"Hot stocks in AI software" C3.ai (AI.US) Q2 performance exceeds expectations, raises fiscal year revenue guidance.

C3.ai (AI.US) exceeded expectations in its second quarter and raised its revenue forecast for the fiscal year 2025, thanks to strong demand for the company's enterprise artificial intelligence software tools which help simplify workflows. According to data compiled by LSEG, Q2 revenue was $94.3 million, up 29% from the same period last year, higher than analysts' estimate of $91 million. After adjustments, the company reported a loss of 6 cents per share, while analysts had expected a loss of 16 cents per share. Subscription revenue grew by 22% to $81.2 million, while professional services revenue increased by 94% year-on-year to $13.2 million. The company now expects fiscal year revenue to be between $378 million and $398 million, up from the previous forecast of $370 million to $395 million. Analysts had previously predicted the company's annual revenue to reach $382.6 million. In addition, for the third quarter, C3.ai expects revenue to be between $95.5 million and $105 million, with the mid-point of $98 million slightly higher than analysts' estimate of $97.5 million. Based in Redwood City, California, the company provides software to enterprises for building and developing artificial intelligence applications in various industries including energy, manufacturing, financial services, and healthcare. C3.ai has benefited from the growing interest of enterprise customers in artificial intelligence, and the company has been introducing products with generative artificial intelligence. The company stated that this quarter it completed 15 trials focused on generative artificial intelligence, including trials with automaker Rolls-Royce and the U.S. Navy. Following the announcement of its performance, the company's stock price rose by 14.8% in after-hours trading. So far this year, the company's stock price has increased by over 45%, partially due to its expanding partnership with cloud giant Microsoft Corporation (MSFT.US). C3.ai will become the "preferred" provider of artificial intelligence applications on Microsoft Corporation's Azure cloud.