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

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

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 Trading Up 10.6%

BigBear.ai stock opened at $2.35 on Wednesday. The stock has a 50-day moving average price of $2.71 and a two-hundred day moving average price of $3.68. BigBear.ai has a 12 month low of $2.07 and a 12 month high of $7.40. The company has a market capitalization of $1.12 billion, a PE ratio of -11.17 and a beta of 3.37.

Trending Headlines about BigBear.ai

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

• Positive Sentiment: BigBear.ai reported third-quarter 2026 revenue above analyst expectations, with revenue up 31.5% year over year. The company also raised its fiscal 2026 revenue guidance, suggesting stronger demand for its AI products and security and defense contracts. BigBear.ai Announces Third Quarter 2026 Results and Raises FY 2026 Revenue Guidance
• Positive Sentiment: The company reported a quarterly loss of $0.06 per share, in line with the consensus estimate. Although still unprofitable, the result was better than the $0.07-per-share loss reported in the comparable period cited by Zacks, reducing the risk of an earnings miss. BigBear.ai Reports Q3 Loss, Tops Revenue Estimates
• Neutral Sentiment: Options activity was unusually heavy, with investors purchasing 39,656 call options—59% above average daily call volume. This may indicate speculative bullish interest, but options positioning alone does not confirm a sustained share-price move.
• Negative Sentiment: BigBear.ai remains loss-making, with a reported negative net margin of 65.20% and negative return on equity. Before the release, analysts also cited rising costs and potential government-funding risks, which could limit the benefit of revenue growth. What Investors Must Know Ahead of BigBear.ai’s Q3 Earnings

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on BBAI shares. Wall Street Zen cut shares of BigBear.ai from a “hold” rating to a “sell” rating in a research report on Saturday, August 1st. Cantor Fitzgerald cut their target price on shares of BigBear.ai from $5.00 to $4.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of BigBear.ai in a research report on Thursday, October 15th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $5.00.

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.