Shares of C3.ai (AI) surged 12.12% in after-hours trading on Wednesday, following the release of better-than-expected fourth-quarter fiscal year 2025 results and the announcement of an expanded partnership with Baker Hughes. The artificial intelligence software company outperformed analyst estimates on both earnings and revenue, while also providing an optimistic outlook for the coming quarters.

C3.ai reported a loss of $0.16 per share for the quarter ended April 30, beating the analyst consensus estimate of $0.20 per share. The company's revenue climbed to $108.7 million, a 25.53% increase from the same period last year and slightly above the expected $107.73 million. 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 and Baker Hughes announced the renewal and expansion of their joint venture agreement through June 2028. This strategic partnership aims to accelerate AI-driven transformation in the energy and industrial sectors, having already generated over half a billion dollars in revenue since its inception in 2019. The expanded collaboration is expected to drive further growth and market penetration for C3.ai in the coming years.

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 partnership, has reignited investor confidence in C3.ai's growth potential in the competitive AI software market.