C3.ai Shares Jump 7.8% on $500M Missile Defence Agency AI Deal
C3.ai shares rose 7.8% after its role as a 'digital nervous system' for modern warfare surfaced via a $500 million AI modeling deal with the Missile Defence Agency. The jump comes after Q4 results showing revenue fell 46.1% to $53.26 million and a GAAP loss of $0.94 per share.
1. Stock Reaction
Shares of C3.ai jumped 7.8% in the afternoon session as investors focused on its expanding defense footprint. The move marks another significant daily swing for the stock, which has recorded 35 moves over 5% in the past year.
2. Defense Contract Details
The company secured a $500 million agreement with the Missile Defence Agency to deploy its AI platform for modeling emerging missile threats. C3.ai’s technology is positioned as the ‘digital nervous system’ underpinning modern drone and missile warfare scenarios.
3. Recent Financial Results
In its fourth quarter, C3.ai reported revenue of $53.26 million, a 46.1% year-over-year drop, and a GAAP loss of $0.94 per share, missing analyst forecasts. The company projected first-quarter revenue of around $50 million, well below the $78 million consensus estimate.
4. Stock Performance Highlights
C3.ai is down 37.8% year to date and trading 70.7% below its 52-week high of $29.16 from July 2025. A $1,000 investment five years ago would now be worth just $86.85, underscoring the stock’s long-term volatility.