BigBear.ai (NYSE:BBAI) Releases Earnings Results, Misses Estimates By $0.13 EPS

BigBear.ai (NYSE:BBAI) released its quarterly earnings results on Tuesday. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.13), Briefing.com reports. The company had revenue of $43.58 million during the quarter, compared to analyst estimates of $29.93 million. The firm’s revenue for the quarter was up 31.5% compared to the same quarter last year. During the same period last year, the business earned ($0.03) EPS.

Here are the key takeaways from BigBear.ai’s conference call:

• Revenue grew 31% year over year to $43.6 million, prompting BigBear.ai to raise its 2026 revenue guidance to $150 million–$165 million, with the midpoint implying 23% annual growth.
• The company announced more than 25 contracts worth over $225 million in total contract value during the quarter, including major Homeland Security recompetes and new generative AI customers across federal agencies; backlog increased 22% sequentially to $330 million.
• Gross margin expanded 878 basis points year over year to 31.2%, while the company entered the fourth quarter with nearly $400 million in cash and investments and expects to be debt-free after repaying approximately $17 million of convertible debt in December.
• BigBear.ai reported a $91.9 million net loss, or $0.19 per share, primarily due to a $76.7 million non-cash goodwill impairment charge; adjusted EBITDA remained negative at $9.1 million.
• Management emphasized plans to pursue acquisitions and expects defense modernization, secure travel, trade-flow changes, and rising security threats to support growth in 2027, though these statements remain forward-looking and subject to execution and market risks.

BigBear.ai Stock Performance

BigBear.ai stock opened at $2.35 on Wednesday. The firm has a market cap of $1.12 billion, a PE ratio of -11.17 and a beta of 3.37. The firm’s 50 day moving average price is $2.71 and its two-hundred day moving average price is $3.68. BigBear.ai has a twelve month low of $2.07 and a twelve month high of $7.40.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Wall Street Zen lowered shares of BigBear.ai from a “hold” rating to a “sell” rating in a report on Saturday, August 1st. Cantor Fitzgerald decreased their price objective on shares of BigBear.ai from $4.00 to $3.00 and set a “neutral” rating for the company in a research note on Wednesday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of BigBear.ai in a report on Thursday, October 15th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $4.50.

Trending Headlines about BigBear.ai

Here are the key news stories impacting BigBear.ai this week:

• Positive Sentiment: BigBear.ai reported third-quarter revenue of approximately $43.6 million, up about 31% year over year and well above the roughly $29.9 million analyst estimate. Growth was supported by defense contracts and demand for the company’s AI capabilities. BigBear.ai Q3 Revenue Report
• Positive Sentiment: Management raised its 2026 revenue outlook to $150 million-$165 million, substantially above the prior analyst estimate of about $112.9 million. Investors also noted stronger margins, a growing backlog and improving growth prospects. BigBear.ai Raises 2026 Revenue Guidance
• Positive Sentiment: Heavy call-option activity, with traders purchasing 39,656 calls—59% above typical daily volume—signals speculative bullish interest, although it does not guarantee sustained buying.
• Neutral Sentiment: Chief Executive Officer Mandy Long warned that artificial intelligence is accelerating cyber threats and urged greater private-sector cooperation with governments. The comments highlight potential demand for BigBear.ai’s security and defense offerings but do not represent a new contract. BigBear.ai CEO Cybersecurity Warning
• Negative Sentiment: The company reported a quarterly loss of $0.19 per share, wider than the approximately $0.06 analyst estimate, despite the revenue beat. The loss and impairment-related concerns keep profitability as a key risk. BigBear.ai Reports Q3 Loss
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $4 to $3 and maintained a neutral rating, reflecting limited conviction that the strong growth outlook will quickly translate into profits. Cantor Fitzgerald Rating

BigBear.ai Company Profile

BigBear.ai Holdings, Inc (NYSE: BBAI) is an artificial intelligence company that develops decision-intelligence solutions for government and commercial organizations. Its technologies are designed to help customers analyze complex data, identify risks and opportunities, and support planning and operational decision-making.

The company provides artificial intelligence and machine-learning capabilities across areas such as supply-chain management, cyber operations, logistics, autonomous systems, predictive analytics, and computer vision.