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MCLEAN, Va.--(BUSINESS WIRE)---- $BBAI--BigBear.ai (NYSE: BBAI), a specialized defense technology company, providing mission-ready AI for national security and trade & travel customers, today announced that it will publish its second quarter earnings release on Thursday, July 30 at approximately 4:15 pm ET and will host an earnings call at 4:30 pm ET. The earnings release will be accessible on the Company's investor relations website: https://ir.bigbear.ai. Additional details on the earnings call will.

BigBear.ai Holdings, Inc. (BBAI - Free Report) closed at $2.84 in the latest trading session, marking a -2.74% move from the prior day. This change lagged the S&P 500's 1.01% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.4%.

Shares of the company witnessed a loss of 25.51% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.73%, and the S&P 500's gain of 0.32%.

Analysts and investors alike will be keeping a close eye on the performance of BigBear.ai Holdings, Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.04, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $36.37 million, indicating a 12.01% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.25 per share and revenue of $146.59 million, indicating changes of +69.51% and +14.82%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for BigBear.ai Holdings, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BigBear.ai Holdings, Inc. is holding a Zacks Rank of #3 (Hold) right now.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

MCLEAN, Va.--(BUSINESS WIRE)---- $BBAI--BigBear.ai (NYSE: BBAI), a specialized defense and security technology company providing mission-ready AI, today announced a significant expansion of its generative AI platform, introducing new capabilities designed to give Department of War (DoW) mission teams greater flexibility and control over where generative AI runs, how models are accessed, and how generative AI capabilities are procured. The expanded platform incorporates new air-gapped hardware, an additio.

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SummaryBigBear.ai’s Q1 revenue remained nearly flat, while operating losses, adjusted EBITDA, and operating cash burn worsened.Ask Sage improved gross margin and could support a higher-margin software mix, but the transition remains unproven.Backlog growth and more than $400 million in net cash give BigBear.ai time to execute, despite substantial shareholder dilution.BigBear.ai trades at a premium valuation despite weaker revenue growth, gross margins, and cash flow than its AI software peers.My $2.75 base-case price target implies roughly 16% downside, supporting a sell rating. Dragos Condrea/iStock via Getty Images

Investment Thesis I assign BigBear.ai (BBAI) a sell rating because the company's current valuation is already assuming a successful shift toward higher-margin software revenue that has not been proven. The company's backlog increased, their balance

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

BigBear.ai Holdings, Inc. (BBAI - Free Report) closed the most recent trading day at $3.27, moving -1.51% from the previous trading session. This move lagged the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.

Prior to today's trading, shares of the company had lost 19.81% lagged the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.

Market participants will be closely following the financial results of BigBear.ai Holdings, Inc. in its upcoming release. In that report, analysts expect BigBear.ai Holdings, Inc. to post earnings of -$0.04 per share. This would mark year-over-year growth of 33.33%. Alongside, our most recent consensus estimate is anticipating revenue of $36.37 million, indicating a 12.01% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.25 per share and revenue of $146.59 million. These totals would mark changes of +69.51% and +14.82%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BigBear.ai Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, BigBear.ai Holdings, Inc. is carrying a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 42% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

MCLEAN, Va.--(BUSINESS WIRE)---- $BBAI--BigBear.ai (NYSE: BBAI), a specialized defense and security technology company providing mission-ready AI, today announced that Pangiam Threat Detection has received Dutch national approval from the Netherlands' National Coordinator for Counterterrorism and Security following testing by TNO, the Netherlands Organisation for Applied Scientific Research, an internationally recognized applied research institute and aviation security test center headquartered in The Hag.

Key Takeaways BigBear.ai won airport security contracts of $7 million at Chicago O'Hare and Dallas-Fort Worth.BBAI is expanding its trade and travel portfolio with AI-powered cargo inspection and border solutions.Growing backlog and higher-margin AI software support BigBear.ai's long-term expansion strategy. BigBear.ai Holdings, Inc. (BBAI - Free Report) is expanding beyond its traditional defense roots by tapping into a fast-growing opportunity: AI-powered airport security. As airports seek to reduce passenger wait times while strengthening security, the company's biometric identity and AI-based screening technologies could become an important growth engine.

The company's recent contract wins highlight this momentum. During the first quarter of 2026, BigBear.ai secured deployments at Chicago O'Hare and Dallas-Fort Worth airports, worth a combined $7 million. These projects utilize their veriScan and TrueFace platforms to accelerate identity verification, enabling passengers to move through checkpoints more efficiently without sacrificing security. Management noted that such solutions are particularly valuable as airports face labor shortages and rising travel demand.

Beyond passenger screening, BigBear.ai is broadening its trade and travel portfolio through CargoSeer, whose AI-powered platform helps customs agencies inspect cargo, detect fraud and improve border security. This creates opportunities to serve multiple segments of the transportation ecosystem rather than relying solely on airport checkpoint deployments.

The company's financial position also provides support for its expansion plans. First-quarter backlog climbed 14% sequentially to $281.9 million, while higher-margin software offerings, including Ask Sage, continued to improve the revenue mix. Although BigBear.ai remains unprofitable, while investing in growth. The increasing exposure to AI-driven airport security and border management solutions positions it to benefit from long-term government and transportation infrastructure spending. If adoption of frictionless security accelerates, this market could become an increasingly meaningful contributor to the company's future growth.

How Does BigBear.ai Stack Up Against Its Peers?BigBear.ai competes with several established defense and security technology companies that are expanding their AI and biometric capabilities for airports and border security. Leidos Holdings (LDOS - Free Report) is a leading player, offering advanced airport checkpoint screening systems, biometric identity verification and automated security solutions used by airports and government agencies worldwide. Its scale, long-standing customer relationships and broad security portfolio make Leidos Holdings a formidable competitor.

Another key rival is CACI International (CACI - Free Report) , which provides AI-powered biometrics, border security, intelligence and mission-support solutions to U.S. federal agencies. CACI International's deep expertise in homeland security and data analytics positions it well to benefit from rising investments in frictionless passenger screening and border management.

Compared with these larger peers, BigBear.ai differentiates itself through specialized AI platforms such as veriScan, TrueFace and CargoSeer, which are designed to improve passenger identity verification, cargo inspection and customs operations. While BBAI trails LDOS and CACI in scale and financial resources, the recent airport contract wins and growing focus on trade and travel could help it capture a larger share of the expanding AI-driven airport security market.

BBAI’s Price Performance, Valuation & EPS Estimate TrendShares of BBAI have gained 2.6% over the past three months, outperforming the Zacks Computers - IT Services industry, as shown below.

BBAI’s 3-Month Price Performance
Image Source: Zacks Investment Research

BBAI stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 11.1, as evidenced by the chart below.

P/S Ratio (F12M)
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BBAI’s 2026 loss per share has narrowed in the past 60 days, as shown below. The estimated figure indicates a narrower loss from the year-ago loss of 82 cents per share.

EPS Trend of BBAI
Image Source: Zacks Investment Research

BBAI’s Zacks RankBigBear.ai currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

As the artificial intelligence (AI) landscape matures in 2026, investors are weighing the divergent paths of BigBear.ai (BBAI +0.14%) and SoundHound AI (SOUN +4.87%). Choosing between these two players requires balancing government contract stability against rapid commercial expansion.

BigBear.ai specializes in decision intelligence and predictive analytics, primarily serving the defense and intelligence communities. SoundHound AI focuses on conversational voice technology, powering interactive experiences in cars and restaurants. Both companies represent different strategies for capturing value in the evolving software market.

The case for BigBear.aiBigBear.ai focuses on providing mission-ready AI solutions, including predictive analytics and computer vision, to complex organizations. The company targets high-stakes environments where its technology can prove most valuable, including homeland security and supply chain management. While it recently launched an AI cargo security platform with the Panama Transshipment Group, its core remains U.S. public sector contracts.

BigBear.ai relies heavily on U.S. government sector contracts, which account for a substantial portion of its total business. In 2025, revenue reached $127.7 million, a 19.3% decline from the previous year. The company reported a net loss of nearly $293.9 million for the period.

As of its December 2025 balance sheet, the debt-to-equity ratio is 0.2x. This ratio measures total debt relative to shareholders’ equity, indicating how much a company relies on borrowed funds. The current ratio, which gauges the ability to cover short-term debts with short-term assets, is approximately 1.8x. Free cash flow for 2025 was negative $42.5 million, representing cash from operations minus capital expenditures.

The case for SoundHound AISoundHound AI builds conversational AI experiences for businesses across digital and physical channels. Its technology powers millions of products, with a heavy presence in the automotive and restaurant sectors. A key development is the expansion of its partnership with Casey’s, which now deploys AI voice-ordering agents across more than 2,600 locations. The company is also scaling its enterprise footprint through its planned $100 million acquisition of LivePerson.

In 2025, SoundHound AI reported revenue of approximately $168.9 million, up nearly 99.4% over the prior year. The company recorded a net loss of $14 million. This resulted in a net margin of approximately-8.3%, indicating the company is nearing the break-even point.

According to its December 2025 balance sheet, the debt-to-equity ratio is 0.3x. The company maintains a current ratio of nearly 4.6x, suggesting a strong liquidity position for its current operations. Free cash flow for 2025 was negative $99 million. This figure represents the cash remaining after the company pays for its operating costs and capital investments.

Risk profile comparisonBigBear.ai faces significant legal and financial reporting risks, including a material class action lawsuit and the requirement to restate multiple years of financial statements. The company also faces high revenue concentration, as customers contributing over 10% of revenue accounted for 51% of total revenue in 2025. Furthermore, integration challenges from the Pangiam acquisition have previously led to goodwill impairment charges.

SoundHound AI has identified material weaknesses in its internal control over financial reporting related to recent acquisitions. Its aggressive acquisition strategy, including the pending acquisition of LivePerson, creates integration challenges and the potential for future asset impairments. The company also faces intense competition from large technology firms with vast resources, such as Microsoft, Amazon, and Alphabet.

Valuation comparisonBigBear.ai trades at a lower P/S ratio but faces declining revenue, while SoundHound AI maintains a higher valuation despite rapid growth. Both stocks lack a Forward P/E due to negative future earnings estimates.

MetricBigBear.aiSoundHound AISector BenchmarkForward P/En/an/a36.4xP/S ratio9.8x16.4xn/aSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Both companies face risks and challenges related to improving margins and profitability. However, SoundHound AI may offer higher upside over the long term.

Excluding acquisitions, SoundHound’s automotive and Internet of Things business grew 88% year over year last quarter. In addition to the restaurant industry, it serves many leading companies across the banking, airline, and telecommunications sectors.

BigBear.ai may have significant upside from these low share prices, but it seems to have a narrower market focus in national security, trade, and travel. Revenue has declined since 2021, falling from $145 million to $127 million on a trailing-12-month basis. Investors buying the stock are placing a big bet that the company will land lucrative contracts in the future, but that’s not a guarantee in a competitive market.

Meanwhile, SoundHound is already delivering steady revenue growth. Much of its growth over the last few years has come from acquisitions, but these are strategic deals that expand its capabilities. For example, the acquisition of LivePerson extends its customer base to hundreds of additional enterprise brands.

The main challenge for SoundHound is improving margins. There’s been no clear trend in its net income or free cash flow to indicate when it might turn the corner on the bottom line. The good news is that it is in a solid financial position, with its March 31, 2026, balance sheet showing $215 million in cash and no debt.

Both stocks are highly volatile without a clear near-term path to profitability. But SoundHound’s revenue growth and expanding customer base in the enterprise sector give the company an easier path to achieving scale, which could eventually lead to more consistent profits.

Key Takeaways BigBear.ai is reshaping around government-focused AI, with Q1 gross margin expanding to 34%.BBAI's Ask Sage won new contracts with NASA, Army intelligence and the Naval Research Laboratory.BigBear.ai trails Palantir and C3.ai in scale but may carve out a niche in government GenAI. BigBear.ai Holdings, Inc. (BBAI - Free Report) has spent the past year reshaping its business around government-focused artificial intelligence, and first-quarter 2026 results suggest that strategy is gaining traction. While first-quarter revenues slipped 1% year over year to $34.4 million, the quality of revenue improved as higher-margin generative AI software and platform offerings drove gross margin expansion of 1,278 basis points to 34%. The company also reaffirmed its 2026 revenue guidance of $135-$165 million.

Government GenAI Strategy Is Taking ShapeBigBear.ai is increasingly positioning itself as a pure-play government GenAI company through its growing Ask Sage platform and deepening relationships with U.S. federal agencies. During the quarter, Ask Sage secured new contracts with NASA, the Army Intelligence and Security Command and the Naval Research Laboratory, expanding its footprint across mission-critical national security applications. Management noted that these wins are accelerating the company's transition from lower-margin services toward recurring technology revenue.

The broader government pipeline also appears encouraging. BigBear.ai signed a classified $53 million sole-source intelligence contract, increased backlog 14% sequentially to $281.9 million and continues to benefit from stronger demand across homeland security, defense and trade and travel markets. The company is also pursuing additional Department of Homeland Security opportunities following recent budget and leadership developments, while integrating Ask Sage and CargoSeer to expand its AI capabilities.

Financial flexibility has improved as well. BigBear.ai ended the quarter with $431.5 million in cash and investments after substantially reducing debt, giving it resources to invest in product development and potential acquisitions. However, investors should recognize that adjusted EBITDA remained negative and revenue growth has yet to fully reflect the expanding pipeline. If Ask Sage continues winning federal GenAI programs and technology revenue becomes a larger share of sales, BigBear.ai could increasingly emerge as one of the few publicly traded AI companies focused almost exclusively on government generative AI.

How Does BigBear.ai Compare With Government AI Rivals?BigBear.ai faces competition from Palantir Technologies (PLTR - Free Report) and C3.ai (AI - Free Report) , two companies that are also expanding their presence in government artificial intelligence.

Palantir has built a dominant position across U.S. defense, intelligence and federal civilian agencies through its Gotham and Artificial Intelligence Platform offerings. Palantir also benefits from a much larger installed customer base and greater financial resources, enabling it to scale GenAI deployments across government organizations.

Meanwhile, C3.ai continues to strengthen its federal business through enterprise AI applications for defense, aerospace and public-sector customers. C3.ai is increasingly integrating generative AI capabilities into its platform while leveraging long-standing government relationships to win new contracts.

However, unlike these broader enterprise AI providers, BigBear.ai remains more narrowly focused on mission-ready AI for national security, border protection and defense operations. That specialization, together with its growing Ask Sage platform, could help BigBear.ai carve out a differentiated niche as a government-focused GenAI provider, although it still trails Palantir and C3.ai in scale, profitability and commercial reach.

BBAI’s Price Performance, Valuation & EPS Estimate TrendShares of BBAI have trended 5.9% upward over the past three months, outperforming the Zacks Computers - IT Services industry, as shown below.

BBAI’s 3-Month Price Performance

Image Source: Zacks Investment Research

BBAI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 11.74, as evidenced by the chart below.

BBAI’s P/S Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BBAI’s 2026 loss per share has narrowed in the past 60 days, as shown below. The estimated figure indicates a narrower loss from the year-ago level of 82 cents per share.

EPS Trend of BBAI

Image Source: Zacks Investment Research

Key Takeaways BigBear.ai posted flat Q1 2026 revenues, while gross margin rose to 34% from 21.3%.BBAI's backlog grew 14% to $281.9M, supported by AI and classified contract wins.SG&A expenses climbed 28.6% as BigBear.ai invested in talent, integration and growth. BigBear.ai Holdings, Inc. (BBAI - Free Report) is moving aggressively to establish itself as a leading provider of mission-ready Artificial Intelligence solutions, but its first-quarter 2026 financial results raise an important question: Can it sustain rapid innovation without letting expenses outpace growth?

The company’s first-quarter 2026 results highlighted both the promise and the challenges of its AI transformation. Revenues of $34.4 million were relatively flat year over year, but gross margin expanded a whopping 1,270 basis points to 34% from 21.3% a year ago. The improvement was driven by a richer mix of higher-margin AI software offerings, particularly following the acquisition of Ask Sage, a generative AI platform tailored for government and defense customers.

BigBear.ai continues to invest heavily in expanding its AI capabilities. During the first quarter of 2026, Ask Sage secured contracts with NASA, the Army Intelligence & Security Command and the Naval Research Laboratory, while the company also won a $53 million classified intelligence contract. Management has further aligned its technology and go-to-market teams around growth opportunities in national security and trade-and-travel markets. The company’s backlog grew 14% to $281.9 million as of the first quarter of 2026, from $248.1 million as of the fourth quarter of 2025.

However, these growth initiatives come at a cost. Selling, general and administrative (SG&A) expenses climbed 28.6% to $29.2 million from $22.7 million a year ago, reflecting integration expenses, talent investments and increased commercialization efforts. Research and development spending also rose as the company accelerated product innovation. Nonetheless, the good news is that BBAI’s strengthened balance sheet, including more than $431 million in cash and investments, provides ample resources to support its expansion strategy.

While rising operating expenses remain a concern, BigBear.ai’s ability to convert AI innovation into scalable, higher-margin revenue streams will ultimately determine whether its investment-heavy approach delivers sustainable shareholder value.

BigBear.ai, Palantir & C3.ai: Innovation Meets ProfitsBigBear.ai is benefiting from accelerating enterprise and government demand for Artificial Intelligence, while facing notable competition from renowned names in the same space, including Palantir Technologies Inc. (PLTR - Free Report) and C3.ai, Inc. (AI - Free Report) . But each firm is pursuing profitability expansion through different strategies.

Palantir Technologies continues to capitalize on surging demand for its Artificial Intelligence Platform (AIP), combining data integration, operational analytics and AI deployment capabilities to drive robust revenue growth and sustained profitability. Meanwhile, C3.ai is targeting enterprise AI adoption across industries, emphasizing consumption-based pricing, strategic cloud partnerships and a growing portfolio of generative AI applications.

While Palantir Technologies currently leads in scale and profitability, BBAI and C3.ai are prioritizing innovation and platform expansion to capture long-term opportunities in the rapidly evolving AI market.

BBAI Stock’s Price Performance & Valuation TrendShares of this Virginia-based AI-powered decision-intelligence solutions provider have moved up 9.5% in the past three months, outperforming the Zacks Computers - IT Services industry, but underperforming the Zacks Computer and Technology sector and the S&P 500 index.

Image Source: Zacks Investment Research

BBAI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 12.23, as evidenced by the chart below.

Image Source: Zacks Investment Research

EPS Trend of BBAIBBAI’s bottom-line estimates for 2026 and 2027 reflect a loss per share of 25 cents, which has narrowed over the past 60 days, and 19 cents, which has remained stable over the same time frame, respectively. However, the estimates for 2026 and 2027 indicate year-over-year growth of 69.5% and 24%, respectively.

Image Source: Zacks Investment Research

BigBear.ai Holdings, Inc. (BBAI - Free Report) ended the recent trading session at $3.96, demonstrating a -2.22% change from the preceding day's closing price. This change lagged the S&P 500's 0.57% loss on the day. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.

Prior to today's trading, shares of the company had gained 3.32% outpaced the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 2.14%.

The investment community will be closely monitoring the performance of BigBear.ai Holdings, Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.05, signifying a 16.67% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.24 million, up 8.52% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.25 per share and revenue of $144.31 million, indicating changes of +69.51% and +13.03%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for BigBear.ai Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BigBear.ai Holdings, Inc. is currently a Zacks Rank #4 (Sell).

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

BigBear.ai Holdings stock is showing downward bias. Where are BBAI shares going? BBAI Revenue And EPS Beat ExpectationsBigBear.ai earlier this week reported first-quarter revenue of $34.44 million and a loss of 4 cents per share, topping expectations for $33.60 million in revenue and a loss of 8 cents per share. Management also affirmed full-year 2026 revenue guidance of $135 million to $165 million, while noting revenue was down 1% year-over-year due to lower volume on Army programs.

The company said backlog rose 14% quarter-over-quarter, driven mainly by a sole-source prime classified award, and gross margin improved to 34% from 21.3% a year earlier. BigBear.ai ended the quarter with about $100.70 million in cash and cash equivalents.

BigBear.ai also pointed to "close to $75 million" of significant wins in the first-quarter, reinforcing management's focus on national security and trade-and-travel end markets as it tries to offset choppier defense program volume. That mix helps explain why the stock can trade heavy even on an EPS/revenue beat when investors want cleaner visibility into quarterly revenue cadence.

BBAI Stock: Key Levels To WatchFrom a trend perspective, BBAI is trying to stabilize: it's trading 6.8% above its 20-day SMA ($3.86) and 8.9% above its 50-day SMA ($3.79), which supports the idea of a short-term base forming. The bigger hurdle is overhead supply, with shares still trading 9.9% below the 100-day SMA ($4.58) and 24.9% below the 200-day SMA ($5.49), keeping the longer-term trend pressured.

Momentum is improving on the MACD: it's above its signal line and the histogram is positive, which typically means downside pressure is easing versus the prior downswing. In plain English, MACD compares two moving averages, and being above the signal line suggests buyers are gaining traction even if the longer-term trend hasn't fully flipped.

The moving-average structure is mixed, which is why rallies may still be choppy: the 20-day SMA is above the 50-day SMA (bullish near-term), but the 50-day SMA remains below the 200-day SMA after the death cross in February. Key turning points to keep in mind are the swing low in March and the swing high in May, which frame the current range traders are working.

Key Resistance: $4.50 — a nearby round-number area that can act as a pivot where rebounds stall Key Support: $3.50 — a nearby round-number level that can attract dip-buyers if the pullback deepens BBAI Stock Trades Flat Friday AfternoonBBAI Stock Price Activity: BigBear.ai Holdings shares were down 1.44% at $4.10 at the time of publication on Friday, according to Benzinga Pro data.

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BBAI stock jumps 24.7% in a month, considering backlog growth and Ask Sage gains, but losses, valuation and federal reliance keep risks high.

Kevin Warsh has put a fresh frame on the inflation debate, arguing that AI-driven productivity gains could allow the economy to grow faster without triggering inflation. If that supply-side view gains traction at the Fed, patience on rates becomes the base case, and the small-cap AI names that have been left for dead suddenly look like coiled springs. Nowhere is that asymmetry sharper than in the cohort still trading under $10.

With Warsh’s productivity thesis as the backdrop, here are four AI stocks under $10 that stand to benefit if the central bank shows patience with inflation in deference to AI-driven output gains.

C3.ai (NYSE: AI) C3.ai (NYSE:AI | AI Price Prediction) sells enterprise AI applications to commercial and federal customers. Shares closed at $9.03 on May 14, still down 33.01% year to date, which gives retail investors a damaged but cheap entry.

Q3 FY26 was ugly: revenue of $53.26 million fell 46.08% year over year and missed consensus by 29.59%. The bull case rests on the rebuild. Federal, defense, and aerospace bookings jumped 134% YoY, and the restructuring targets ~$135 million in annual operating expense savings. CEO Stephen Ehikian says “C3 AI is now a more agile, more disciplined, and more accountable organization.” The risk is accelerating cash burn, with free cash flow at negative $56.2 million. A patient Fed buys this turnaround time.

BigBear.ai (NYSE: BBAI) BigBear.ai (NYSE:BBAI) provides AI decision intelligence to defense and national security customers. The stock sits at $4.38, up 24.43% over the past month as government AI spending headlines have returned.

FY26 revenue guidance of $135 million to $165 million implies roughly 17% growth at the midpoint, and the backlog now exceeds $400 million. CEO Kevin McAleenan said the company “reduced our debt by more than 90%” after raising $693 million in 2025. The Ask Sage acquisition adds roughly $25 million in ARR tied to generative AI for defense. The risk: material weakness in internal controls and DOGE-driven contract delays. A dovish Fed eases the duration discount on this story.

SoundHound AI (NASDAQ: SOUN) SoundHound AI (NASDAQ:SOUN) builds a voice and conversational AI platform for automotive, restaurants, and enterprise. Shares trade at $8.52, with an analyst target of $14.25 implying meaningful upside, supported by six Buy ratings.

Q1 26 revenue rose 52% to $44.20 million, the sixth consecutive EPS beat. Organic auto and IoT revenue grew 88%. The pending LivePerson deal targets a $500 million combined revenue opportunity and access to 25 of the Fortune 100, with 2027 revenue projected at at least $350 million to $400 million. CEO Keyvan Mohajer framed Q1 with “SoundHound started the year strong with our top line growing 52%.” The risk is operating cash burn of $26.3 million and LivePerson integration execution. Productivity-friendly policy keeps high-growth multiples intact.

Agora (NASDAQ: API) Agora (NASDAQ:API) provides real-time engagement APIs for voice, video, and live shopping, and is increasingly leaning into conversational AI. Shares closed at $3.85, the cheapest name in the group.

Agora is the only profitable AI stock here. Q4 25 revenue grew 10.7% to $38.16 million, the fifth consecutive quarter of GAAP profitability, with net income of $4.92 million. FY25 marked the first full year of profitability since 2018. CEO Tony Zhao noted, “We are pleased to report our fifth consecutive quarter of GAAP profitability.” A $200 million share repurchase program runs through Feb 2027. The risk is China exposure and Shengwang active customers down 5.2% YoY. If Warsh’s view holds, profitable AI infrastructure at a sub-$300 million market cap is a screen-stopper.

Warsh’s supply-side framing is one input among many that could shape the path of rates. Do your own work on guidance, cash burn, and customer concentration before treating any of them as more than a watchlist candidate.

Key Takeaways SoundHound posted Q1 2026 revenue up 52% to $44.2M and launched its OASYS agentic AI platform.SoundHound's planned LivePerson buy aims to expand omnichannel reach and target a $500M revenue opportunity.BigBear.ai landed a classified $53M ceiling contract, but Q1 revenue fell 1%, and net loss hit $56.8M. Artificial intelligence stocks remain among the market’s most volatile yet closely watched investment themes in 2026. Investors continue searching for smaller AI companies that could emerge as long-term winners as enterprise AI adoption accelerates across industries. Two names drawing increasing attention are SoundHound AI (SOUN - Free Report) and BigBear.ai Holdings, Inc. (BBAI - Free Report)

Both companies operate in specialized AI markets and are positioning themselves around mission-critical enterprise applications rather than general-purpose consumer AI. SoundHound focuses on conversational and agentic AI across automotive, restaurants, retail and customer service, while BigBear.ai concentrates on defense, homeland security, logistics and travel-related AI solutions. Both companies are also pursuing growth through acquisitions, platform expansion and deeper enterprise relationships.

However, the stocks have struggled this year amid broader volatility in speculative AI names. Investors are now evaluating which company has the stronger long-term opportunity, better execution profile and more attractive risk-reward setup.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for SoundHound StockSoundHound remains one of the more ambitious pure-play conversational AI companies in the market. The company is aggressively building a broad agentic AI ecosystem spanning voice, text, commerce and customer service automation.

The company’s first-quarter 2026 results highlighted strong momentum. Revenue increased 52% year over year to $44.2 million, while its core automotive and IoT AI business grew 88% excluding acquisitions. Management said demand remained strong across restaurants, automotive, retail, banking and enterprise customer service. The company also launched OASYS, its self-learning orchestrated agentic AI platform designed to automate the entire lifecycle of AI agents.

A major growth catalyst is the planned acquisition of LivePerson. The transaction significantly expands SoundHound’s enterprise reach across digital messaging and omnichannel customer engagement. The combined platform is expected to create a broader conversational AI ecosystem spanning voice, chat, mobile and digital workflows. Management believes the combination creates a potential $500 million revenue opportunity while also accelerating the path toward profitability.

Importantly, the acquisition gives SoundHound exposure to a massive enterprise footprint, including 25 Fortune 100 customers, large global banks, airlines and telecommunications companies. The company is also benefiting from strong cross-selling opportunities as LivePerson customers increasingly seek voice AI capabilities.

Another positive is SoundHound’s growing diversification. The company is no longer dependent only on automotive voice assistants. It is rapidly expanding across restaurant automation, drive-thru AI, customer support automation and enterprise AI orchestration. Management highlighted strong adoption across retail chains, fitness brands and financial institutions.

The company is also investing heavily in proprietary AI infrastructure. Management stated that OASYS increasingly relies on SoundHound’s own speech foundation models rather than expensive third-party frontier models. This could eventually improve margins and strengthen competitive positioning.

Still, risks remain significant. SoundHound continues to generate sizable losses. First-quarter adjusted EBITDA loss was $26.7 million, while GAAP gross margin was only 31.1%. Operating expenses also remain elevated as the company invests aggressively in R&D, sales expansion and acquisitions.

Execution risk surrounding acquisitions also cannot be ignored. SoundHound has completed multiple acquisitions in a short period, and integrating LivePerson could prove complex. Investors are effectively betting that management can successfully combine different platforms while simultaneously scaling growth and improving profitability.

Valuation is another concern. SoundHound trades at a premium forward sales multiple despite ongoing losses and uncertain long-term profitability. That leaves little room for operational missteps.

The Case for BigBear.ai StockBigBear.ai offers a very different AI investment story centered around defense, national security and mission-critical government AI systems. Unlike many consumer-focused AI companies, BigBear.ai’s business is closely tied to government modernization, border security, logistics optimization and military AI applications. The company’s positioning could benefit from rising geopolitical tensions and increasing AI adoption within defense agencies. Management continues to emphasize strong demand across national security and trade and travel markets.

BigBear.ai reported several notable contract wins during the first quarter, including a classified sole-source intelligence contract with an approximate ceiling value of $53 million. The company also secured airport security contracts at Chicago O’Hare and Dallas-Fort Worth and expanded its Shipyard AI and Ask Sage platforms into defense and naval applications.

One encouraging trend is the improving revenue mix. BigBear.ai is increasingly shifting from lower-margin services to higher-margin AI platforms and generative AI software offerings. Management specifically noted that Ask Sage is contributing to stronger margins and more technology-oriented revenue streams.

The balance sheet has also improved materially. BigBear.ai ended the first quarter with $431.5 million in cash and investments after settling most of its convertible debt obligations. This provides the company with significantly more financial flexibility than it had in prior years.

Backlog growth was another positive. Backlog increased 14% sequentially to $281.9 million, supported by large defense-related contract wins. Gross margin also expanded sharply from 21.3% to 34% year over year.

However, BigBear.ai still faces major challenges. Revenue growth remains inconsistent. First-quarter revenue actually declined 1% year over year to $34.4 million. The company remains highly dependent on government contracts, procurement cycles and budget timing, which can create unpredictable revenue patterns.

Profitability also remains weak. The company reported a first-quarter net loss of $56.8 million. While much of this included non-cash charges tied to debt extinguishment and derivatives, BigBear.ai still has meaningful execution risk as it transitions toward a higher-margin AI software model.

Another challenge is competitive intensity. Large defense contractors and major cloud vendors are increasingly targeting government AI opportunities. BigBear.ai must continue proving that its specialized mission expertise and agility can offset its much smaller scale.

Market Momentum Paints a Mixed PictureBoth stocks have struggled in 2026 despite ongoing enthusiasm around AI spending trends. SoundHound stock is down 16.2% year to date, while BigBear.ai has plunged 27.4%. Both have underperformed the broader Zacks Computer and Technology sector, which has gained 16.8%, and the S&P 500, which is up 9.1%. SOUN has fared better than the Zacks Computers - IT Services industry, which has fallen 21%, while BBAI has underperformed the industry.

The relative weakness reflects investor caution toward speculative AI stocks that remain unprofitable and highly execution dependent.

SOUN vs BBAI Price Performance (YTD)

Image Source: Zacks Investment Research

Valuation Gap Reflects Different Risk ProfilesValuation remains demanding for both companies despite recent stock pullbacks. SoundHound currently trades at 14.2X forward 12-month sales, while BigBear.ai trades at 12.37X. Both remain above the Zacks Computers - IT Services industry average of 11.72X.

SoundHound commands the higher multiple largely because of its faster revenue growth profile, broader enterprise AI exposure and perceived long-term platform opportunity. BigBear.ai’s somewhat lower valuation reflects slower growth and greater dependence on government contracts.

SOUN vs BBAI Valuation (P/E F12M)

Image Source: Zacks Investment Research

Estimate Revisions Highlight Diverging SentimentAnalysts estimate trends currently favor BigBear.ai modestly. Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss widened to 11 cents from 9 cents. However, analysts still expect revenue growth of 38% for 2026 and narrower losses versus last year’s reported loss of 13 cents per share.

SOUN EPS Estimate

Image Source: Zacks Investment Research

For BigBear.ai, the 2026 loss estimate narrowed meaningfully to 25 cents from 35 cents over the past month. Analysts also expect losses to improve sharply from the prior year’s reported loss of 82 cents per share. Revenue is projected to grow 13% in 2026.

The estimate revisions suggest improving confidence in BigBear.ai’s cost structure and balance-sheet stabilization. Still, SoundHound continues to command stronger top-line growth expectations.

BBAI EPS Estimate

Image Source: Zacks Investment Research

Which AI Stock Has More Upside?Both companies operate in attractive AI markets and possess differentiated technology positioning. However, SoundHound currently appears to offer the stronger long-term upside profile.

SoundHound benefits from significantly faster expected revenue growth, broader enterprise diversification, stronger commercial AI adoption trends and a potentially transformative conversational AI platform opportunity. Its OASYS launch and planned LivePerson acquisition could substantially expand its enterprise footprint and long-term monetization opportunities.

BigBear.ai’s defense and homeland security exposure remains compelling, especially amid rising geopolitical tensions and increasing government AI spending. The company’s improving balance sheet, stronger backlog and expanding generative AI platform business are encouraging. However, slower revenue growth, higher government dependency and execution risks remain concerns.

SoundHound currently carries a Zacks Rank #3 (Hold), while BigBear.ai carries a Zacks Rank #4 (Sell). Given the stronger growth outlook, broader AI opportunity and more favorable earnings profile, SoundHound appears better positioned for investors seeking higher long-term upside potential despite its elevated risk profile.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BigBear.ai and International Shipping Compliance (ISC) Announce First Deployment of AI-Powered Supply Chain Security Platform in Panama's Dry Canal BigBear.ai (NYSE: BBAI), a specialized defense technology company providing mission-ready AI for national security and trade & travel customers, announced that PTG (Panama Transshipment Group), the country’s largest logistics operator, has signed a commercial agreement to be the first to deploy a new AI-powered cargo security management solution – the International Shipping Compliance application – developed by BigBear.ai and Narval. PTG is already using the technology to increase supply chain transparency.

Narval Holding Corp. and its subsidiary, International Shipping Compliance S.A. (ISC), launched the International Shipping Compliance application with BigBear.ai in August 2025.

Modern trade moves at extraordinary speed and volume. This new cargo security management solution provided by ISC and powered by BigBear.ai technology features layered intelligence using biometrics and advanced analytics to give operators a clearer view of where cargo is, who is handling it, and whether the profile of the cargo has changed during its journey. It increases visibility for customs and border security professionals, which reduces the likelihood that contraband enters the supply chain and increases the chances of identifying the risk early enough to react.

Troy Miller, former acting U.S. Customs and Border Protection commissioner, joined BigBear.ai in March 2026 as Senior Vice President of Department of Homeland Security Solutions. Miller said:

“Even the best customs and law enforcement agencies around the world can only physically inspect a fraction of global cargo. The answer is not slowing commerce. It is making supply chains smarter, more transparent, and more secure. Criminal organizations no longer rely solely on covert routes or hidden smuggling corridors. Today, they exploit the very arteries of legitimate global commerce—ports, free trade zones, trucking routes, and containerized cargo systems that power the world economy. That is what makes this new commercial deployment in Panama so significant, and why others can learn from the rapid implementation.”

The cargo chain-of-custody application co-developed between BigBear.ai and International Shipping Compliance S.A. (ISC), uses biometric verification to link drivers and transport vehicles directly to containers and security seals, establishing an auditable record of accountability from origin to destination. A centralized operations platform aggregates real-time fleet and driver data, enabling logistics operators to detect anomalies, monitor cargo flows, and generate actionable intelligence to disrupt smuggling and mitigate terrorism-related risks. By delivering verified, real-time chain-of-custody data directly to customs agencies, the platform can help reduce the manual burden of cargo inspection and risk assessment, giving authorities the intelligence needed to act quickly. The solution complies with BASC and C-TPAT international security standards.

“Securing the global supply chain requires innovation, trust, and the ability to verify each handoff along the way,” said Kevin McAleenan, CEO, BigBear.ai. “By launching in Panama, a critical gateway for global trade, we are laying the foundation for broader regional adoption and collaboration with international shipping lines.”

“The future of global trade depends on secure, trusted, and transparent logistics networks,” said Mario Pérez Balladares, Chairman of Narval. “Panama stands at the center of international commerce, and this collaboration with BigBear.ai represents an important step toward strengthening supply chain integrity across the region and beyond.”

The Panama Canal is one of the world's most critical arteries of global commerce — connecting trade flows between Asia, the United States, Europe, and South America, and facilitating approximately 5–6% of global maritime trade. Panama’s port system serves as one of the leading transshipment hubs in the Americas, handling approximately 10 million TEUs (twenty-foot equivalent unit) annually, with nearly 90% tied to transshipment activity across its Atlantic and Pacific container terminals. It is a prime target for transnational criminal organizations seeking to move narcotics, contraband, and counterfeit goods through otherwise lawful trade flows. For example, in 2023, according to The Panama Canal Authority, Panamanian authorities seized more than 120 metric tons of cocaine tied to containerized cargo moving through canal-adjacent facilities.

To learn more about the cargo security management solution, visit: www.iscapp.com.

About BigBear.ai

BigBear.ai is a specialized defense technology company, developing and deploying mission-ready AI solutions and services. Customers and partners rely on BigBear.ai’s artificial intelligence and predictive analytics capabilities in highly complex, distributed, mission-based operating environments. Headquartered in McLean, Virginia, BigBear.ai is a public company traded on the NYSE under the symbol BBAI. For more information, visit https://bigbear.ai and follow BigBear.ai on LinkedIn: @BigBear.ai and X: @BigBearai. To receive email communications from BigBear.ai, register here.

About International Shipping Compliance

International Shipping Compliance, S.A. (ISC) is a supply chain security company focused on enhancing cargo visibility, accountability, and compliance across global logistics networks. Through its AI-powered cargo security platform, ISC enables secure shipment tracking, chain-of-custody verification, and real-time monitoring designed to help governments, ports, logistics operators, and commercial partners strengthen supply chain integrity and reduce illicit trade risks. For more information, visit https://www.iscapp.com/

About The Narval Group

The Narval Group is a diversified investment and logistics holding company focused on advancing secure, sustainable, and technology-driven supply chain operations. Through its portfolio of companies, Narval delivers integrated logistics, transshipment, and temperature-controlled shipping solutions designed to enhance efficiency, compliance, and resilience across global trade networks.

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements include, but are not limited to, statements regarding the intended use of proceeds from the private placement and may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; risks related to the uncertainty of the projected financial information (including on a segment reporting basis); risks related to delays caused by factors outside of our control, including changes in fiscal or contracting policies or decreases in available government funding; changes in government programs or applicable requirements; budgetary constraints, including automatic reductions as a result of “sequestration” or similar measures and constraints imposed by any lapses in appropriations for the federal government or certain of its departments and agencies; influence by, or competition from, third parties with respect to pending, new, or existing contracts with government customers; our ability to successfully compete for and receive task orders and generate revenue under Indefinite Delivery/Indefinite Quantity contracts; potential delays or changes in the government appropriations or procurement processes, including as a result of events such as war, incidents of terrorism, natural disasters, and public health concerns or epidemics; and increased or unexpected costs or unanticipated delays caused by other factors outside of our control, such as performance failures of our subcontractors; risks related to the rollout of the business and the timing of expected business milestones; the effects of competition on our future business; our ability to issue equity or equity-linked securities in the future, and those factors discussed in the Company’s reports and other documents filed with the SEC, including under the heading “Risk Factors.” More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the SEC, including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260520788029/en/

Key Takeaways BBAI signed a commercial deal with PTG to deploy its ISC cargo-security app in Panama.ISC uses biometrics, analytics and real-time monitoring to strengthen chain-of-custody checks.BigBear.ai says Panama's trade-gateway role could help drive broader regional adoption. BigBear.ai Holdings, Inc. (BBAI - Free Report) is expanding its footprint in the trade and travel security market with the first deployment of its AI-powered cargo security platform in Panama, a key global shipping hub. The company announced that Panama Transshipment Group (PTG), the country’s largest logistics operator, signed a commercial agreement to deploy the International Shipping Compliance (ISC) application developed jointly by BigBear.ai and Narval Holding Corp. (parent company of ISC). Following the news, shares of BBAI gained 6.3% during trading hours yesterday.

The platform uses biometrics, advanced analytics and real-time monitoring tools to improve cargo visibility and strengthen chain-of-custody verification across supply chains. By linking drivers, transport vehicles and containers through biometric verification, the system aims to help customs and logistics operators detect anomalies, reduce smuggling risks and improve supply chain transparency. Management views the Panama rollout as a strategic milestone, noting that Panama’s role as a critical global trade gateway handling nearly 5-6% of global maritime trade could support broader regional adoption of BBAI’s cargo-security solutions.

The announcement also aligns with BigBear.ai’s broader growth strategy outlined during its first-quarter 2026 earnings call. The company has been prioritizing expansion in national security and trade-and-travel markets while increasing focus on AI-driven logistics and cargo monitoring solutions. BigBear.ai also highlighted growing demand for CargoSeer and related supply-chain analytics offerings as global trade disruptions and security concerns continue to rise.

The Panama deployment could strengthen BigBear.ai’s commercial AI presence beyond its traditional defense business. Investors may now watch whether the ISC platform gains traction with additional ports, customs agencies and logistics operators globally, potentially creating a larger recurring revenue opportunity in trade security.

BigBear.ai Faces Stiff Competition From Palantir & C3.aiBigBear.ai is betting on AI-powered trade security, border intelligence and mission-ready decision platforms, alongside market competitors like Palantir Technologies Inc. (PLTR - Free Report) and C3.ai, Inc. (AI - Free Report) . However, each company is pursuing a distinct strategy within the rapidly expanding AI and national security market.

Palantir continues to operate at a much larger scale with deeply integrated AI and data platforms like Gotham, Foundry and AIP, and enterprises unify complex datasets, automate workflows and deploy AI securely across mission-critical operations. Palantir also relies on its core platform architecture, specifically its central "Ontology," which functions as a "no slop zone" to coordinate purpose-built AI agents with exact precision and governance.

C3.ai, on the other hand, is emphasizing enterprise AI transformation across industries such as manufacturing, energy, healthcare and defense. C3.ai has also been expanding its federal and defense presence, with growing bookings from government, aerospace and intelligence customers, alongside AI projects for organizations such as the U.S. Department of Agriculture, Department of Energy and NATO.

BBAI Stock’s Price Performance & Valuation TrendShares of this Virginia-based AI-powered decision intelligence solutions provider have inched up 9.9% in the past three months, outperforming the Zacks Computers - IT Services industry and the S&P 500 index, but underperforming the Zacks Computer and Technology sector.

Image Source: Zacks Investment Research

BBAI stock is currently trading at a premium compared with the industry, with a forward 12-month price-to-sales (P/S) ratio of 12.86, as evidenced by the chart below.

Image Source: Zacks Investment Research

EPS Trend of BBAIBBAI’s bottom-line estimates for 2026 and 2027 reflect losses per share of 25 cents and 19 cents, respectively. The 2026 estimate has narrowed over the past 30 days, while the 2027 estimate has remained stable during the same period. However, the revised estimates for 2026 and 2027 indicate year-over-year growth of 69.5% and 24%, respectively.

Image Source: Zacks Investment Research

BigBear.ai stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Palantir Technologies (PLTR 0.43%) and BigBear.ai (BBAI +1.00%) represent two distinct paths within the expanding artificial intelligence (AI) market. Choosing between them requires weighing the established scale of a software giant against the prospect of a smaller company’s ability to grow and deliver more asymmetric upside for investors.

Palantir is offering AI-powered operating systems for modern enterprise data, while BigBear.ai targets specialized technology solutions for national security and enterprise customers. They are frequently compared because both generate a substantial portion of revenue from government contracts.

The case for Palantir TechnologiesPalantir sells a suite of platforms, including Artificial Intelligence Platform (AIP), Foundry, Gotham, and Apollo, to both commercial and government clients. The company has seen significant growth in the commercial sector as businesses integrate its tools to manage complex data operations. Its top three customers accounted for roughly 16% of total revenue in 2025. Customer concentration like this adds a layer of risk to the business.

In 2025, revenue reached nearly $4.5 billion, representing an impressive 56.2% year-over-year growth rate. This expansion helped the company achieve a net income of approximately $1.6 billion. This performance highlights the company's ability to scale its software products across more than 50 different vertical markets in the tech stocks sector.

Palantir has no debt. Its current ratio, which measures the ability to cover short-term bills, stands at a robust 7.1x. Profitability is elite, as the company reported a 54% profit margin last quarter.

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The case for BigBear.aiBigBear.ai provides AI-powered intelligence solutions specifically designed for national security, supply chains, and autonomous systems. Its primary focus is on providing actionable insights for complex environments like border security and manufacturing.

For 2025, the company reported revenue of nearly $127.7 million, which was a decrease of approximately 19.3% from the prior year. This decline contributed to a net loss of approximately $293.9 million for the period. While the company maintains a solid backlog of orders, its path to profitability remains a central focus for investors monitoring its specialized niche.

On its December 2025 balance sheet, BigBear.ai showed a debt-to-equity ratio of 0, indicating a fairly healthy financial position. The current ratio is approximately 1.8x, indicating it has sufficient assets to cover its short-term liabilities.

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Risk profile comparisonPalantir faces competition in the enterprise software market. Many of its largest government contracts permit termination for convenience, which could impact future revenue if renewals do not occur. Additionally, the company is subject to the evolving EU AI Act and other global data regulations. Fines for non-compliance with these laws can reach up to 7% of total revenue.

BigBear.ai has customer concentration risks, as the majority of its revenue comes from a small group of government-linked clients. This makes the company vulnerable to shifts in federal budgets or contract cancellations. It also competes against massive system integrators and established contractors. The company also faces risks related to the commercial adoption of its biometric technology, which is still in an early stage of market demand.

Valuation comparisonPalantir trades at a significantly higher valuation than BigBear.ai, as reflected in its P/S ratio, reflecting the market's higher growth expectations for the larger firm.

MetricPalantir TechnologiesBigBear.aiSector BenchmarkForward P/E104xn/a38.2xP/S ratio67x13.5xSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

BigBear.ai is benefiting from a tailwind as the U.S. government ramps up investment in AI solutions for national security programs. But BigBear.ai has a lot more to prove than Palantir, which is showing the potential to expand well beyond reliance on government contracts.

While BigBear.ai has seen inconsistent revenue growth quarter to quarter, Palantir has steadily reported higher growth rates over the past two years. This has been driven by accelerating adoption in the private sector, with its U.S. commercial revenue up 133% year over year in Q1.

I believe Palantir is the safer long-term bet than BigBear.ai. Palantir has demonstrated a competitive advantage through high margins, signaling significant pricing power for its software platforms. The stock is expensive, but it’s also a unique company generating incredibly high margins on accelerating revenue growth.

BigBear.ai Holdings, Inc. (NYSE:BBAI) shares are moving higher on Friday. But the move may be over. The shares are overbought and at resistance.

These can be bearish dynamics that set the stage for a move higher. This is why BigBear is the Stock of the Day.

• What’s going on with BBAI shares?

As you can see on the chart, the $5.40 level was support for BigBear in October 2025 and November 2025.

People were happy they bought shares at this price when they rallied after. But when the support broke and the price dropped below it in January 2026, a number of these investors came to think their decision to buy was a mistake.

They decided to hold onto their losing positions. But they also decided that if they eventually had the opportunity, they would exit their positions at breakeven.

So now that BigBear has returned to this level, these remorseful buyers are placing sell orders. These orders have created resistance around $5.40.

Stocks have a tendency to reverse and head lower after reaching resistance.

This happens when some of the traders and investors who created the resistance become anxious and impatient. They are worried that other sellers will undercut them.

They know the buyers will go to whoever is willing to sell their shares at the lowest price. As a result of this, these anxious and impatient sellers reduce their offer prices.

Other anxious and impatient sellers see this, and they do the same thing. This can result in a snowball effect that forces the price lower.

BigBear is also overbought. It is trading above its typical or usual trading range.

Many trading strategies are based on the concept of reversion to the mean. When a stock is overbought, it will draw sellers into the market. They will be anticipating a reversion or move lower, and selling could put pressure on the shares.

The combination of being overbought while at resistance could be a bearish dynamic. The BigBear rally may be over.

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While the company reported decent revenues, its earnings "were not there," Cramer further stated.

Regarding Ellington Financial Inc (NYSE:EFC), Cramer said that he felt apprehensive recommending stocks of mortgage financing companies. "When I see these mortgage finance companies, I never know what they really own, so I never feel like I can give any good guidance," he explained.

He added that he typically does not recommend these stocks, although they have "very big yields."

Cramer said that BigBear.ai Holdings Inc (NYSE:BBAI) loses money "hand over fist," which is why he does not recommend it.

Price Action:

Clover Health Investments shares were down 4.78% to close at $3.98 on Friday. Shares of Amkor Technology declined by 1.45% to settle at $69.56 on Friday. Ellington Financial shares were up 0.82% at $13.57. BigBear.ai Holdings shares rose by 2.02% to close at $5.04 on Friday. Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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BigBear AI’s NYSE: BBAI price action says the bear market is not only over, but that a complete reversal is at hand. The market hit a bottom earlier this year and completed a Head & Shoulders Reversal pattern.

The company turnaround has it on track to grow and achieve profitability within the foreseeable future. As it stands, the pattern suggests this market movement is, at worst, half over, and a move to $6 is forthcoming.

Get BigBear.ai alerts:

Dilution is the biggest risk, but it isn’t an immediate threat, and there are some catalysts in play. Last year’s activities increased the share count by nearly 90%, leading to a massive share price decline, but also to zero debt, improved capitalization, restructuring, and acquisitions to better position the company. As of mid-2026, the business is gaining traction in key markets, is on track to accelerate growth in subsequent quarters, and has a modest capital runway. The question is whether it can ramp revenue and improve margins to sustain sufficient capitalization to cross the finish line to true profitability without another capital injection.

Big Catalyst for BigBearUpcoming catalysts include monetizing Ask Sage, converting its backlog to revenue, receiving a major technology affirmation, and achieving full-year guidance. Ask Sage is central to the outlook, underpinning not only the revenue forecast but the margin. The acquisition is already driving better margins; the opportunity now is to sustain the improvement and drive additional growth through new clients, penetration, and cross-selling.

BigBear.ai Today

$4.08 +0.06 (+1.37%)

As of 11:25 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$3.01▼

$9.39Price Target$5.50

The potential is robust, as Ask Sage provides secure access to over 150 AI models, including major models like ChatGPT, and has high-level government clearances. FedRAMP High and Department of Defense Impact Level 5/6 classification enable the handling of classified and sensitive material, in demand. The company already supports more than 16,000 users across thousands of government and enterprise teams.

Backlog provides some visibility for investors. The Q1 2026 earnings release reported a 14% increase in backlog, bringing it to a record level. At approximately $290 million, it is nearly double the annual revenue forecast and is expected to continue growing. Not only are new contracts likely, but existing contracts, such as with the Air Force, also include potential for follow-on business.

BigBear’s transition from a government pure-play to a diversified business is another theme central to the stock price outlook. The company wants to expand its client base to include private enterprises to invigorate growth and reduce revenue lumps from government contracts. The move into Panama, in partnership with Panama Transshipment Group, puts it squarely in the sights of global operators. The opportunity here is for BigBear to expand to other operators, entrenching itself in the fabric of global logistics and security.

Achieving its guidance would mark an inflection point for the company. Big Bear's target range has a midpoint of $150 million, representing a double-digit year-over-year increase and more than 10% above the consensus analyst forecast. The risk is that revenue growth will be slower than expected, leaving the market vulnerable to short selling and other bearish forces.

Market in Wait-and-See Mode—Big Gains or Big Drops Are ComingThe sell-side data, including short interest, institutional activity, and analyst coverage, says this market isn’t out of the woods, not by a long shot. While short interest remains high, above 25%, institutional holdings are still low, near 7.5%, and analyst coverage is cool, at best. The opportunity here is that upcoming releases trigger short-covering and accumulation, but there isn’t much sign of that yet.

Overall MarketRank™45th Percentile

Analyst RatingHold

Upside/Downside37.9% Upside

Short Interest LevelBearish

Dividend StrengthN/A

News Sentiment0.83 Insider TradingSelling Shares

Proj. Earnings GrowthGrowing

See Full Analysis

Analysts' coverage is mixed: the stock is rated Hold, but only three analysts cover it, leaving little data to go on. The best that can be said of this and other sell-side activity is that the market is waiting to see what happens, with higher stock prices possible but still highly questionable. In this scenario, the market may remain range-bound near current levels until additional catalysts emerge, which may not materialize until later in the summer with the Q2 earnings release. Signs of strength will be reflected in the stock price and may even trigger increased coverage.

What the market gets wrong about BigBear AI is that it is not a pure-play SaaS company, but rather a defense contractor amid a significant shift. While revenue growth has been tepid, the company has been replacing lower-quality revenue streams with higher-quality opportunities while also expanding into heavily regulated commercial markets. Comparisons to Palantir NASDAQ: PLTR are misleading, as it provides critical infrastructure to the logistics and border-control markets and won’t see the same upfront growth explosion. Contracts of this nature take time. Additionally, most of the company’s losses are on non-cash adjustments; profitability is closer than it appears.

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