Shares of C3.ai (NYSE: AI) surged 24.43% in pre-market trading on Thursday, following the company's release of better-than-expected fourth-quarter fiscal year 2025 results and a series of positive announcements. The artificial intelligence software provider's strong performance and optimistic outlook have reignited investor confidence in its growth potential within the competitive AI market.

C3.ai reported a smaller-than-anticipated loss of $0.16 per share for the quarter ended April 30, beating analyst expectations of a $0.20 loss. Revenue for the quarter reached $108.7 million, surpassing the estimated $107.73 million and marking a 25.53% increase from the same period last year. Notably, subscription revenue, a key metric for the company, grew by 9% year-over-year to $87.3 million.

Adding to the positive sentiment, C3.ai announced the renewal and expansion of its strategic partnership with Baker Hughes through June 2028. This collaboration aims to accelerate AI-driven transformation in the energy and industrial sectors. Furthermore, the company revealed that the U.S. Air Force Rapid Sustainment Office has raised C3.ai's contract ceiling to $450 million through October 2029, a significant increase from the initial $100 million.

Looking ahead, C3.ai provided an optimistic outlook for the first quarter and full fiscal year 2026. The company anticipates Q1 revenue between $100.0 million and $109.0 million, with full-year revenue projected to range from $447.5 million to $484.5 million. This guidance, coupled with the strong quarterly results and expanded partnerships, has boosted investor confidence in C3.ai's potential to capitalize on the growing demand for enterprise AI solutions.