous quarter, sending shares lower.

• The enterprise artificial intelligence technology provider's loss was much less than expected by analysts surveyed by Visible Alpha.

• C3.ai said it anticipates moderation in gross margins and operating margin.

Shares of C3.ai (AI) fell 6% Thursday, a day after the enterprise artificial intelligence (AI) technology firm's revenue growth slowed.

The company reported fiscal 2025 third-quarter revenue rose 26% year-over-year to $98.8 million, slightly above forecasts of analysts surveyed by Visible Alpha. However, the gain was less than the 29% rise in the second quarter. Subscription revenue was up 22% to $85.7 million, also slightly better than expected. C3.ai's adjusted loss of $0.12 was about half of estimates.

The company anticipates that it will see some moderation in gross margins because of an increase in mix of more costly pilots, according to a transcript of the earnings call provided by AlphaSense. In addition, it expects some moderation in its operating margin in the near term because of more investments in the business.

C3.ai shares jumped at the end of 2024, but have steadily declined since. They've now lost about 17% of their value over the past year.

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