Shares of C3.ai (AI) plummeted in after-hours trading after the software company reported earnings for its first quarter of Fiscal Year 2025. Earnings per share came in at -$0.05, which beat analysts’ consensus estimate of -$0.13 per share.
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Sales increased by 20.5% year-over-year, with revenue hitting $87.2 million. This also beat analysts’ expectations of $86.943 million.
Looking forward, management now expects revenue and adjusted earnings for Q2 2025 to be in the ranges of $88.6 million to $93.6 million and -$26.7 million to -$34.7 million, respectively. For reference, analysts were expecting $91.08 million in revenue. This essentially means that the revenue guidance met expectations, which didn’t enthuse investors.
Hedge Funds Are Very Negative
When it comes to “smart money,” money managers don’t seem to be all that confident in AI stock. Indeed, hedge funds decreased their holdings in the stock by 2.1 million shares in the past three months. As a result, they have a Very Negative confidence signal, as indicated by the graphic below.
What Is the Price Target for AI?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on C3.ai stock based on one Buy and one Hold assigned in the past three months. After a 25% decline in its share price over the past year, the average C3.ai price target of $35 per share implies 49.25% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
