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C3.ai AI shares have gained 12% in the trailing six-month period compared with the Zacks Computer & Technology sector’s return of 6.6%.
The outperformance can be attributed to strong traction in its enterprise AI applications, particularly for C3 Generative AI.
In the fiscal second quarter of 2025, C3.ai closed 58 agreements, 36 of which involved pilot projects. This represents a notable increase in demand for its Enterprise AI and Generative AI offerings.
C3.ai Shares Beat Sector
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AI’s Strong Partner Base Boosts Prospects
C3.ai has been one of the prominent AI stocks in recent times thanks to strong demand for C3 Generative AI solutions and an expanding partner base that includes the three big cloud providers Amazon AMZN, Alphabet GOOGL and Microsoft MSFT.
Partnerships with hyperscalers like Google Cloud, Amazon Web Services (AWS), and Microsoft Azure have driven 62% of the company’s agreements in the second quarter of fiscal 2025. This indicates that C3.ai’s partner network is critical in driving revenues and adopting its solutions.
In the fiscal second quarter of 2025, C3.ai, in collaboration with Alphabet’s cloud business Google Cloud, closed 20 agreements, marking a 180% year-over-year increase. It was featured at Google’s Public Sector Summit in Washington, DC, while jointly hosting six executive roundtable discussions across North America and LATAM.
C3.ai is also benefiting from its expanding partnership with Microsoft. It leverages Microsoft’s Azure platform to enhance its AI offerings and reach a broader customer base across sectors.
AI Expands U.S. Government Partnerships With AI Solutions
C3.ai continues to build momentum in the public sector, particularly within the U.S. government.
Building on this momentum in December 2024, C3.ai, in partnership with ECS, secured a task order from the U.S. Army’s Program Manager for Intelligence Systems & Analytics to modernize information collection management processes.
The task order focuses on deploying the AI-driven C3 AI Decision Advantage application to optimize intelligence operations and reduce soldier workload.
The company’s federal business also saw strong growth in the second quarter of fiscal 2025, securing new and expanded agreements with the U.S. Department of Defense, the U.S. Air Force, the U.S. Navy, the U.S. Army, the U.S. Marine Corps, the Defense Logistics Agency, the Chief Digital Artificial Intelligence Office, and the National Science Foundation.
AI Offers Solid Top-Line Growth Guidance
C3.ai’s strong adoption of C3 Generative AI solutions and increased demand for its Enterprise AI software has been noteworthy.
For third-quarter fiscal 2025, C3.ai expects revenues between $95.5 million and $100.5 million.
For fiscal 2025, C3.ai expects revenues between $378 million and $398 million.