C3.ai delivered a strong QQ2 2025 performance, highlighted by 29% year-over-year revenue growth to $94.3 million and a 70% non-GAAP gross margin, supported by a high mix of Subscription and Prioritized Engineering Services (PES). The quarter underscored the strategic inflection created by the expanded Microsoft Azure alliance, positioning C3.ai to scale its enterprise AI platform through Azure’s global sales force and Fortune 500 footprint. Management signaled that a material acceleration in bookings and pilots should follow from the alliance, though near-term profitability will be pressured by deliberate investments in sales, marketing, and the broader pilot-to-production transition. The company remains well-capitalized with a substantial cash and marketable securities balance (~$730 million) and is guiding toward a positive free cash flow in Q4 FY25, after a near-term negative print in Q3. The combination of enterprise AI deployment in production, a broad partner ecosystem, and a patent-backed agentic AI framework positions C3.ai to sustain above-market growth as AI adoption deepens across verticals and geographies.