BRENTWOOD, Tenn.--(BUSINESS WIRE)--Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the “Company”), today announced that its Board of Directors declared a quarterly cash dividend of $0.24 per share of the Company’s common stock.
The dividend will be paid on June 9, 2026, to stockholders of record of the Company’s common stock as of the close of business on May 27, 2026.
About Tractor Supply Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 296 on the Fortune 500. The Company’s more than 52,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.
As part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, and Allivet, a leading online pet and animal pharmacy, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.
As of March 28, 2026, the Company operated 2,435 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.
On May 18, 2026, Tractor Supply Co TSCO shares rose 3.8% to a current price of $31.72. Despite this uptick, TSCO has experienced significant volatility over the past year, with a 52-week range spanning from a low of $29.42 to a high of $63.99.
GF Value™ verdict: The current price is $31.72, compared to a GF Value™ of $56.28, indicating the stock is 43.6% undervalued.GF Score™: TSCO has a GF Score™ of 83/100, categorizing it as a strong investment opportunity.Most notable signal: There have been no insider transactions in the last 3 months, which may suggest a lack of confidence from insiders in the current valuation. Is TSCO Overvalued or Undervalued? Tractor Supply Co TSCO appears to be significantly undervalued according to the GF Value™ model, which estimates the intrinsic value of the stock at $56.28. This valuation suggests a substantial margin of safety of 43.6% compared to the current trading price of $31.72. The GF Valuation label indicates that TSCO is undervalued, presenting a potential investment opportunity for those looking for solid companies with favorable long-term prospects.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Despite the current undervaluation, it is essential to consider market conditions and the company's performance metrics, as fluctuations in the stock price can occur due to broader economic factors.
How Does TSCO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.6x 24.9x Forward P/E 14.9x - Currently, TSCO's P/E ratio of 15.6x is significantly below its 5-year median P/E of 24.9x, reflecting a discount of 38%. This analysis aligns with the GF Value™ verdict, indicating that the stock is undervalued relative to its historical valuation metrics.
What Does TSCO's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 2/10 The GF Score™ of 83/100 reflects a strong overall financial position for TSCO, particularly in profitability and growth, where it scored 9/10 and 10/10, respectively. However, the valuation score of 4/10 indicates that the stock may not be priced in line with its fundamental strengths. Additionally, the momentum rank of 2/10 suggests that TSCO has faced challenges in recent market performance, which may be a concern for short-term investors.
What Are Insiders Doing with TSCO Stock? In the last three months, there have been no insider transactions reported for Tractor Supply Co TSCO . This lack of activity from insiders may suggest that they are not taking advantage of the current pricing, which could indicate either a wait-and-see approach or a belief that the stock's value will not increase in the short term.
What This Means for Investors Based on the GF Value™ assessment, Tractor Supply Co TSCO is currently undervalued at a price of $31.72 compared to a GF Value™ of $56.28. This suggests potential upside for investors, though it is crucial to consider market dynamics and company performance before making investment decisions.
For the complete analysis, visit the Tractor Supply Co TSCO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TSCO's GF Score™?
TSCO's GF Score™ is 83/100, indicating a strong position in terms of potential long-term returns based on key financial metrics.
Is TSCO overvalued or undervalued?
TSCO is currently undervalued, with a GF Value™ of $56.28 compared to its current price of $31.72, suggesting significant upside potential.
What is TSCO's P/E ratio?
TSCO's P/E (TTM) is 15.6x, which is 38% below its 5-year median P/E of 24.9x, further supporting the conclusion that the stock is undervalued.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Initial inventory of more than 1,000 units in stock, with orders scheduled for pickup, supporting Massimo's expected 2026 revenue growth strategy and continued national retail expansion
, /PRNewswire/ -- Massimo Group (NASDAQ: MAMO) ("Massimo" or the "Company"), a manufacturer and distributor of powersports vehicles, utility vehicles, and outdoor mobility products, today announced that it has commenced revenue-generating fulfillment activities for its newly authorized in-store SKU program with Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States.
Massimo Motor GKS200 Retail Program The milestone follows the Company's previously announced authorization for a significant national rollout of a core utility-focused product across Tractor Supply's retail network. With initial inventory of more than 1,000 units now in stock and orders scheduled for pickup, Massimo has advanced from retail authorization into active fulfillment and revenue execution.
Management believes the program has the potential to become an important revenue contributor through the remainder of 2026 as fulfillment volumes, retail sell-through activity, and potential replenishment orders scale. The Company believes this transition from authorization to fulfillment validates Massimo's national retail growth strategy and its ability to convert large-scale retail opportunities into commercial execution.
"This is more than a retail authorization milestone — this is the beginning of revenue execution," said Quenton Petersen, Chief Executive Officer of Massimo Group. "A few months ago, we announced a significant retail opportunity. Today, we have inventory in stock, orders scheduled for pickup, and products beginning to move into the retail channel. We believe this demonstrates to our shareholders that Massimo is not simply announcing growth initiatives — we are executing against them."
Petersen continued, "Tractor Supply is one of the most important retail platforms serving rural lifestyle customers in the United States. We believe our products align strongly with that customer base, and we are proud to support this program with inventory readiness, fulfillment capability, operational execution, and a continued focus on quality and value."
Massimo believes the commencement of fulfillment activities represents another step in its broader 2026 growth strategy, which includes expanding national retail distribution, strengthening inventory availability, supporting sell-through performance, and building opportunities for future replenishment orders, subject to retail performance and mutual agreement.
The Company remains focused on disciplined execution across its retail channel, including fulfillment reliability, product availability, customer support, and continued collaboration with leading national retail partners. Massimo believes this program provides a scalable foundation for meaningful revenue contribution and long-term shareholder value creation.
About Massimo Group
Massimo Group is a manufacturer and distributor of powersports products and outdoor utility vehicles. Headquartered in Texas, the Company offers a full lineup of UTVs, ATVs, mini bikes, outdoor recreational products, and utility-focused mobility platforms designed for work, recreation, and lifestyle applications. Massimo is focused on combining operational scale, retail distribution expansion, and product innovation to support long-term growth opportunities across its core markets.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to Massimo Group. All statements other than statements of historical facts contained in this press release, including statements regarding expected fulfillment activity, anticipated sell-through performance, potential replenishment orders, future revenue contribution, retail expansion, operational execution, inventory availability, and long-term shareholder value creation, are forward-looking statements.
In some cases, forward-looking statements can be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "seek," "will," "would," "could," "should," or similar expressions, and the negatives of those terms.
These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to, retail sell-through performance; customer demand; inventory availability; production, shipping or logistics delays; macroeconomic conditions; inflationary pressures; supply chain constraints; competitive pressures; regulatory developments; retail partner performance; and other risks and uncertainties described in filings made by Massimo Group with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and Current Reports on Form 8-K.
Forward-looking statements speak only as of the date they are made. No assurance can be given regarding forward-looking statements, and actual results may differ materially from those indicated. Massimo Group undertakes no obligation to update these statements except as required by law.
Investor Relations Contact
Massimo Group
Investor Relations
[email protected]
4928-2544-8877\2
It has been about a month since the last earnings report for Tractor Supply (TSCO - Free Report) . Shares have lost about 18.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Tractor Supply due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Tractor Supply's Q1 Earnings Miss, Higher Comparable Sales AidTractor Supply reported first-quarter 2026 results, wherein the bottom and top lines missed the Zacks Consensus Estimate. While net sales increased from the year-ago period, earnings declined. It posted earnings of 31 cents per share, which lagged the Zacks Consensus Estimate of 34 cents. The bottom line dipped 7.2% from the figure reported in the prior-year quarter.
Net sales grew 3.6% year over year to $3.59 billion but came below the Zacks Consensus Estimate of $3.64 billion. The rise in sales can be attributed to store openings and, to a lesser extent, higher comparable store sales (comps). Comps edged up 0.5% year over year compared with the 0.9% drop registered in the prior-year’s first quarter. The improvement reflects a 1.6% rise in comparable average ticket, partly offset by a 1% dip in the comparable average transaction count.
Four out of the five product categories posted positive comps in the reported quarter, complemented by strength in big-ticket items. Companion animal performance was below the company’s average, indicating weak demand trends, category shifts and an unfavorable product mix. The company reported solid double-digit growth in digital sales.
Tractor Supply’s Costs & MarginsGross profit rose 3.6% year over year to $1.30 billion. The gross margin remained flat year over year at 36.2%, as effective product cost management and solid execution of an everyday low-price strategy were mitigated by elevated tariffs and delivery-related transportation costs. Our model predicted gross profit to increase 8.5% and the gross margin to expand 70 basis points (bps) to 35.9%.
Selling, general and administrative (SG&A) expenses, including depreciation and amortization, rose 6.1% to $1.07 billion from $1.01 billion in the first quarter of 2025. As a percentage of net sales, SG&A increased 70 bps to 29.7% from 29% in the year-ago quarter. This increase was owing to deleveraged fixed costs based on comps performance and an accelerated new store opening cadence, somewhat offset by a focus on productivity and cost control. Our model predicted SG&A expenses to increase 7.4% and, as a percentage of sales, this metric was anticipated to expand 50 bps to 26.1%.
Operating income for the quarter fell 6.3% year over year to $233.4 million. Meanwhile, the operating margin contracted 70 bps to 6.5%. We estimated operating income to drop 6.1% and the operating margin to fall 40 bps 6.8%.
TSCO’s Financial PositionTractor Supply ended the quarter with cash and cash equivalents of $224.3 million, long-term debt of $2.13 billion and total stockholders’ equity of $2.51 billion. In first-quarter 2026, net cash provided by operating activities was $91.1 million. In the same period, the company incurred capital expenditures of $202.6 million.
During first-quarter 2026, Tractor Supply returned $244.4 million to shareholders. This included the repurchase of 2.3 million shares of its common stock for $118 million and the payment of $244.4 million in quarterly cash dividends.
In the reported quarter, the company continued to expand its footprint by opening 40 Tractor Supply outlets, while closing one Petsense by Tractor Supply store.
Sneak Peek Into TSCO’s OutlookManagement reiterated guidance for 2026. The company still expects net sales growth of 4-6% and comps growth of 1-3%.
For 2026, the operating margin rate is projected between 9.3% and 9.6%. Net income is expected to be between $1.11 billion and $1.17 billion, with earnings per share anticipated to be $2.13-$2.23.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresAt this time, Tractor Supply has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Tractor Supply has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Tractor Supply Company is rated a 'Buy' after a 36% YTD decline, with shares now trading 21% below intrinsic value. Pet segment weakness, driven by declining dog ownership and Tractor Supply product mix, is a headwind but not a long-term structural risk. TSCO's 75% non-pet sales, expanding store footprint, exclusive brands, and robust loyalty program underpin resilient growth and margin strength.
Rural lifestyle retailer commemorates Military Appreciation Month with special Neighbor’s Club rewards for Hometown Heroes in May and summer savings through Memorial Day
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, is honoring America’s heroes all month long with special offers for Neighbor’s Club Hometown Heroes members and savings through Memorial Day.
May is recognized as Military Appreciation Month, as it includes Military Spouse Appreciation Day and Victory in Europe (VE) Day on the 8th, Armed Forces Day on the 16th and Memorial Day on the 25th. Tractor Supply is commemorating the observance by offering $5 in rewards to any military servicemember, veteran or first responder who verifies their Hometown Hero status with ID.me in May until May 31.
Additional Military Appreciation Month offers include a $5 reward for Hometown Heroes who spend $75 or more during any Thursday in May, and $5 in rewards for Hometown Heroes who spend $50 or more on Dumor or Retriever products all month long.
“During Military Appreciation Month, we believe it is vital to pause and recognize the Hometown Heroes who live and work alongside us,” said Colin Yankee, Executive Vice President, Chief Supply Chain Officer at Tractor Supply and former U.S. Army Captain. “We created the Hometown Heroes initiative to support our ongoing commitment to give back to those who serve. We hope to welcome many more veterans and military servicemembers to the program this month so we can in turn express our gratitude during every store visit.”
Tractor Supply has long supported military servicemembers, veterans and first responders through charitable giving, semiannual discounts, designated parking spots at stores and through the Company’s support of Team Members who are veterans. The Company and its Foundation launched Hometown Heroes in 2024 to bring this longstanding support for the selfless men and women who serve America under one banner.
Since its inception, the Tractor Supply Foundation has consistently introduced meaningful ways to demonstrate appreciation for our Hometown Heroes, including hands-on volunteer events and contributing more than $3 million through the Hometown Heroes initiative to organizations including Folds of Honor, K9s For Warriors, Farmer Veteran Coalition and Operation Homefront, among others.
The Neighbor’s Club Hometown Heroes benefit is another way Tractor Supply honors its commitment to community values and gratitude for service. The program is free to join and offers benefits every day. These include:
Top Tier Loyalty Status with 2% back every day Quarterly 5% off coupon 10% off on select Honoring Heroes Days which include: July 3 & 4 First Responders Day (October 28) Tractor Supply’s National Hometown Heroes Day (November 7) Veterans Day (November 11) To learn more about Neighbor’s Club Hometown Hero benefits, visit tractorsupply.com/neighborsclub.
While Memorial Day serves as a time to remember those who gave their lives for our country, it is also recognized as a day for families, friends and loved ones to gather in celebration of our great nation. Tractor Supply’s Memorial Day sale provides savings on everything necessary for summer gatherings, including grills and griddles, patriotic décor, apparel, summer toys and games, UTVs, kayaks and more. Tractor Supply stores will be open on Memorial Day from 8 a.m.-6 p.m. Find the full list of Memorial Day deals here.
About Tractor Supply Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 296 on the Fortune 500. The Company’s more than 52,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.
As part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, and Allivet, a leading online pet and animal pharmacy, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.
As of March 28, 2026, the Company operated 2,435 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.
Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, is honoring America’s heroes all month long with special offers for Neighbor’s Club Hometown Heroes members and savings through Memorial Day.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260521191437/en/
Tractor Supply Honors America's Heroes All Month Long
May is recognized as Military Appreciation Month, as it includes Military Spouse Appreciation Day and Victory in Europe (VE) Day on the 8th, Armed Forces Day on the 16th and Memorial Day on the 25th. Tractor Supply is commemorating the observance by offering $5 in rewards to any military servicemember, veteran or first responder who verifies their Hometown Hero status with ID.me in May until May 31.
Additional Military Appreciation Month offers include a $5 reward for Hometown Heroes who spend $75 or more during any Thursday in May, and $5 in rewards for Hometown Heroes who spend $50 or more on Dumor or Retriever products all month long.
“During Military Appreciation Month, we believe it is vital to pause and recognize the Hometown Heroes who live and work alongside us,” said Colin Yankee, Executive Vice President, Chief Supply Chain Officer at Tractor Supply and former U.S. Army Captain. “We created the Hometown Heroes initiative to support our ongoing commitment to give back to those who serve. We hope to welcome many more veterans and military servicemembers to the program this month so we can in turn express our gratitude during every store visit.”
Tractor Supply has long supported military servicemembers, veterans and first responders through charitable giving, semiannual discounts, designated parking spots at stores and through the Company’s support of Team Members who are veterans. The Company and its Foundation launched Hometown Heroes in 2024 to bring this longstanding support for the selfless men and women who serve America under one banner.
Since its inception, the Tractor Supply Foundation has consistently introduced meaningful ways to demonstrate appreciation for our Hometown Heroes, including hands-on volunteer events and contributing more than $3 million through the Hometown Heroes initiative to organizations including Folds of Honor, K9s For Warriors, Farmer Veteran Coalition and Operation Homefront, among others.
The Neighbor’s Club Hometown Heroes benefit is another way Tractor Supply honors its commitment to community values and gratitude for service. The program is free to join and offers benefits every day. These include:
Top Tier Loyalty Status with 2% back every day Quarterly 5% off coupon 10% off on select Honoring Heroes Days which include: July 3 & 4 First Responders Day (October 28) Tractor Supply’s National Hometown Heroes Day (November 7) Veterans Day (November 11) To learn more about Neighbor’s Club Hometown Hero benefits, visit tractorsupply.com/neighborsclub.
While Memorial Day serves as a time to remember those who gave their lives for our country, it is also recognized as a day for families, friends and loved ones to gather in celebration of our great nation. Tractor Supply’s Memorial Day sale provides savings on everything necessary for summer gatherings, including grills and griddles, patriotic décor, apparel, summer toys and games, UTVs, kayaks and more. Tractor Supply stores will be open on Memorial Day from 8 a.m.-6 p.m. Find the full list of Memorial Day deals here.
About Tractor Supply Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 296 on the Fortune 500. The Company’s more than 52,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.
As part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, and Allivet, a leading online pet and animal pharmacy, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.
As of March 28, 2026, the Company operated 2,435 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260521191437/en/
If you're not seeking dividend-paying stocks for your portfolio, you should consider doing so. Here's why:
Dividend-Paying Status
Average Annual Total Return, 1973-2025
Dividend growers and initiators
10.22%
Dividend payers
9.20%
No change in dividend policy
6.87%
Dividend non-payers
4.21%
Dividend shrinkers and eliminators
(0.96%)
Equal-weighted S&P 500 index
7.74%
Data source: Ned Davis Research and Hartford Funds.
See? Unbeknownst to many investors, dividend-paying stocks can be great wealth builders in your long-term portfolio. And here's one you might want to take a look at: Tractor Supply (TSCO +0.31%). The stock recently sported a dividend yield of 3% -- and, when you factor in the value of share buybacks, the total yield for shareholders was recently a hefty 5.2%. Better still, the company has been hiking its payout for 17 years in a row.
Image source: Getty Images.
Meet Tractor Supply Founded way back in 1938, Tractor Supply is focused on serving recreational farmers, ranchers, homeowners, gardeners, and pet owners, among others. It's the largest rural lifestyle retailer in the U.S., with 2,435 Tractor Supply stores in 49 states. It also encompasses more than 200 Petsense by Tractor Supply stores in 23 states, as well as Allivet, an online animal pharmacy.
Should you invest in Tractor Supply? The stock was a bit of a market darling for many years, but it has struggled lately. Its recently reported first quarter featured overall revenue up just 3.6% year over year, with earnings per share dipping 9%. Part of the problem has been weakness in its "companion animal product" category -- which includes pet foods and generates around a quarter of the company's overall revenue. The company is addressing its issues, in part by beefing up its fresh and frozen pet food offerings.
CEO Hal Lawton summarized the quarter:
We delivered solid performance across the majority of our business in the first quarter, supported by our needs-based model and ongoing customer engagement. We continued to gain market share in farm and ranch and had strong double-digit growth in digital sales. Performance was positive across four of our five product categories. While companion animal trailed the Company average, we are taking decisive actions to improve its performance. ... We remain confident in our outlook and our ability to drive continued market share gains as our customers remain engaged. The underlying health of Tractor Supply remains strong, supported by a loyal customer base, a differentiated business model and consistent execution.
Today's Change
(
0.31
%) $
0.10
Current Price
$
30.86
Some research supports that view. For example, a 2026 report from Axiom Marketing found that gardening time and spending hit multi-year highs in 2025, with expectations for higher numbers in 2026.
It's true that Tractor Supply isn't performing as well as it might right now, but it's a sturdy and growing business with devoted customers, and plans to grow its revenue and earnings faster. (It's projecting revenue growth of 4% to 6% for 2026, for example.) The stock's recent forward-looking price-to-earnings (P/E) ratio of 15 is well below its five-year average of 22, suggesting that it's undervalued -- which is not surprising, given its drop of roughly 40% over the past three months.
Tractor Supply's solid dividend will reward patient believers while they wait for rosier results.
On May 26, 2026, Tractor Supply Co TSCO shares fell 5.8% to a current price of $29.80. The stock has seen significant volatility, with a 52-week range of $29.42 to $63.99, reflecting a substantial decline over the past year.
GF Value™ verdict: Current price is $29.80, which is 47.1% below the GF Value™ estimate of $56.35.GF Score™: 83/100, indicating a strong overall assessment.Most notable signal: Financial Strength is rated 6/10, suggesting moderate stability. Is TSCO Overvalued or Undervalued? With a GF Value™ of $56.35, Tractor Supply Co TSCO is currently trading at a significant discount, with a margin of safety of 47.1%. This valuation suggests that the stock is undervalued based on its intrinsic assessment. The GF Valuation label indicates that TSCO is significantly undervalued, presenting an opportunity for potential buyers. However, it is essential to approach this assessment cautiously, as such a discrepancy between market price and intrinsic value can also signal underlying issues affecting the company's performance.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the considerable gap between the current trading price and the GF Value™, there may be a strong case for investors seeking value, but it is necessary to consider the broader market context and potential risks involved.
How Does TSCO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.6x 24.9x (5-Year Median) Forward P/E 14.0x N/A Tractor Supply Co's current P/E ratio of 14.6x is significantly below its 5-year median P/E of 24.9x, reinforcing the perception that the stock is trading at a discount relative to its historical valuation. This P/E analysis aligns with the GF Value™ verdict, suggesting that TSCO is undervalued based on its earnings potential.
What Does TSCO's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 2/10 The GF Score™ of 83/100 indicates a strong overall assessment of Tractor Supply Co, with particularly high ratings in Profitability (9/10) and Growth (10/10). However, the Valuation (4/10) and Momentum (2/10) scores suggest that while the company has solid fundamentals and growth potential, it is currently facing challenges in valuation and price momentum. This combination of scores highlights a robust business model but signals caution regarding current market conditions.
What Are Insiders Doing with TSCO Stock? In the last three months, there have been no insider transactions reported for Tractor Supply Co. This absence of insider buying or selling may suggest that executives are confident in the company's long-term prospects or are taking a wait-and-see approach given the current market conditions. Such a pattern can be interpreted as a lack of urgency from insiders, which can sometimes indicate a stable outlook for the company.
What This Means for Investors Based on the GF Value™ assessment, Tractor Supply Co TSCO is currently undervalued, presenting a potential opportunity for those looking for investments with intrinsic value. However, the current market dynamics and performance trends suggest that caution is warranted, as external factors could impact the stock's recovery.
For the complete analysis, visit the Tractor Supply Co TSCO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TSCO's GF Score™?
The GF Score™ for Tractor Supply Co is 83/100, indicating a strong overall assessment with the potential for higher long-term returns.
Is TSCO overvalued or undervalued?
TSCO is currently undervalued based on the GF Value™ assessment, which indicates a significant margin of safety compared to its intrinsic value.
What is TSCO's P/E ratio?
TSCO's P/E (TTM) ratio is 14.6x, which is significantly below its 5-year median of 24.9x, supporting the conclusion that the stock is undervalued based on historical standards.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
BRENTWOOD, Tenn.--(BUSINESS WIRE)-- #TSC--Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the “Company”), today announced it has acquired the veterinary services business VIP Petcare (operating as VIP Petcare and PetVet) from PetIQ, a Bansk Group company. VIP Petcare is the largest provider of mobile veterinary care in the United States, operating community clinics in approximately 2,700 retail locations with national and regional retail partners, incl.
Transaction Marks a Key Step in PetIQ's Evolution into a Leading Branded Pet Health & Wellness Company
, /PRNewswire/ -- Bansk Group ("Bansk"), a consumer-focused private investment firm dedicated to building distinctive consumer brands, today announced that its portfolio company, PetIQ, Inc. ("PetIQ"), has completed the sale of its veterinary services business, VIP Petcare, to Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States. Financial terms of the transaction were not disclosed.
PetIQ is a leading pet health and wellness company that develops, manufactures and distributes a differentiated portfolio of branded over-the-counter ("OTC") pet medications and wellness products – including PetArmor®, Capstar®, Nexstar®, Minties®, VetIQ®, and Rocco & Roxie®, among others, available to pet parents through retail and e-commerce channels across more than 60,000 points of distribution nationwide. The sale of VIP Petcare reflects the substantial growth the business has achieved under Bansk's ownership since 2024, including establishing itself as the nation's preeminent mobile veterinary care platform.
"Bansk's strategy is centered around building exceptional brand-led consumer businesses and when we acquired PetIQ, we saw the opportunity to help shape a category leader in pet health and wellness," said Chris Kelly, Senior Partner of Bansk Group. "Since then, we've partnered closely with PetIQ leadership to enhance and scale VIP Petcare into the largest mobile veterinary care business in the country, while also accelerating PetIQ's vision to become the leading brand-led pet health and wellness company. Tractor Supply's acquisition is exactly aligned with the outcome our value creation playbook is designed to produce – and it is a reflection of our ability to build distinctive businesses that attract best-in-class strategic acquirers. We look forward to continuing to work with the PetIQ team to accelerate the growth of its core brands and products business, where we see significant runway ahead."
"This transaction marks an exciting new chapter for PetIQ, and we are well-positioned to realize our full potential as a leading brand-led pet health and wellness company," said Camillo Pane, Chief Executive Officer of PetIQ. "Bansk's partnership was instrumental in scaling VIP Petcare into the nation's preeminent mobile veterinary care business, and this outcome is a testament to what we built together. We are confident in what the team will continue to build as part of Tractor Supply Company."
William Blair served as financial advisor, and Davis Polk served as legal counsel to Bansk Group and PetIQ. Centerview Partners served as financial advisor, and Sidley Austin served as legal counsel to Tractor Supply.
About Bansk Group
Founded in 2019, Bansk Group is a New York-based private investment firm focused on investing in and building distinctive consumer brands. With over $5 billion in assets under management, the firm partners with differentiated brands across four primary consumer categories: personal care, consumer health, food & beverage, and household products.
Bansk's tenured group of investors and operators have invested more than $30 billion of equity capital across more than 40 transactions with some of the most innovative and well-known consumer companies in the world. With more than three decades of investment experience in the consumer products industry, a global network of relationships, and a tested value creation playbook, Bansk seeks to partner with exceptional founders and management teams to drive outsized organic and acquisitive growth and to position brands for enduring long-term success in the evolving consumer landscape www.banskgroup.com
About PetIQ
Headquartered in Idaho, PetIQ's purpose is to champion pet parents in raising healthier, happier pets by delivering smarter pet health and wellness solutions that are innovative, accessible, educational, and always effective. PetIQ specializes in developing, manufacturing, and distributing a diverse portfolio of high-quality, branded medications primarily focused on over-the-counter ("OTC") flea & tick products, dental treats, and other wellness and nutritional products for companion pets. With brands like PetArmor®, Capstar®, Nextstar®, Minties®, VetIQ®, and Rocco & Roxie® and world-class manufacturing and distribution facilities in Omaha, Nebraska, Springville, Utah and Daytona Beach, Florida, PetIQ is able to deliver trusted solutions to help pets live their best lives, every day.
About Tractor Supply Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 296 on the Fortune 500. The Company's more than 52,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.
As part of the Company's commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, and Allivet, a leading online pet and animal pharmacy, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer's doorstep, Tractor Supply is here to serve and support Life Out Here.
As of March 28, 2026, the Company operated 2,435 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.
Contacts
Bansk Group
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Joele Frank, Wilkinson Brimmer Katcher
+1 212-355-4449
Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the “Company”), today announced it has acquired the veterinary services business VIP Petcare (operating as VIP Petcare and PetVet) from PetIQ, a Bansk Group company.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260528480785/en/
Tractor Supply Company today announced it has acquired the veterinary services business VIP Petcare.
VIP Petcare is the largest provider of mobile veterinary care in the United States, operating community clinics in approximately 2,700 retail locations with national and regional retail partners, including 1,700 Tractor Supply locations, across 39 states and serving more than one million pets annually. Bringing VIP Petcare’s veterinary services capabilities in-house strengthens Tractor Supply’s existing pet health platform.
Strategic Rationale
Enhances Tractor Supply’s position as the trusted destination for affordable, convenient pet care in underserved rural and exurban markets across America Creates a differentiated, end-to-end pet care offering spanning veterinary services, pharmacy, pet services and retail Combines VIP Petcare’s in-store veterinary clinics and 24/7 vet access and Allivet’s pharmacy capabilities, all anchored by Tractor Supply’s nationwide footprint, into a seamless omnichannel offering Increases customer engagement and enhances opportunities for the Company’s Neighbor’s Club loyalty program Unlocks long-term growth potential through integrated services, expanded pet care access including veterinarian telehealth and increased customer lifetime value in an asset-light manner “VIP Petcare has been a strong partner in helping us expand access to affordable pet care, and this acquisition builds on the unique combination of assets we have assembled across veterinary services, pet specialty, digital pharmacy and retail stores to better serve the millions of Tractor Supply customers who care for pets and animals, while continuing to support pet parents through VIP Petcare’s broader retail partner network. We believe this transaction strengthens our long-term competitive positioning while leveraging existing infrastructure and customer relationships in a capital-efficient manner,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply. “By bringing together VIP Petcare’s leading veterinary services platform with Tractor Supply’s nationwide footprint, Neighbor’s Club loyalty program and Allivet’s digital pharmacy capabilities, we are creating meaningful opportunities to further leverage our pet care portfolio through a differentiated omnichannel offering. We are incredibly excited to welcome the VIP Petcare team to Tractor Supply as we build the future of pet care together.”
“We believe this transaction represents a great outcome for both PetIQ and Tractor Supply and an exciting next chapter for our Veterinary Services business. Tractor Supply is uniquely positioned to continue growing and investing in the Veterinary Services business, creating exciting long-term opportunities for our teams to continue delivering exceptional care to pets and families across the country,” said Camillo Pane, Chief Executive Officer of PetIQ.
“Tractor Supply has been our largest and most strategic retail partner for more than a decade, and the cultural and operational fit is exceptional,” said Ari Macerollo, Vice President and Head of Veterinary Services at VIP Petcare. “Joining Tractor Supply gives our veterinarians, field teams and pet parents an even stronger platform to continue delivering high-quality, affordable veterinary care to communities across the country through Tractor Supply locations and our broader network of retail partners.”
Founded in 1995 and headquartered in Eagle, Idaho, VIP Petcare has grown to become the largest provider of mobile veterinary care in the United States, hosting more than 60,000 community veterinary clinics annually and serving more than one million pets each year through a network of approximately 2,500 contracted veterinarians and 36 field offices across 39 states. Operating under the VIP Petcare and PetVet brands, the business runs 90-minute community clinics at host retail locations with walk-in and online pre-registration available, delivering essential preventive care, including vaccines, diagnostic testing, flea, tick and heartworm prevention, deworming, microchipping and nail trimming, at price points that are more than 50% less than a traditional veterinary visit.
Financial terms of the transaction were not disclosed. Centerview Partners served as financial advisor, and Sidley Austin served as legal counsel to Tractor Supply. William Blair served as financial advisor, and Davis Polk served as legal counsel to Bansk Group and PetIQ.
About Tractor Supply Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 296 on the Fortune 500. The Company’s more than 52,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.
As part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, and Allivet, a leading online pet and animal pharmacy, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.
As of March 28, 2026, the Company operated 2,435 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.
Forward-Looking Statements
This press release contains forward-looking statements. The forward-looking statements included herein are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, which address activities, events, or developments that we expect or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are usually identified by or are associated with such words as “intend,” “plan,” “believe,” “estimate,” “expect,” “anticipate” and/or the negatives or variations of these terms or similar terminology. Such forward-looking statements include those that address activities, events or developments that the Company or its management believes or anticipates may occur in the future, including the anticipated benefits of the transaction, such as anticipated tax benefits, earnings enhancements and synergies. All forward-looking statements are based upon the Company’s current expectations, various assumptions, and data available from third parties. The Company’s expectations and assumptions are expressed in good faith, and the Company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including: the risk that we may be unable to successfully integrate the acquired business; the risk that anticipated benefits of the transaction, including expected synergies, growth opportunities and strategic objectives, may not be realized in the anticipated timeframe or at all; potential adverse effects on relationships with employees, customers and other business partners; risks relating to licenses, permits and other governmental authorizations associated with the acquired business; the diversion of management’s attention from ongoing business operations and opportunities and the other factors discussed in “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025, subsequent Quarterly Reports on Form 10-Q and in the Company’s other filings with the Securities and Exchange Commission which are available at http://sec.gov. For any forward-looking statements contained in this or any other document, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and assumes no obligation to update publicly or revise any forward-looking statements in light of new information or future events.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260528480785/en/
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, today announced a major, storewide expansion across its truck, tool and hardware categories, tailored to the needs of its shoppers. Led by the official launch of SKIL Power Tools and a complete, solutions-based reset of the electrical aisle, these initiatives strengthen Tractor Supply's ability to equip project-driven customers looking to complete repairs, mainten.
Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, today announced a major, storewide expansion across its truck, tool and hardware categories, tailored to the needs of its shoppers. Led by the official launch of SKIL Power Tools and a complete, solutions-based reset of the electrical aisle, these initiatives strengthen Tractor Supply’s ability to equip project-driven customers looking to complete repairs, maintenance and home improvement jobs.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260601575275/en/
Tractor Supply Expands Truck, Tool and Hardware Assortment with Launch of SKIL Power Tools and Electrical Brands
These strategic investments combine accessible, high-performance power tools with a more intuitive, simplified shopping experience. By pairing professional-inspired tools with expanded electrical products from industry-leading brands, Tractor Supply is making it easier than ever for everyday DIYers, hobby farmers and contractors to find exactly what they need to get the job done in a single trip.
“We continue to see customers taking on more repair, maintenance and improvement projects themselves,” said Randall Dodds, Senior Vice President and General Merchandising Manager at Tractor Supply. “The addition of SKIL and the expansion of our electrical assortment reflect how Tractor Supply is evolving to better serve those project-driven customers with trusted brands, simplified shopping and solutions that fit the way they live and work.”
Performance Made Accessible with SKIL Power Tools
SKIL brings a 100-year legacy of proven performance rooted in real work. Built to handle tough conditions around the home or jobsite, the initial rollout includes over 30 tools and accessories in stores with an expanded assortment online. Key highlights of the lineup include the versatile flip drill, circular saw, impact driver and stapler, with an exclusive SKIL grease gun designed specifically for Tractor Supply customers scheduled to launch later this summer.
Designed with premium features at an affordable price, the SKIL brand delivers maximum convenience with universal USB-C charging and a single-battery system compatible across multiple tools. The assortment also has brushless motors for extended tool life and efficiency, all backed by a 5-year warranty for added confidence.
Project-Based Solutions in the Reimagined Electrical Aisle
Along with the new tools, Tractor Supply has completely refreshed its electrical aisle, adding 188 new SKUs from the nation’s top electrical, lighting and safety brands. The newly designed aisle is organized directly around how customers shop and work, bringing trusted national leaders like Klein Tools, Leviton, GE, Kidde and Coast together under one roof, balanced with Tractor Supply’s private label and exclusive offerings such as its Surge and JobSmart brands.
The updated layout covers complete project needs across electrical and wiring devices, testing tools, power cords, lighting solutions and fire preparedness. Built for real-world conditions, the category offers year-round essentials alongside critical seasonal solutions. Customers can easily find proper equipment for upcoming indoor and outdoor projects, storm preparedness, winter readiness and fire safety.
Gear Up for Father’s Day and Look Ahead to Tool Days
The truck and tool expansion arrives just in time for Father’s Day gifting as Tractor Supply offers a wide variety of tools, hardware and outdoor equipment perfect for every dad. To celebrate, all Tractor Supply locations will host an interactive, in-store Father’s Day event on Saturday, June 13, where families and children can visit their local store to color stickers and personalize a tackle box for dad.
The momentum will continue later this summer with Tractor Supply Tool Days. The highly anticipated seasonal event will showcase ultimate newness, hot deals and exclusive savings across all tool categories, highlighting the new SKIL Power Tools lineup.
To shop the new assortments, visit tractorsupply.com/tsc/brand/skil and tractorsupply.com/tsc/catalog/electrical.
About Tractor Supply Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 296 on the Fortune 500. The Company’s more than 52,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.
As part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, Allivet, a leading online pet and animal pharmacy, and VIP Petcare, the largest provider of mobile veterinary care in the United States, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.
As of March 28, 2026, the Company operated 2,435 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260601575275/en/
Inaugural Fan Fair X Partnership to Feature Authentic Storytellers Including 2026 Life Out Here Emerging Artist Winner Gloria Anderson
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Tractor Supply Company, the largest rural lifestyle retailer in the United States, is bringing the spirit of Life Out Here to country music’s biggest week through its inaugural sponsorship of the Tractor Supply Spotlight Stage at Fan Fair X during CMA Fest, highlighted by a special performance from 2026 Life Out Here Emerging Artist winner Gloria Anderson.
Located inside the Music City Center, the Tractor Supply Spotlight Stage will give fans an up-close experience with country music’s next generation of storytellers through intimate performances and live sets throughout CMA Fest from Thursday, June 4, through Sunday, June 7.
Tractor Supply is continuing to invest in supporting emerging artists and storytellers who reflect the values of the "Life Out Here" community. The Tractor Supply Spotlight Stage will feature live performances from 11 a.m. to 5:20 p.m. daily, showcasing a diverse lineup of country music’s most promising voices.
“Music has always been part of the heartbeat of Life Out Here,” said Kimberley Gardiner, Chief Marketing Officer at Tractor Supply. “Country music tells stories of hard work, family, community and perseverance—the same values that resonate deeply with our customers. Sponsoring the Spotlight Stage at CMA Fest gives us an opportunity to support emerging artists, celebrate authentic storytelling and help connect their music with fans across the country.”
A native of Luling, Texas, and Belmont University alumna, Anderson’s journey from thousands of submissions to the Spotlight Stage exemplifies the Life Out Here Emerging Artist Program’s mission to open doors for artists who live and love the rural lifestyle. Joining her on the stage is fellow program finalist Dzaki Sukarno, along with dozens of other rising stars including Austin Mackay, The BoykinZ, Jake Hoot and Sacha.
First launched in 2023 with country music powerhouse Lainey Wilson, Tractor Supply’s Life Out Here Emerging Artist Program continues its dedicated mission to discover and support up-and-coming talent who reflect the heart, grit and spirit of the rural lifestyle. For the 2026 edition, the company expanded its country music footprint by partnering with CMA Award-winning artist Cody Johnson to serve as the program’s primary mentor. Through this collaboration, a nationwide search was conducted to find authentic storytellers, ultimately crowning Anderson as the 2026 grand winner. As part of her once-in-a-lifetime Nashville prize package, Anderson received exclusive industry mentorship, a recording session at the iconic Blackbird Studio, and the opportunity to perform as the opening act before a private Cody Johnson concert prior to making her appearance on the Tractor Supply Spotlight Stage.
Fan Fair X is the ultimate destination for one-of-a-kind fan experiences, offering meet-and-greets and immersive exhibits. Tickets for Fan Fair X are available for purchase at CMAfest.com/fanfairx.
About Tractor Supply Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 296 on the Fortune 500. The Company’s more than 52,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.
As part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, Allivet, a leading online pet and animal pharmacy, and VIP Petcare, the largest provider of mobile veterinary care in the United States, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.
As of March 28, 2026, the Company operated 2,435 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.
About CMA Fest
For more than 50 years, CMA Fest has united the Country Music community, bringing fans, artists and industry professionals together for four unforgettable days in the heart of Nashville. What began in 1972 as Fan Fair® with just 5,000 attendees has evolved into the longest-running Country Music festival in the world, drawing an estimated 95,000 daily attendees. CMA Fest is more than a festival—it’s a celebration of the connection between artists and fans, featuring hundreds of performances and collaborations across multiple stages, once-in-a-lifetime moments, and the vibrant energy of Nashville, all fueling something bigger than the event itself. CMA Fest artists donate their time, turning their performances and appearances into purpose, with proceeds supporting music education through the CMA Foundation. This year marks the 23rd consecutive year that CMA has produced a summer music program to air as a network television special on ABC.
Retailer to Honor 250 Community Heroes Supporting Pets Across the Country; One Pet Hero Grand Prize Winner to Receive $5,000 for Animal Welfare
BRENTWOOD, Tenn.--(BUSINESS WIRE)--In honor of America’s 250th anniversary, Petsense, a pet specialty retailer and wholly-owned subsidiary of Tractor Supply Company, today announced the launch of its “Petsense® Celebrates Pet Heroes” Sweepstakes: an initiative to recognize the individuals and organizations who dedicate their lives to serving, healing, and caring for pets and pet parents in communities across the country. Nominations are now open through June 20, 2026.
During the “Petsense® Celebrates Pet Heroes” Sweepstakes, Petsense will award prizes valued at $130,000 to community members and organizations serving pets in a variety of ways, through efforts big and small.
Share Petsense by Tractor Supply operates in small and mid-size communities across America, places where a single vet, rescue or caretaker can make a real difference in the lives of pets. The “Petsense® Celebrates Pet Heroes Sweepstakes” aims to celebrate pet heroes of all kinds, including the veterinarian serving a small town, the rescue organization running on a shoestring budget, the dog walker who has become a lifeline for elderly neighbors or the groomer who volunteers every weekend at the local shelter.
“There are extraordinary people dedicating their time and energy to improving the lives of pets across the communities we serve,” said Neil Tenzer, Senior Vice President of Petsense by Tractor Supply. “No effort is too small when it comes to improving the lives of pets out here. This initiative is our way of shining a light on these unsung pet heroes who are truly worth celebrating.”
During the “Petsense® Celebrates Pet Heroes” Sweepstakes, Petsense will award prizes valued at $130,000 to community members and organizations serving pets in a variety of ways, through efforts big and small. To recognize individuals, groups and organizations, as well as the entrants who take the time to nominate their heroes, Petsense has established multiple opportunities to win prizes.
At the conclusion of the nomination period on June 20, Petsense will award a $250 gift card to 250 “Local Pet Heroes” and a cash prize of $5,000 will be awarded to one “Pet Hero Grand Prize Winner,” a verified non-profit organization nominated by sweepstakes entrants. Additionally, 250 sweepstakes entrants will receive a $250 Petsense gift card.
250 Local Pet Heroes
To support the work of individuals and groups who serve pets and pet parents in their immediate communities, entrants are encouraged to nominate them as a “Local Pet Hero.” They are defined as (but not limited to) community veterinarians, dog walkers, trainers, rehabilitators, pet sitters, groomers and more.
Nominees must be an individual or group with an express and verifiable mission to make a positive impact in the lives of pets and pet parents. Nominees must reside and operate within 25 miles of a Petsense store. 250 Local Pet Heroes will be selected to receive a $250 Petsense gift card, redeemable in store only. Plus, 250 Sweepstakes winners will receive a $250 Petsense gift card, redeemable in store only. One Pet Hero Grand Prize Winner
To support the work of verified, non-profit organizations with an express mission of serving pets and pet parents, Petsense will award a “Pet Hero Grand Prize” of $5,000. They are defined as a standout non-profit making an extraordinary impact in the lives of pets and pet parents and include charities, shelters, rescues, medical clinics and more.
Nominees must be a registered 501c3 organization with an express and verifiable mission to make a positive impact in the lives of pets and pet parents. One winner will be selected to receive a $5,000 charitable donation to continue their mission of serving pets. Key Dates
Nominations open: Monday, June 1, 2026 Nominations close: Saturday, June 20, 2026 Pet lovers can nominate pet heroes at Petsense.com/A250 and full rules can be found here. About Petsense by Tractor Supply
Petsense by Tractor Supply, a wholly owned subsidiary of Tractor Supply Company (NASDAQ: TSCO), is a pet specialty retailer focused on meeting the needs of pet owners, primarily in small and mid-size communities. Founded in 2005, Petsense by Tractor Supply specializes in providing a large assortment of pet food, supplies and services, such as grooming and training, and offering customers a tailored experience while providing the top-quality products they need at a price they love. Petsense by Tractor Supply carries a range of nationally recognized brands including Fromm, Orijen, Acana, Purina Pro Plan, Hill’s Science Diet, Victor, Royal Canin, and NutriSource. Petsense by Tractor Supply is also committed to promoting responsible pet ownership through pet adoptions, community involvement and education. As of March 28, 2026, the Company operated 208 total Petsense stores across 23 states. For more information on Petsense by Tractor Supply, visit www.Petsense.com.
Petsense by Tractor Supply Launches “Petsense ® Celebrates Pet Heroes” Sweepstakes, Honoring America's Unsung Animal Advocates In honor of America’s 250th anniversary, Petsense, a pet specialty retailer and wholly-owned subsidiary of Tractor Supply Company, today announced the launch of its “Petsense® Celebrates Pet Heroes” Sweepstakes: an initiative to recognize the individuals and organizations who dedicate their lives to serving, healing, and caring for pets and pet parents in communities across the country. Nominations are now open through June 20, 2026.
Petsense by Tractor Supply operates in small and mid-size communities across America, places where a single vet, rescue or caretaker can make a real difference in the lives of pets. The “Petsense® Celebrates Pet Heroes Sweepstakes” aims to celebrate pet heroes of all kinds, including the veterinarian serving a small town, the rescue organization running on a shoestring budget, the dog walker who has become a lifeline for elderly neighbors or the groomer who volunteers every weekend at the local shelter.
“There are extraordinary people dedicating their time and energy to improving the lives of pets across the communities we serve,” said Neil Tenzer, Senior Vice President of Petsense by Tractor Supply. “No effort is too small when it comes to improving the lives of pets out here. This initiative is our way of shining a light on these unsung pet heroes who are truly worth celebrating.”
During the “Petsense® Celebrates Pet Heroes” Sweepstakes, Petsense will award prizes valued at $130,000 to community members and organizations serving pets in a variety of ways, through efforts big and small. To recognize individuals, groups and organizations, as well as the entrants who take the time to nominate their heroes, Petsense has established multiple opportunities to win prizes.
At the conclusion of the nomination period on June 20, Petsense will award a $250 gift card to 250 “Local Pet Heroes” and a cash prize of $5,000 will be awarded to one “Pet Hero Grand Prize Winner,” a verified non-profit organization nominated by sweepstakes entrants. Additionally, 250 sweepstakes entrants will receive a $250 Petsense gift card.
250 Local Pet Heroes
To support the work of individuals and groups who serve pets and pet parents in their immediate communities, entrants are encouraged to nominate them as a “Local Pet Hero.” They are defined as (but not limited to) community veterinarians, dog walkers, trainers, rehabilitators, pet sitters, groomers and more.
Nominees must be an individual or group with an express and verifiable mission to make a positive impact in the lives of pets and pet parents. Nominees must reside and operate within 25 miles of a Petsense store. 250 Local Pet Heroes will be selected to receive a $250 Petsense gift card, redeemable in store only. Plus, 250 Sweepstakes winners will receive a $250 Petsense gift card, redeemable in store only. One Pet Hero Grand Prize Winner
To support the work of verified, non-profit organizations with an express mission of serving pets and pet parents, Petsense will award a “Pet Hero Grand Prize” of $5,000. They are defined as a standout non-profit making an extraordinary impact in the lives of pets and pet parents and include charities, shelters, rescues, medical clinics and more.
Nominees must be a registered 501c3 organization with an express and verifiable mission to make a positive impact in the lives of pets and pet parents. One winner will be selected to receive a $5,000 charitable donation to continue their mission of serving pets. Key Dates
Nominations open: Monday, June 1, 2026 Nominations close: Saturday, June 20, 2026 Pet lovers can nominate pet heroes at Petsense.com/A250 and full rules can be found here. About Petsense by Tractor Supply
Petsense by Tractor Supply, a wholly owned subsidiary of Tractor Supply Company (NASDAQ: TSCO), is a pet specialty retailer focused on meeting the needs of pet owners, primarily in small and mid-size communities. Founded in 2005, Petsense by Tractor Supply specializes in providing a large assortment of pet food, supplies and services, such as grooming and training, and offering customers a tailored experience while providing the top-quality products they need at a price they love. Petsense by Tractor Supply carries a range of nationally recognized brands including Fromm, Orijen, Acana, Purina Pro Plan, Hill’s Science Diet, Victor, Royal Canin, and NutriSource. Petsense by Tractor Supply is also committed to promoting responsible pet ownership through pet adoptions, community involvement and education. As of March 28, 2026, the Company operated 208 total Petsense stores across 23 states. For more information on Petsense by Tractor Supply, visit www.Petsense.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260604883227/en/
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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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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Key Takeaways BigBear.ai Q1 gross margin jumped to 34% as generative AI platform revenues expanded.BBAI backlog rose 14% sequentially to $281.9M on defense and airport security contracts.BigBear.ai strengthened its liquidity position after converting most 2029 notes into equity. BigBear.ai Holdings, Inc. (BBAI - Free Report) is doubling down on generative AI, and early signs suggest the strategy is beginning to reshape its revenue mix in a meaningful way. While first-quarter 2026 revenues dipped slightly year over year to $34.4 million, the company delivered a sharp improvement in gross margin, which expanded 1,278 basis points to 34%. The primary driver was the higher-margin generative AI platform revenues tied to the Ask Sage acquisition.
BigBear.ai’s acquisition of Ask Sage in late 2025 appears to be more than just a technology add-on. The platform is already helping the company transition away from lower-margin services and work toward scalable AI-driven products. In the quarter, Ask Sage secured contracts with NASA, the Army Intelligence & Security Command and the Naval Research Lab, reinforcing BigBear.ai’s growing relevance in mission-critical AI deployments. BBAI is also benefiting from rising demand across national security and trade-and-travel markets. A $53 million classified intelligence contract, airport security wins at Chicago O’Hare and Dallas-Fort Worth, and growing traction for Shipyard AI collectively pushed backlog 14% higher sequentially to $281.9 million.
Importantly, BBAI strengthened its balance sheet significantly after converting most of its 2029 notes into equity, ending the quarter with $431.5 million in cash and investments. That liquidity gives management flexibility to pursue additional AI investments and strategic expansion initiatives.
Still, risks remain. Revenue growth remains uneven, operating losses persist and SG&A expenses climbed sharply due to integration and growth investments. Yet, if BigBear.ai can continue shifting toward higher-margin generative AI contracts, its evolving revenue mix could become a far more compelling long-term growth story.
BigBear.ai, Palantir & Booz Allen Hamilton Battle for AI EdgeBigBear.ai is banking on AI-powered decision intelligence and so are the market competitors, including Palantir Technologies Inc. (PLTR - Free Report) and Booz Allen Hamilton Holding Corporation (BAH - Free Report) . However, their competitive positioning differs sharply.
BigBear.ai remains a niche, but fast-evolving player focused on defense, border security and autonomous decision-making platforms such as ConductorOS and Ask Sage. On the other hand, Palantir operates at a far greater scale with deeply integrated AI and data platforms like Gotham, Foundry and AIP, enabling governments and enterprises to unify massive datasets, automate workflows and deploy large language models securely. While Palantir leads in scale and platform monetization, BBAI is positioning itself as a specialized AI innovator targeting high-growth defense and intelligence niches.
On the other hand, Booz Allen Hamilton takes a more consulting-driven approach, blending AI software, cybersecurity and analytics with long-standing federal advisory relationships. Unlike BigBear.ai’s product-heavy model or Palantir’s platform dominance, Booz Allen Hamilton leverages hybrid consulting-and-engineering capabilities to deliver enterprise-scale digital modernization programs.
BBAI Stock’s Price Performance & Valuation TrendShares of this Virginia-based AI-powered decision intelligence solutions provider have inched up 2% 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 13.31, 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 30 days, and 19 cents, which has remained stable over the same time frame, respectively. However, the revised estimates for 2026 and 2027 indicate year-over-year growth of 69.5% and 24%, respectively.
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.
Many artificial intelligence (AI) stocks skyrocketed over the past few years as more companies embraced AI-powered analytics services, generative AI platforms, and agentic AI tools. That boom should continue for the foreseeable future, driving the market's top AI stocks even higher.
Yet not every AI stock that glitters is gold. Let's see which two AI stocks you should avoid in this wobbly market -- and which high-flying AI stock is still worth buying today.
Image source: Getty Images.
BigBear.ai (BBAI +0.37%) and C3.ai (AI +0.65%) both develop AI modules that can be plugged into an organization's existing software infrastructure to analyze and automate certain tasks.
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BigBear.ai's modules are designed for edge networks, and it generates most of its revenue from government and defense contracts. C3.ai's modules are designed for a broader range of computing platforms and serve a more diverse mix of enterprise and government clients.
From 2021 to 2025, BigBear.ai's revenue declined from $146 million to $128 million, while its net loss widened from $124 million to $294 million. That decline was caused by the bankruptcy of its top customer, Virgin Orbit, competition from similar AI companies, and fierce macro headwinds. BigBear.ai's sales slumped even after it acquired the AI vision firm Pangiam in 2024, won several new government contracts, and the broader AI market expanded.
From 2025 to 2027, analysts expect BigBear.ai's revenue to grow at a 12% CAGR to $159 million, but most of that growth will come from its recent acquisition of the generative AI platform provider, Ask Sage. With a market cap of $2.1 billion, this lackluster AI stock still trades at 15 times this year's sales -- and it could sink much lower in a messy market downturn.
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From fiscal 2022 to fiscal 2025 (which ended last April), C3.ai's revenue jumped from $183 million to $389 million, but its net loss widened from $56 million to $289 million. Its top line grew as it launched new generative AI modules, gained more government contracts, and renewed a key joint venture with Baker Hughes through 2028. However, its gross margins shrank as it relied more heavily on lower-margin services and usage-based fees (rather than its stickier subscriptions) to drive its sales. It also faced stiff competition from similar companies.
From fiscal 2025 to fiscal 2028, analysts expect C3.ai's revenue to drop from $389 million to $251 million as it loses ground to its competitors, disrupts its own sales teams with a major restructuring, and cannibalizes its own subscriptions with its usage-based plans. With a market cap of $1.3 billion, C3.ai might not seem expensive at five times this year's sales, but its upside will remain limited as long as it can't resolve its most pressing problems.
The AI stock to buy: Broadcom Broadcom (AVGO +1.25%) sells a wide variety of chips and infrastructure software. It aggressively expanded both segments with big acquisitions over the past decade.
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From fiscal 2021 to fiscal 2025 (which ended last November), Broadcom's revenue and adjusted earnings before interest, taxes, and depreciation (EBITDA) grew at CAGRs of 24% and 27%, respectively. Most of Broadcom's recent growth came from its sales of customized application-specific integrated circuits (ASICs) for AI applications. Its top hyperscaler customers -- including Meta and Alphabet -- work with the company to create customized ASICs for their own data centers to boost efficiency, cut costs, and curb their long-term dependence on Nvidia's GPUs.
In fiscal 2025, its sales of AI chips surged 65% to $20 billion, accounting for 31% of its top line and offsetting its slower sales of non-AI chips and infrastructure software. It expects that figure to soar to $60-$90 billion by the end of fiscal 2027 as the AI market expands.
From fiscal 2025 to fiscal 2028, analysts expect Broadcom's revenue and adjusted EBITDA to both grow at a 48% CAGR. Its enterprise value of $2.1 trillion might seem high, but it still looks surprisingly cheap at 18 times next year's adjusted EBITDA. That makes it a much better play than C3.ai or BigBear.ai on the ongoing AI boom.
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.
MCLEAN, Va.--(BUSINESS WIRE)--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.
“Securing the global supply chain requires innovation, trust, and the ability to verify each handoff along the way,” said Kevin McAleenan, CEO, BigBear.ai.
Share 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.
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/
Despite massive rallies across the sector over the last year, bearish traders continue piling into several speculative AI names. Though this bearish positioning reflects legitimate concerns, there is always the potential for sharp volatility and even short squeezes should momentum persist. Among the most heavily shorted AI plays on Wall Street are BigBear.ai Holdings Inc (NYSE:BBAI), C3.ai Inc (NYSE:AI), SoundHound AI Inc (NASDAQ:SOUN), and Tempus AI Inc (NASDAQ:TEM). And Nvidia (NVDA) earnings after the close could draw even more attention to the sector.
BigBear stock was last seen up 6.8% at $4.10, looking to snap a three-day losing streak after news that a client will deploy its artificial intelligence-powered cargo security management solution in the Panama canal. The shares are down 24% in 2026, but just reclaimed support at the 60-day moving average, which kept gains in check last month. Short interest represents 29.6% of BBAI's available float, and would take shorts nearly four days to cover, at the stock's average pace of trading.
C3.ai stock is also on the rise today, last seen up 4.5% at $9.22. The stock has found support at the $8 level, but is struggling with long-term pressure at the 80-day moving average amid a 31.6% year-to-date deficit. Short interest represents 43% of the stock's available float, or over eight days' worth of pent-up buying power.
SoundHound stock is trading flat at $8.45 today, and also has support at the $8 level. The equity has struggled to stage a meaningful rally since its March 30 record low of $7.67, and is down 15.3% since the start of the year. Of the stock's available float, 39.7% is sold short. It would take traders nearly six days to fully buy back their bearish bets.
TEM is arguably the most interesting of the four, as it resides in the newest AI battleground, healthcare. At last check, shares of Tempus AI were off 0.4% at $35.46, nearing its late-March lows and sporting a 23.1% year-to-date deficit. Short interest accounts for 24.5% of the stock’s available float, representing nearly five days of potential buying pressure.
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.
Key Takeaways BBAI grew Q1 2026 backlog to approximately $282M, up 14% from Q4 2025 on new orders booked.BBAI booked a large classified sole-source deal with a roughly $53M ceiling, expected to run over two years.BBAI's wins span airports, shipbuilding and GenAI, alongside reaffirmed 2026 revenue guidance of $135M-$165M. BigBear.ai Holdings, Inc. (BBAI - Free Report) is building a stronger contract base, with first-quarter backlog growth adding visibility across its national security, intelligence, trade and travel markets.
The company ended the first quarter of 2026 with a backlog of approximately $282 million, up roughly 14% from the fourth quarter of 2025. The increase was primarily driven by new orders booked during the quarter, including a large classified sole-source contract with an intelligence community customer. The award carries a ceiling value of approximately $53 million and is expected to be executed over the next two years, with BBAI serving as the prime contractor.
This backlog expansion marks an important step in BigBear.ai’s effort to strengthen revenue visibility across multiple end markets. The related contract activity was broad-based rather than concentrated in a single area. In trade and travel, the company is deploying veriScan and TrueFace capabilities at Chicago O’Hare and Dallas-Fort Worth under contracts with a combined value of $7 million. In shipbuilding, BBAI secured new work with Chantier Davie and Bollinger Shipyards, reflecting demand for ProModel and Shipyard AI. The company also expanded its GenAI footprint through new Ask Sage contracts with NASA, the Army’s Intelligence and Security Command and the Naval Research Lab.
The broader takeaway is that BBAI is entering the rest of 2026 with a deeper base of contracted work across multiple growth priorities. The company’s recent wins include classified intelligence work, airport deployments, shipbuilding-related demand and GenAI platform contracts, giving management more visible opportunities to convert customer activity into revenues over time.
For BBAI, the next phase of the growth narrative likely depends on backlog conversion. The company has reaffirmed 2026 revenue guidance of $135 million to $165 million, but the pace at which recent awards move into recognized revenues will be the key execution metric. If the new contracts ramp up on schedule, BBAI’s expanding backlog could provide a stronger base for revenue growth over the coming quarters.
Peer Comparisons: Palantir & C3.aiPalantir Technologies Inc. (PLTR - Free Report) provides a useful contrast to BBAI because it has already built a much larger revenue and deal-value base from AI deployments. In the first quarter of 2026, Palantir ended with $11.8 billion in total remaining deal value, up 98% year over year, and $4.5 billion in remaining performance obligations, up 134%. Palantir also reported 85% year-over-year revenue growth.
C3.ai, Inc. (AI - Free Report) is a closer comparison of the conversion challenge. The company reported $46.9 million in quarterly bookings and had 258 active IPDs at quarter-end, including projects that were active, extended, converted to subscription or consumption contracts, or under negotiation for conversion. C3.ai also said that federal, defense and aerospace bookings increased 134% year over year and accounted for 55% of total bookings, showing demand in areas that overlap with BBAI’s national security focus.
Against this backdrop, BBAI’s competitive position rests on execution. Palantir reflects a more mature contract-to-revenue model, while C3.ai highlights the importance of moving AI engagements from bookings and IPDs into subscription or consumption contracts. BBAI’s next test is whether its intelligence, airport, shipbuilding and Ask Sage wins can support a steadier revenue trajectory.
BBAI Stock Price Performance & Valuation TrendShares of BBAI have trended 12.1% upward over the past month, outperforming the Zacks Computers - IT Services industry, as shown below.
BBAI’s 1-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 13.16, 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 earnings implies a year-over-year increase of 69.5%. Estimates for 2026 loss per share have narrowed in the past 30 days.
EPS Trend of BBAI
Image Source: Zacks Investment Research
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 shares are powering higher. What’s behind BBAI gains? With Technology leading all sectors today (up 1.36%), BBAI's outsized move looks tied to bullish positioning in higher-beta software/AI plays rather than a defensive tape. Market breadth is a bit mixed (5 sectors advancing vs. 6 declining), which can amplify moves in stocks that already have momentum.
BBAI is also rebounding from a March swing low and trying to extend a recovery that's been building since spring, which can attract trend-followers when the broader tape is green. The stock is now working back toward longer-term reference levels after spending much of the past year below its prior peak.
Critical Levels To Watch For BBAI StockFrom a trend perspective, BBAI is trading above its 20-day SMA ($4.15) and 50-day SMA ($3.82), and it's also above the 100-day SMA ($4.35), which supports the idea that the intermediate trend has turned up. The bigger hurdle is the longer-term structure: the stock is still trading 9.4% below its 200-day SMA ($5.31), and the 50-day remains below the 200-day (a "death cross" that formed in February).
Momentum looks to be improving: MACD is above its signal line and the histogram is positive, which typically means upside pressure is building versus the prior downswing. In plain terms, when MACD is above its signal line, it suggests sellers are losing control and buyers are starting to press.
Key Resistance: $5.31 — aligns with the 200-day SMA, a common "line in the sand" for longer-term trend shifts Key Support: $4.15 — near the 20-day SMA, which has been acting as a short-term trend guide during the rebound BBAI Stock Price Movement On ThursdayBBAI Stock Price Activity: BigBear.ai Holdings shares were up 10.30% at $4.82 at the time of publication on Thursday, according to Benzinga Pro data.
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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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Wall Street fixates on chipmakers and hyperscalers, but the harder problem in AI is implementation. Getting agentic workflows, orchestration platforms, and AI-native applications into Fortune 1000 environments is where projects stall, and where specialist services firms quietly get paid. With corporate IT budgets cautious, several implementation plays trade under $15: real AI revenue, real customers, small-cap value pricing.
Four stocks under $15 worth examining as under-the-radar enterprise AI implementation plays.
Grid Dynamics (NASDAQ: GDYN) Grid Dynamics (NASDAQ:GDYN) builds agentic systems for large enterprises with a recently launched GAIN platform suite covering commerce, software development, risk, and physical AI. Shares sit at $7.13, down 45.61% over the past year as IT spending pauses dragged the stock into small-cap value territory.
Q1 2026 revenue came in at $104.10 million, with AI revenues reaching 29.3% of total revenues and full-year 2025 AI revenue clearing $90 million at 30% year-over-year growth. The balance sheet is essentially debt-free with $327.47 million in cash, and analysts carry a $9 target with six buy ratings and zero sells. CEO Leonard Livschitz called “2026 a pivotal year for the accelerated adoption of our AI offerings”. The bull case: a pure-play AI implementation services business at roughly 1.4x sales, with hyperscaler partnerships and a top-five customer roster now fully diversified away from retail.
Risks include client concentration and gross margin compression to 34.8%. For investors wanting AI exposure without hardware-layer multiples, Grid Dynamics is the clearest architecture play.
C3.ai (NYSE: AI) C3.ai (NYSE:AI | AI Price Prediction) sells the C3 Agentic AI Platform and industry applications, with heavy federal, defense, and aerospace exposure. Shares trade at $9.29, down 59.13% over a year after Q3 FY26 revenue collapsed 46.1% to $53.26 million, missing expectations.
The bull case is a turnaround. New CEO Stephen Ehikian is six months into restructuring expected to generate roughly $135 million in annual operating expense savings, including a 26% workforce cut. Federal, defense, and aerospace bookings rose 134% year over year and made up 55% of total bookings, while subscription revenue is now 90% of the mix. Ehikian says C3 is “uniquely positioned to win in Enterprise AI” as a “more agile, more disciplined, and more accountable organization.”
Risks are clear: cash burn accelerated to negative $56.2 million in free cash flow, gross margin compressed to 17%, and a securities class action is pending. For aggressive investors, federal momentum and cost cuts offer a credible recovery angle at a deeply reset price.
BigBear.ai (NYSE: BBAI) BigBear.ai (NYSE:BBAI) runs an AI-powered decision intelligence platform for national security, defense, and border operations, recently bolstered by Ask Sage and CargoSeer acquisitions. Shares trade at $4.18, placing the company in small-cap territory after a volatile year.
The setup is a balance sheet transformation. BigBear.ai ended 2025 with $462 million in cash and investments after raising $693 million and reducing debt by more than 90%. The $250 million Ask Sage acquisition adds a generative AI platform with 100,000+ users across 16,000 government teams. Management guided FY26 revenue to $135 million to $165 million, with a backlog above $400 million. CEO Kevin McAleenan said the company is in “the strongest financial position in the company’s history.”
In Q4 2025, revenue fell 38% year over year, gross margin compressed to 20.3%, and the company carries a high beta of 3.051 with material weakness in internal controls. The defense AI tailwind plus a fortress balance sheet makes this a watchable speculative position.
DXC Technology (NYSE: DXC) DXC Technology (NYSE:DXC) is a global IT services firm whose newly launched OASIS AI orchestration platform positions it to ride enterprise AI transformation budgets. Shares trade at $9.50, down 37.38% on the year.
The valuation case is strongest here. DXC generated $713 million in free cash flow in FY26 against a market cap near $1.55 billion, repurchased $250 million of stock, and trades at a forward earnings multiple of just 4x. Insurance Software & Services grew 7.3% in Q4 and Consulting & Engineering returned to growth at 1.7%. CEO Raul Fernandez framed the OASIS launch as part of repositioning DXC for “the next phase of enterprise IT and AI driven transformation.”
FY27 guidance calls for revenue of $12.11 billion to $12.35 billion with organic declines, and Global Infrastructure Services shrank 10.6% organically. Sub-5x free cash flow on a real AI orchestration story is rare.
A single-digit share price alone is not a reason to buy. Each has clear execution risk, and the AI implementation theme is only as durable as the corporate budgets funding it. Use these profiles as a starting point for your own research.
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
Key Takeaways BBAI is targeting homeland and national security AI, with border, intel and defense analytics focus.BigBear.ai landed a classified sole-source deal worth about $53M, reinforcing its government credibility.BBAI backlog rose 14% to $281.9M as margins improved on growing adoption of generative AI products. BigBear.ai Holdings, Inc. (BBAI - Free Report) is increasingly positioning itself as one of the more focused artificial intelligence players in the homeland security and national security markets. While many AI companies target broad commercial opportunities, BigBear.ai is concentrating on mission-critical government applications, ranging from border security and intelligence operations to defense analytics and secure generative AI solutions.
The company’s first-quarter 2026 update highlighted growing momentum in these markets. Management emphasized that national security and trade-and-travel remain its two primary growth pillars, with several recent contract wins reinforcing that strategy. Most notably, BigBear.ai secured a classified sole-source contract with an intelligence community customer valued at approximately $53 million, underscoring its growing credibility within sensitive government programs.
Homeland security opportunities are also expanding. Management noted that funding visibility at the Department of Homeland Security (“DHS”) has improved and that the company is actively pursuing multiple DHS-related opportunities. The addition of former Acting Customs and Border Protection Commissioner Troy Miller is expected to strengthen BigBear.ai’s relationships across homeland security, border protection and law-enforcement agencies.
Beyond traditional analytics, BigBear.ai is broadening its AI offerings through products such as Ask Sage, a secure generative AI platform that recently added customers including NASA, the Army Intelligence and Security Command, and the Naval Research Laboratory. These wins support the company’s shift toward higher-margin technology products and software-based revenue streams.
The financial foundation is also improving. Backlog increased 14% sequentially to $281.9 million, driven largely by national security awards, while gross margin expanded significantly due to the growing adoption of generative AI products. The company ended the quarter with more than $431 million in cash and investments, providing flexibility to pursue future growth initiatives.
Given rising government demand for AI-enabled security, intelligence and border-management solutions, BigBear.ai appears increasingly well-positioned to emerge as a notable homeland security AI stock.
How BigBear.ai Compares With Homeland Security AI RivalsBigBear.ai operates in a highly competitive government AI and defense technology market, where larger players such as Palantir Technologies (PLTR - Free Report) and Leidos Holdings (LDOS - Free Report) also pursue homeland security and intelligence opportunities.
Palantir remains one of the most prominent AI platforms serving U.S. defense, intelligence and law enforcement agencies. Palantir’s Gotham platform is widely used for intelligence analysis, threat detection and operational decision-making. While Palantir benefits from a much larger scale and broader customer base, BigBear.ai differentiates itself through its specialized focus on mission-ready AI, border security, trade facilitation and operator-centric solutions. As government agencies increasingly adopt AI, Palantir and BigBear.ai are likely to compete for a growing pool of security-related contracts.
Leidos is another major competitor with deep relationships across the DHS, intelligence agencies and defense organizations. Leidos combines advanced analytics, cybersecurity and mission-support services to address national security challenges. However, Leidos is a diversified government contractor, whereas BigBear.ai is positioning itself as a more focused AI-first security company. As homeland security agencies expand investments in AI-driven threat detection, border management and intelligence platforms, Leidos and BigBear.ai are expected to encounter each other more frequently in federal procurement opportunities.
While Palantir and Leidos currently possess greater scale, BigBear.ai’s growing backlog, specialized expertise and expanding DHS presence could help it carve out a meaningful niche in the homeland security AI market.
BBAI Stock’s Price Performance, Valuation Trend & EPS Estimate TrendShares of BBAI have trended 12.2% 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 14.96, 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 30 days, as shown below. The estimated figure indicates a narrower loss from the year-ago level of 82 cents per share.
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.
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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.
Should You Invest $1,000 in BigBear.ai Right Now?Before you consider BigBear.ai, you'll want to hear this.
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Shares of Cava Group (CAVA +2.58%) rose after the Mediterranean-cuisine restaurant operator saw robust same-store sales growth and raised its full-year guidance. The stock is up nearly 40% year to date, but still down close to 10% over the past year.
Let's take a closer look at the company's latest results and prospects to see if now is the time to buy shares.
Image source: The Motley Fool.
Strong growth After a tough 2025, as its same-store sales growth slowed due to lapping the introduction of its hugely popular grilled steak option in 2024, Cava is back with a vengeance in 2026. Its comparable restaurant sales surged 9.7% in the first quarter, led by a 6.8% increase in traffic. Meanwhile, the company had a 1.4% price increase in January, saying it wasn't concerned with rivals' discounting. The same-store sales growth was a huge jump from the 0.5% increase it saw in Q4.
Overall revenue for the quarter surged 32% year over year to $434.4 million. It opened 20 new locations in the quarter, bringing its total to 459, a 20% increase versus a year ago.
The company continues to expand, with a focus on Midwestern markets. It slightly raised its outlook for new restaurant openings to 75-77, up from a prior estimate of 74-76 this fiscal year. Its goal is to have at least 1,000 restaurants by 2032.
Its restaurant-level margins came in at 25.1% in the quarter, unchanged from a year ago. Restaurant-level margins measure how profitable a chain's individual restaurants are before corporate costs. It expects a 2026 restaurant-level margin of between 23.7% and 24.3%.
On the profitability front, Cava's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 38% year over year to $61.7 million. The company also generated $64.1 million in operating cash flow for the quarter and $15.5 million in free cash flow.
Today's Change
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Is it time to buy the stock? There are a lot of things to like about Cava. It has strong restaurant-level margins and robust average unit volumes of $3 million. The company has shown in the past that its menu item innovations, such as grilled steak, can help ignite same-store sales growth, and it is just now introducing salmon, which could be its next big driver. Meanwhile, with 459 locations, it has a huge expansion runway in front of it.
That said, with a $9.5 billion market cap and 459 stores with $3 million in sales each, investors are paying around 7 times each store's average unit volume. No one would come close to paying $20.7 million for a single restaurant doing $750,000 in profits (and this is before any corporate overhead costs).
If the company can grow to 1,500 locations in the next decade and continue to increase average unit volumes to around $4 million, you can still make money on the stock long term. However, you're paying a huge multiple today and needing everything to go right. As such, I'd wouldn't chase the stock at this valuation.
Guzman y Gomez Mexican Kitchen, an Australian-born Chipotle rival that once planned to open hundreds of U.S. locations, has abruptly closed all of its American restaurants after six years in the Chicago area.
"All GYG USA restaurants permanently closed," a message on the company’s U.S. website says. "Effective from May 22nd, GYG USA restaurants will cease trading. Thank you for your support."
The chain also announced the move on Instagram, thanking customers and employees in Chicagoland, where all eight of its U.S. restaurants were located.
"After six years of burritos and big dreams in Chicagoland, we've made the difficult decision to close our US restaurants," the post read. "To every guest who came through our doors – you chose us, and we never took that for granted."
CAVA BUCKS RESTAURANT INDUSTRY TREND WITH SUCCESSFUL NO-DISCOUNT STRATEGY
A Guzman y Gomez restaurant in Sydney, Australia, on Wednesday, Feb. 18, 2026. (Brent Lewin/Bloomberg via Getty Images)
Guzman y Gomez's U.S. website shows just a message of its sudden closing Friday.
"To our team – thank you. Your passion and your purpose built something special. If you're ever in Australia, Singapore or Japan, come find us – we'll have your favs waiting for you. Chicagoland, Thank you!"
The shutdown marks a sharp reversal for Guzman y Gomez, which had recently reaffirmed its intent to expand in the U.S. market. The company (ASX: GYG) was founded in Australia by native New Yorkers Steven Marks and Robert Hazan and made its U.S. debut in 2020 with ambitions to build a much larger American footprint.
"I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum," Marks said in an Australian Securities Exchange announcement, Business News Australia reported.
An employee prepares food at a Guzman y Gomez restaurant in Sydney, Australia, on Wednesday, Dec. 13, 2023. (Brent Lewin/Bloomberg via Getty Images)
"Having spent the last three months in the US, I realized this was going to take significantly more time and capital than we had expected.
"In assessing the trajectory of the current network, the board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital."
FMR FAST FOOD CEO PREDICTS MORE RESTAURANTS WILL CLOSE NATIONWIDE OVER HIGHER PRICES
Guzman y Gomez says adios to the U.S., but remains active in Australia, Japan and Singapore. (Guzman Y Gomez/Instagram)
The company chose the Chicago area as its entry point. At the time, its founders said they intended to open "hundreds, if not thousands" of Guzman y Gomez locations across the country.
Instead, the company is exiting the U.S. entirely, which has helped is stock price in Australia surge more than $3 Australian from $18.05 to $21.10 when the news dropped Friday morning.
"We have a long runway ahead of us in Australia as we progress towards our longterm target of 1,000 restaurants and segment underlying EBITDA as a percentage of network sales of 10%," Marks said.
"Concentrating our capital, focus and infrastructure behind this opportunity is the most effective way to compound shareholder value over the long term."
The retreat comes as U.S. restaurants face pressure from cautious consumers, higher food costs and declining traffic.
ITALIAN RESTAURANT CHAIN FILES FOR BANKRUPTCY, CITING INFLATION AND HIGHER INTEREST RATES
Guzman y Gomez (ASX: GYG), an Australian-based Chipotle rival in Chicago, is forced to close all its Chicago-area restaurants. (Brent Lewin/Bloomberg via Getty Images)
TheStreet reported that three in 10 Americans have cut back on retail spending and restaurant visits compared with a year earlier, citing S&P Global data. Food-away-from-home prices rose 39.3% from January 2019 to January 2026, far faster than in the previous seven-year period, according to the same report.
Those headwinds have weighed on chains across the industry, especially those trying to scale in crowded categories.
Guzman y Gomez positioned itself as a cleaner take on fast-casual Mexican food, touting no added preservatives, no artificial flavors, no added colors and no "unacceptable additives" on its Australian website.
Its U.S. closure leaves Chipotle — which has roughly 4,000 restaurants — without one of its smaller fast-casual Mexican challengers in the American market.
Ticker Security Last Change Change % CMG CHIPOTLE MEXICAN GRILL INC. 30.49 +0.07 +0.25% CAVA CAVA GROUP INC 83.62 +2.08 +2.56% QSR RESTAURANT BRANDS INTERNATIONAL INC. 73.39 +0.17 +0.23% GET FOX BUSINESS ON THE GO BY CLICKING HERE
RBC Capital Markets analyst Michael Toner told Reuters the exit could be positive for Guzman y Gomez’s broader business because its U.S. operations had limited prospects and were weighing on earnings.
"The U.S. business had very low prospects of being successful, and the losses of the business were weighing down the earnings of the group so the sooner exit than anticipated is positive," Toner said.
Cava Group (CAVA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this Mediterranean restaurant chain have returned -9.8%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Retail - Restaurants industry, which Cava falls in, has lost 1.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Cava is expected to post earnings of $0.17 per share, indicating a change of +6.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +9.3% over the last 30 days.
The consensus earnings estimate of $0.54 for the current fiscal year indicates no change from the prior year. This estimate has changed +5.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.71 indicates a change of +30% from what Cava is expected to report a year ago. Over the past month, the estimate has changed +3.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Cava, the consensus sales estimate for the current quarter of $354.62 million indicates a year-over-year change of +26.4%. For the current and next fiscal years, $1.49 billion and $1.78 billion estimates indicate +26.3% and +19.6% changes, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $438.27 million in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.2 for the same period compares with $0.22 a year ago.
Compared to the Zacks Consensus Estimate of $419.46 million, the reported revenues represent a surprise of +4.49%. The EPS surprise was +17.65%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
CAVA Group shares are advancing steadily. Why is CAVA stock advancing? What Is Driving CAVA’s Stock Growth?The latest bid follows a strong first-quarter report and higher full-year same-store sales outlook, with management lifting that target to 7.8% from 6.1% while noting it isn't currently seeing a macro impact. Q1 revenue came in at $438.27 million versus $411.25 million expected, and adjusted EPS was 20 cents versus 17 cents expected.
CAVA's first-quarter operating leverage also stood out with adjusted EBITDA of $61.7 million versus $56.8 million expected, alongside total revenue growth of 32.2% year-over-year.
With the full-year framework, the company guided fiscal 2026 same-restaurant sales growth to 4.5% to 6.5% (up from 3% to 5%) and raised adjusted EBITDA to $181 million to $191 million (from $176 million to $184 million). CAVA also reiterated unit growth plans, targeting 75 to 77 new restaurant openings this year after opening 20 in the quarter to reach 459 locations.
Analysts also moved quickly to re-rate the setup, with Stifel lifting its target to $105 from $90 and Baird raising to $98 from $88, while Morgan Stanley nudged to $86 from $85 and Barclays moved to $74 from $70.
CAVA Stock: Key Levels To WatchFrom a trend perspective, CAVA is in a "reset" zone: it's trading 3.5% below its 20-day SMA ($82.03) and 6.9% below its 50-day SMA ($85.01), which can act as overhead supply if rallies fade quickly. At the same time, it's still 15.1% above its 200-day SMA ($68.78) and 1.3% above its 100-day SMA ($78.13), so the longer-term uptrend structure hasn't broken.
Momentum looks like it's trying to improve: MACD is above its signal line and the histogram is positive, which typically suggests downside pressure is easing versus the prior downswing. In plain terms, that signal-line crossover often shows buyers are gaining traction, even if price still needs to reclaim key moving averages to confirm a cleaner trend turn.
The March golden cross (50-day SMA above the 200-day SMA) remains a longer-term positive backdrop, but the shorter-term crossover is less friendly with the 20-day SMA below the 50-day SMA. That mix fits the recent "spring volatility" narrative—swing high in April, swing low in May—and suggests traders may keep treating rallies as tests until the stock can hold above the 50-day area.
Key Resistance: $90.50 — a nearby level where rebounds can stall, sitting above current price and near the zone traders often watch after prior spring pivots Key Support: $72.50 — a nearby level where buyers previously stepped in, aligning with a recent downside pivot zone and not far above the longer-term trend area What Is CAVA Group’s Business Model?Cava Group Inc owns and operates a chain of restaurants built around a Mediterranean-inspired fast-casual concept, and it also sells dips, spreads, and dressings that are centrally produced and distributed into grocery channels. Operationally, it reports two segments: CAVA (the restaurants) and CAVA Foods (the packaged and production side), with most revenue coming from the restaurant business.
That mix matters for Friday's move because the market is rewarding evidence of real demand (guest traffic growth) alongside a clear expansion plan. With 459 locations after opening 20 new restaurants in the quarter, and a plan to open 75 to 77 this year, execution on unit growth and same-store sales is the core driver investors are underwriting.
CAVA Group’s Benzinga Edge Scorecard BreakdownBelow is the Benzinga Edge scorecard for CAVA Group, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Neutral (Score: 64.91) — The stock's recent tape is improving, but it's not in a clear momentum-leader posture versus the broader market. Value: Weak (Score: 11.32) — The market is pricing in a lot of growth, leaving less room for error if execution or demand cools. The Verdict: CAVA Group’s Benzinga Edge signal reveals a momentum-leaning setup paired with a clearly premium valuation profile. For longer-term bulls, the trade-off is straightforward: the chart can work if growth stays on track, but the low Value score implies pullbacks can get sharp when expectations wobble.
CAVA Stock Price Movement On FridayCAVA Stock Price Activity: Cava Group shares were up 0.14% at $78.32 at the time of publication on Friday, according to Benzinga Pro data.
Image: Courtesy of CAVA
Market News and Data brought to you by Benzinga APIs
Key Takeaways CAVA posted 9.7% same-restaurant sales growth, driven by a 6.8% increase in guest traffic.CAVA grew revenues 32.2% to $434.4M and adjusted EBITDA 37.6% in first-quarter 2026.Chipotle and Sweetgreen face mixed demand trends as CAVA gains traction without heavy discounting. CAVA Group, Inc. (CAVA - Free Report) is proving that restaurant growth does not have to depend on heavy discounting. At a time when many restaurant operators are battling softer consumer spending and increasing promotional activity, CAVA continues to attract more customers through menu innovation, value and brand strength.
The company's first-quarter 2026 results highlighted this advantage. Same-restaurant sales increased 9.7%, supported by a robust 6.8% rise in guest traffic. Revenues surged 32.2% year over year to $434.4 million, while adjusted EBITDA climbed 37.6%. These results suggest that customer demand remains healthy even as the broader restaurant industry faces a more cautious spending environment.
Management attributed the performance to CAVA's differentiated Mediterranean offering, strong hospitality and disciplined pricing strategy. Unlike many peers that have turned to discounts to drive visits, CAVA has largely maintained its pricing structure. The company implemented only a modest price increase earlier this year while keeping base bowl and pita prices unchanged, reinforcing its value proposition for guests.
Innovation is also helping sustain momentum. The return of roasted white sweet potatoes generated strong customer engagement, while the recent launch of Pomegranate-Glazed Salmon expands the menu with a premium yet health-focused option. Meanwhile, loyalty initiatives and digital engagement programs are encouraging repeat visits and strengthening customer relationships.
Perhaps most notably, management stated that traffic strength has been consistent across regions, income levels and restaurant formats. That broad-based demand, combined with continued unit expansion and rising brand awareness, indicates that CAVA is gaining market share rather than simply benefiting from temporary factors. If these trends persist, CAVA may continue to distinguish itself as one of the restaurant industry's strongest growth stories.
How Do CAVA's Peers Compare on Traffic and Consumer Demand?While CAVA is posting strong traffic-led growth, competitors are facing a more mixed operating environment. Chipotle Mexican Grill (CMG - Free Report) remains one of the closest comparisons due to its customizable menu format and focus on fresh ingredients. However, Chipotle has recently encountered softer transaction trends as consumers become more selective with spending. The company continues to rely on menu innovation, loyalty programs and operational efficiency to drive visits, but its traffic growth has not matched CAVA's recent momentum.
Another relevant peer is Sweetgreen, Inc. (SG - Free Report) , which targets health-conscious consumers with a premium fast-casual offering. Sweetgreen has invested heavily in menu innovation, digital engagement and technology-driven operations. While these initiatives have supported brand awareness, Sweetgreen continues to navigate profitability challenges and uneven consumer demand in some markets.
Compared with both peers, CAVA's combination of strong traffic growth, moderate pricing, expanding brand awareness and broad customer appeal across income groups appears to be giving it a competitive edge. The company's ability to grow guest counts without aggressive discounting suggests that the Mediterranean-focused concept is resonating strongly with consumers and helping it capture market share in the fast-casual dining space.
CAVA’s Price Performance, Valuation & EstimatesShares of CAVA have gained 37.1% in the past six months against the industry’s decline of 2.6%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales ratio of 5.4X, above the industry’s average of 3.23X.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 and 2027 earnings per share implies a year-over-year increase of 1.9% and 30.2%, respectively.
Image Source: Zacks Investment Research
CAVA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restaurant stock Cava Group Inc (NYSE:CAVA) was last seen down 1.8% at $73.33, on track for its fourth-straight daily loss. Shares have struggled to regain momentum since their April peak, logging losses in four of the last five weeks. Despite the recent pullback, CAVA remains up 24.2% in 2026, and a historically bullish signal suggests the stock could be setting up for a rebound by early July.
According to Schaeffer's Senior Quantitative Analyst Rocky White, CAVA is trading within 0.75 times the 126-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared just three times during the last decade. One month later, the stock was higher every time, averaging an impressive 24% gain. A comparable rally from current levels would place CAVA near $91.00.
An unwinding of pessimism could provide further tailwinds. CAVA's Schaeffer's put/call open interest ratio (SOIR) of 1.52 sits higher than 99% of readings from the past 12 months, indicating short-term options traders are unusually put-heavy. Short interest is elevated as well. The 13.44 million shares sold short account for 12.24% of CAVA's available float, representing more than four days' worth of pent-up buying power at the stock's average daily trading pace.
Options traders are pricing in relatively low volatility, per CAVA's Schaeffer's Volatility Index (SVI) of 55%, which ranks in the 18th percentile of its annual range. The stock has tended to exceed these expectations over the past year, per its Schaeffer's Volatility Scorecard (SVS) of 90 out of 100.
WASHINGTON--(BUSINESS WIRE)--CAVA, (NYSE: CAVA) the category-defining Mediterranean fast-casual restaurant brand, today released its 2025 Impact Update, detailing the company's continued commitment to people development, community support, culinary innovation, and sustainable growth. The report reflects a milestone year for the company, surpassing $1 billion in revenue for the first time in 2025 while opening 72 net new restaurants across the country. Alongside this expansion, CAVA donated more.
Key Takeaways CAVA posted 9.7% same-restaurant sales growth in Q1 FY26, powered by 6.8% guest traffic gains.Digital revenue mix hit 39.9% as pickup, delivery and a separate make line support throughput and access.CAVA opened 20 net new restaurants to 459; FY26 openings raised to 75-77. CAVA Group (CAVA - Free Report) is leaning into a straightforward growth playbook: drive more visits, broaden access through digital, and keep opening restaurants at a steady pace. First-quarter fiscal 2026 results showed that the approach is working, with demand led by traffic and supported by measured pricing.
CAVA also raised its full-year fiscal 2026 outlook across key metrics, pointing to confidence in underlying demand and unit economics even as management builds in moderation later in the year.
CAVA Leads With Traffic, Not PriceIn first-quarter fiscal 2026, same-restaurant sales increased 9.7%, driven primarily by 6.8% guest traffic growth. The remaining 2.9% came from menu price and product mix, underscoring that visits, not pricing, did the heavy lifting.
Management characterized its pricing posture as measured. The company cited an approximately 1.4% price increase in January while keeping base bowl and pita pricing flat. That positioning can protect frequency by keeping core entry points stable, while allowing check growth to come through mix and innovation over time.
CAVA Group’s Menu Innovation Keeps Visits RisingMenu news remains a central lever for sustaining engagement. During the quarter, CAVA brought back roasted white sweet potato as a seasonal item and highlighted strong feedback alongside higher visit frequency, including from guests new to the brand.
CAVA also launched its first seafood offering, Pomegranate-Glazed Salmon, across all restaurants nationwide. The company positioned the item as a natural extension of its Mediterranean menu, expanding choice without drifting from the concept.
The broader message is that innovation is being used to lift traffic and support check growth without relying on broad discounting. That can be particularly valuable in a competitive environment where peers may lean into promotions. Chipotle Mexican Grill, Inc. (CMG - Free Report) and Sweetgreen, Inc. (SG - Free Report) have also used menu updates and convenience-focused ordering to keep customers engaged, making consistent innovation a key competitive battleground in fast casual.
CAVA’s Digital Mix Deepens Access and LoyaltyDigital continues to be a meaningful share of the business. Digital revenue mix was 39.9% in first-quarter 2026, reinforcing that a large portion of demand already comes through digital channels.
Management also pointed to digital-led engagement initiatives aimed at deepening relationships with guests as the restaurant base grows. Over time, a scaled digital channel can support convenience, throughput, and more consistent access across dayparts and occasions.
That matters because digital ordering and third-party delivery expand how guests interact with the brand. CAVA has also designed restaurants with multiple access points, including digital pick-up, and includes a separate digital make line intended to maximize throughput. As digital engagement rises, the model is set up to serve those orders without forcing trade-offs in in-restaurant execution.
CAVA Group Builds Scale With New Restaurant MomentumUnit growth is a core engine of the story. CAVA opened 20 net new restaurants in first-quarter fiscal 2026 and ended the quarter with 459 locations, up 20.2% year over year.
Management raised fiscal 2026 net new opening guidance to 75-77, keeping the development plan moving forward while the footprint expands into newer markets. A sustained opening cadence supports multi-year revenue growth even if same-restaurant sales moderate as comparisons tighten.
The company also noted that new restaurant productivity in the first quarter trended above 100%, with openings exceeding expectations on both top-line and margin performance. Early strength like that can reinforce reinvestment as the chain scales across existing and new markets.
CAVA’s Unit Economics Fund the FlywheelCAVA’s store-level profitability provides the capacity to keep investing. In first-quarter fiscal 2026, the company generated $108.9 million of restaurant-level profit on $434.4 million of CAVA revenues.
Profitability held steady even as higher costs tied to a greater mix of third-party delivery and incremental wage investments were absorbed, with leverage from higher sales helping offset pressures. Average unit volume increased to $3.0 million versus $2.9 million in the prior-year quarter, supporting continued unit development as the base expands.
Looking ahead, management’s fiscal 2026 restaurant-level profit margin outlook of 23.7%-24.3% reflects ongoing investment in the operating model while sustaining store-level profitability as the footprint scales.
CAVA Group’s 2026 Outlook Signals Demand ConfidenceManagement raised full-year fiscal 2026 guidance to 4.5%-6.5% same-restaurant sales growth and $181-$191 million of Adjusted EBITDA. It also reiterated that second-quarter trends are tracking in line with the first quarter and above the revised full-year range, while still embedding moderation later in the year.
That setup frames a constructive near-term trajectory driven by traffic-led demand, disciplined unit growth, and sustained digital engagement. For investors who follow Zacks’ signals, CAVA currently carries a Zacks Rank #3 (Hold).
CAVA’s Key Risks to Watch From HereSeveral swing factors could pressure margins or damp demand. Management expects an estimated 100 basis-point margin-rate drag from the national salmon rollout beginning in the second quarter, creating a mix headwind even as the offering broadens the menu.
The company also flagged elevated energy costs, including a 20-40 basis-point buffer, which can weigh on restaurant-level leverage. Finally, macroeconomic and geopolitical uncertainty remains an overhang, especially in a highly competitive restaurant landscape where discounting could intensify.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways CAVA trades at 5.15x forward sales vs 3.2x sub-industry; below its 2-year median 7.5x.CAVA Q1 EPS $0.20 on $0.44B revenue; FY26 comps raised to 4.5%-6.5% and EBITDA to $181-$191M.CAVA flags ~100 bp margin drag from salmon rollout, plus 20-40 bp energy buffer; no 2026 price hikes planned. CAVA Group (CAVA - Free Report) is putting up strong, traffic-led results while expanding its footprint at a brisk pace. That combination often earns premium valuation in restaurants, and CAVA is no exception.
The setup now comes down to whether the operating momentum and raised fiscal 2026 outlook can offset the margin headwinds management is already flagging. At roughly 5x sales, execution matters.
CAVA Trades Rich Versus the Sub-IndustryCAVA is currently trading at 5.15x forward 12-month sales, versus 3.2x for the Zacks sub-industry. The premium signals that investors are paying up for a growth profile that blends traffic momentum with unit expansion and solid store-level economics.
It also helps to frame where today’s multiple sits within CAVA’s own history. Over the past two years, the stock has traded as high as 15.11x sales and as low as 3.63x, with a two-year median of 7.5x. Today’s level is below that median, but still above the broader peer set, which leaves valuation sensitive to any change in demand or margin expectations.
CAVA Group’s Price Target and What It ImpliesCAVA’s shares carry a $75 price target that reflects 5.41x forward 12-month sales. The math behind that target is effectively a bet that CAVA can keep building scale without losing the attributes that are driving demand and profitability today.
What has to go right is fairly clear based on recent performance. Demand needs to remain healthy, new restaurants need to continue to open on plan, and restaurant-level profitability needs to stay resilient even as the company invests in the operating model. Management’s decision to raise fiscal 2026 guidance across same-restaurant sales, net new openings and Adjusted EBITDA reinforces that confidence, but the margin bridge still has real moving parts.
CAVA’s Hold Rating and Style Score SnapshotCAVA currently has a Zacks Rank #3 (Hold). That rating aligns with a view that near-term performance may track more in line with the broader market rather than signaling a clear short-horizon advantage.
The Style Scores show why the stock can screen well for some factors but not others. CAVA has a VGM Score of B, with Value at F, Growth at A and Momentum at A. In plain terms, the factor posture leans toward growth and momentum rather than valuation support, which fits a stock trading at a premium to the sub-industry.
CAVA Group’s Beat-and-Raise Quarter in ContextCAVA delivered first-quarter fiscal 2026 earnings of $0.20 per share, down 9.1% year over year but ahead of the Zacks Consensus Estimate of $0.17. Total revenues rose 32.1% to $0.44 billion, topping the consensus mark of $0.42 billion.
The demand engine behind the beat is also important. Same-restaurant sales increased 9.7% in the quarter, including guest traffic growth of 6.8%. Those fundamentals supported management’s decision to raise fiscal 2026 guidance for same-restaurant sales growth to 4.5%-6.5% and Adjusted EBITDA to $181-$191 million.
CAVA’s Margin Bridge: What Helped, What HurtCAVA’s restaurant-level profit margin was 25.1% in the first quarter, flat year over year, even as the company absorbed incremental wage investments and a higher mix of third-party delivery. Management noted that leverage from higher sales helped offset those pressures, keeping store-level profitability stable.
On the cost lines, food, beverage and packaging were 29.1% of CAVA revenues, down 20 basis points versus the prior-year quarter, largely due to favorable mix. Labor and related costs were 25.7% of revenues, approximately flat year over year, as sales leverage was offset by a 2% wage investment, including expansion of the Assistant General Manager role.
The trade-off is that a higher mix of third-party delivery can lift operating expense rates and reduce incremental margin flow-through, even if it supports demand. That balance will matter more as CAVA’s digital channels continue to scale.
CAVA Group’s 2026 Headwinds That Can Reprice the StockManagement expects incremental cost pressures, including a 20-40 basis-point buffer for elevated energy costs. It also expects an approximate 100 basis-point margin-rate drag tied to the national salmon rollout beginning in the second quarter of fiscal 2026.
Just as important, management reiterated it does not plan to take additional price increases in 2026 beyond the January menu adjustment. That value stance can support traffic, but it raises the bar for absorbing inflation through mix, labor productivity and operating discipline.
CAVA’s Balance Sheet and Cash Flow FlexibilityCAVA generated net cash provided by operating activities of $64.1 million in the first quarter. Capital spending remained elevated, with purchases of property and equipment of $48.6 million, resulting in free cash flow of $15.5 million.
Liquidity also remains ample, with $295.8 million of cash and cash equivalents and $107.2 million of investments, plus access to a $150 million revolving credit facility. That flexibility supports near-term expansion, which is central to the growth thesis.
In the broader restaurant peer set, Chipotle Mexican Grill, Inc. (CMG - Free Report) carries a Zacks Rank #3 (Hold), while Shake Shack, Inc. (SHAK - Free Report) has a Zacks Rank #4 (Sell). For CAVA, sustaining premium valuation will likely require continued demand strength alongside disciplined cost absorption as those fiscal 2026 headwinds move through the income statement.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways CAVA launched CavaCore in 2026 and CAVA Current to unify data and speed store-level actions.CAVA's digital mix hit 39.9% in Q1; Digital Kitchens add delivery and catering capacity in select markets.CAVA Q1 FY26 comps rose 9.7% on 6.8% traffic; delivery mix and salmon rollout are set to weigh on margins. CAVA Group (CAVA - Free Report) has been leaning on strong traffic momentum, disciplined pricing and broad consumer appeal across income cohorts. Digital ordering and third-party delivery are supporting guest frequency, while menu innovation is keeping engagement high. New restaurants are also performing strongly across markets, reinforcing the long-term unit-growth opportunity.
For investors, the setup now hinges on whether CAVA can keep execution tight as it scales. The company carries a Zacks Rank #3 (Hold) at present, and its operating technology initiatives look increasingly tied to protecting consistency while the footprint expands.
CAVA’s CavaCore Sets Up Data at ScaleCAVA launched CavaCore earlier in 2026 as a modern data platform intended to create a unified, scalable foundation for how it manages and uses data. The stated objective is to enable faster execution across the business as it grows.
Management also positioned CavaCore as an infrastructure that can help the company leverage emerging artificial intelligence capabilities over time. The key point is structural. A single, scalable data layer can reduce friction when CAVA wants to standardize processes and accelerate decisions across hundreds of restaurants.
CAVA Group’s CAVA Current Aims for Faster Store ActionsCAVA Current is live and processing orders, with the platform designed to improve visibility. That visibility is meant to support faster, more localized actions across restaurants as the chain scales.
As unit count climbs across existing and new markets, the operating burden shifts from opening restaurants to running them consistently. Systems that translate demand signals into clearer store-level actions can help sustain service speed and decision-making discipline as the footprint becomes more complex.
CAVA’s Digital Kitchens Expand Off-Premise CapacityCAVA restaurants are designed to support multiple access points, including walk-the-line ordering and digital pick-up, and each location includes a separate digital make line to maximize throughput. In select markets, the company also operates Digital Kitchens to support third-party marketplace and native delivery, digital pick-up and centralized catering production.
Digital is already a meaningful part of the business. Digital revenue mix was 39.9% in the first quarter of fiscal 2026, showing that a large share of demand is transacting through digital channels. As off-premise expands, Digital Kitchens can act as a pressure valve, adding capacity for delivery and catering without forcing every restaurant to absorb the same operational complexity.
CAVA Group’s Supply Chain Is Built for 750 StoresCAVA has invested in vertically integrated manufacturing and a directly sourced supply chain with more than 50 grower, rancher and producer partners. This structure supports the restaurant system and the consumer packaged goods business, which sits within CAVA Foods.
The production footprint includes a 30,000-square-foot facility in Laurel, MD, a 55,000-square-foot facility in Verona, VA, and a 4,000-square-foot distribution facility in Edison, NJ, used primarily for consumer packaged goods distribution in the Northeast. The company has also signed a lease to expand the Laurel facility by an additional 20,000 square feet.
Management expects its production facilities to support at least 750 restaurants plus the consumer packaged goods business, with additional capacity development planned over time. That capacity signal matters because it indicates the supply chain is being built to stay ahead of unit growth rather than reacting after constraints appear.
CAVA’s Growth Loop: Tech, Throughput and New UnitsUnit expansion remains a core growth engine. CAVA opened 20 net new restaurants in the first quarter of fiscal 2026 and ended the quarter with 459 restaurants, up 20.2% year over year. Management raised full-year fiscal 2026 net new opening guidance to 75-77, keeping development moving forward as the footprint pushes into newer markets.
The operating model is also producing a profit base that can fund reinvestment. In the first quarter, CAVA generated $108.9 million of restaurant-level profit on $434.4 million of revenues, while average unit volume increased to $3.0 million from $2.9 million in the prior-year quarter. Over time, management’s technology investments are intended to help maintain consistent execution as those volumes and unit counts climb.
CAVA Group’s Trade-Offs as Digital and Delivery RiseScaling digital and delivery is not free. In the first quarter of fiscal 2026, other operating expenses rose to 13.3% of revenues, up 80 basis points year over year, primarily due to a higher mix of third-party delivery. Even if digital channels are managed for dollar contribution, a higher delivery mix can lift operating expense rates and reduce incremental margin flow-through as the store base expands.
CAVA is also absorbing incremental cost headwinds. Management expects a 20-40 basis point buffer for elevated energy costs and an expected 100 basis point margin-rate drag from the national salmon rollout beginning in the fiscal second quarter. With no additional price increases planned in 2026 beyond the January adjustment, the cost discipline around channel mix becomes more important.
CAVA: What to Track Next Quarter?First, watch whether comps remain traffic-led. In the first quarter of fiscal 2026, same-restaurant sales increased 9.7%, with 6.8% driven by guest traffic and 2.9% tied to menu price and product mix. Sustained traffic momentum would reinforce the durability of demand as comparisons tighten.
Second, track delivery mix and the expense line tied to it. The company has already flagged how third-party delivery can pressure operating expense rates and reduce incremental margin flow-through, so investors should monitor whether that dynamic accelerates as digital grows.
Third, follow how the salmon rollout flows through margins as it ramps. Management highlighted a margin-rate drag beginning in the second quarter, making mix and cost absorption key swing factors. For context, peers such as Chipotle Mexican Grill, Inc. (CMG - Free Report) and Sweetgreen, Inc. (SG - Free Report) also carry a Zacks Rank #3 each, underscoring how execution and cost control can separate operators even in a competitive restaurant environment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
