Why C3.ai Stock Dropped After Earnings Today
C3.ai (NYSE: AI) stock, which makes applications for artificial intelligence (AI), reported its fiscal second-quarter 2025 earnings last night and outperformed expectations, leading to a series of analyst price target hikes. Despite the good news and the positive reaction on Wall Street, investors are selling C3 stock, which as of 10:15 a.m. ET is down 4.2%.
C3.ai beat expectations on both top and bottom lines in the quarter ended Oct. 31, reporting $94.3 million in fiscal Q2 sales (Wall Street forecast $91 million), and losing $0.06 per share, rather than the expected loss of $0.16 per share.
So far, so good. But here's where the news turns bad. It seems C3's $0.06 loss that "beat" earnings was only a non-GAAP (adjusted) number, meaning it was not calculated according to generally accepted accounting principles (GAAP). C3's GAAP loss for the quarter was a massive $0.52 per share. That was nearly as bad as its loss of $0.59 per share one year ago, and worse than the company's $0.50-per-share loss last quarter.
Source Fool.com
