C3.ai, Inc. (NYSE:AI) is a prominent player in the enterprise AI application software sector. The company focuses on providing AI solutions that help businesses enhance their operations. Despite its innovative offerings, C3.ai faces stiff competition from other tech giants in the AI space. The company recently reported its financial results for the fiscal first quarter ending July 31, 2025.
On September 3, 2025, C3.ai reported an earnings per share (EPS) of -$0.37, slightly better than the estimated -$0.38. This marks a significant increase in losses compared to the previous year's loss of $0.05 per share. Despite the negative EPS, the company achieved an earnings surprise of 2.63%, as highlighted by Zacks. In the previous quarter, C3.ai also reported a smaller loss than expected, resulting in a 20% earnings surprise.
C3.ai's revenue for the quarter was approximately $70.3 million, falling short of the estimated $93.9 million. This represents a decline from the $87.21 million reported in the same quarter the previous year. The revenue shortfall led to a 14% drop in the company's share price during extended trading. Despite this, C3.ai has exceeded consensus revenue estimates three times in the last four quarters.
The company's financial metrics reveal some challenges. C3.ai has a price-to-sales ratio of 5.61 and an enterprise value to sales ratio of 5.19, indicating the market's valuation of its sales. However, the negative earnings yield of -12.99% and the enterprise value to operating cash flow ratio of -48.76 suggest potential issues in generating cash flow from operations. In a significant leadership change, C3.ai appointed Stephen Ehikian as the new CEO, effective September 1. Ehikian, a seasoned tech executive, has previously built two companies acquired by Salesforce. He expressed confidence in C3.ai's position in the AI landscape, highlighting the company's unmatched platform and applications.
