What Happened?
Shares of artificial intelligence (AI) software company C3.ai (NYSE: AI) jumped 26.3% in the afternoon session after the company reported strong first quarter 2025 results: Revenue and adjusted operating income both beat in the quarter.
Looking forward, revenue guidance for next quarter was roughly in line with Wall Street's estimates, but operating income guidance for the period was nicely above expectations.
Finally, "C3 AI and Baker Hughes renewed and expanded their strategic partnership through a multi-year agreement", and this is a relief to the market as it is the largest partnership for the software company. Overall, this was a solid quarter.
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What The Market Is Telling Us
C3.ai’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. But moves this big are rare even for C3.ai and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 6.3% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
C3.ai is down 15.9% since the beginning of the year, and at $29.15 per share, it is trading 32.1% below its 52-week high of $42.94 from December 2024. Investors who bought $1,000 worth of C3.ai’s shares at the IPO in December 2020 would now be looking at an investment worth $315.23.
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