Share prices of C3.ai (NYSE: AI) sank after the enterprise artificial intelligence (AI) software company's subscription revenue growth in its latest quarter disappointed investors. The stock is now down nearly 26% this year.

Let's take a closer look at the tech company's recent earnings report and see if the sell-off is an overreaction.

For its fiscal 2025 Q1, C3.ai saw its revenue climb 21% year over year to $87.2 million, which was a slight acceleration from the 20% growth it saw last quarter. The revenue total came in between the $84 million to $89 million that management had previously forecast. Subscription revenue rose 20% year over year to $74.5 million, but that total was below the 41% growth C3.ai saw in Q1. Subscription revenue growth had accelerated each quarter over the past year, so the big step down in growth was a disappointment.

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Source Fool.com