Shares of C3.ai (NYSE: AI) surged 16.25% in pre-market trading on Thursday, following the company's 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 provider's strong performance and positive 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 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 boosted investor confidence in C3.ai's potential to capitalize on the growing demand for enterprise AI solutions.