C3.ai's (AI) fiscal Q4 results modestly exceeded expectations on both revenue and adjusted earnings, supported by growth in subscription revenue, a sharp rise in partner-driven bookings, and rising demand for generative AI products, Wedbush Securities said in a note on Thursday.

The professional services segment delivered a gross margin of 88.5%, helping offset the impact of a higher mix of initial deployments, which typically carry lower subscription margins, the firm noted.

Wedbush said C3.ai's fiscal 2026 guidance was broadly in line with Wall Street estimates, as the company continues to invest in R&D and sales while aiming to expand in both enterprise and federal AI markets.

"We believe that C3 is starting to gain significant traction across the enterprise AI space by strengthening its partner ecosystem to drive growth while looking to take further share within the agentic AI buildout taking place," the firm added.

Wedbush lowered its price target on the company's stock to $35 from $45 while maintaining an outperform rating.

Shares of C3.ai were up more than 27% in recent trading.

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