BBAI

Snowflake drops 4% ahead of earnings and Datadog falls 6% with no catalyst, pointing to profit-taking on crowded high-beta software positions rather than company-specific news. IGV slides 3% while QQQ gains 0.2%, confirming traders are rotating out of software specifically rather than selling technology as a whole. Datadog's 65% and Snowflake's 46% YTD gains gave traders thick cushions to trim, making positioning the clearest driver of today's selloff. Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now. The report is free. Enter your email and see if any of your stocks made the cut. Software is the day's clearest sore spot at midday, with a handful of the year's biggest AI-era winners giving back ground even as the broader large-cap technology tape barely moves. That split is the actual story of the session, and it explains why several unrelated names are sinking together while the index stays quiet. The iShares Expanded Tech-Software Sector ETF (NASDAQ:IGV) is down 3% to $103.06, tracking software as a distinct slice of the market. Meanwhile, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.2% to $709.20, which leaves the NASDAQ 100 slightly higher on the session. That contrast tells the session's clearest story, since money is leaving software as a group rather than technology as a whole. Snowflake (NYSE:SNOW) stock is down 4% to $306.22 ahead of its fiscal Q2 2027 report scheduled for after today's close. Meanwhile, Datadog (NASDAQ:DDOG) shares are falling harder, down 6% to $211.29, with no earnings scheduled and no fresh company headline attached to the move. Cloudflare (NYSE:NET) stock is also down 4% to $273.09, rounding out a trio where the deepest cuts are landing on the highest-flying names in the space. Free Report, Just Released Did Any of Your Stocks Make the Top 10 List? It is an uncomfortable question, and there is now an answer to it. 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. Open your account and look at what you own. Some of it you bought for a reason you could still defend today. Some of it you bought years ago for a reason you can no longer remember. The report is free. Put the ten next to what you own and find out which is which. Enter Your Email and See the Ten → Free from 24/7 Wall St. It lands in your inbox. Snowflake is confirmed to report fiscal Q2 2027 results after today's close, and that scheduled event is real and looming. Yet the pattern across the three tickers does not fit a straightforward earnings-nerves read, because Datadog and Cloudflare are not on the calendar today and are still moving lower in step with Snowflake. If nerves alone were the story, the two non-reporters would be somewhere near the flat line rather than leading the group down. No fresh company-specific headline explains today's declines in Datadog or Cloudflare, and the broader software fund is weakening at the same time. The cleaner explanation is a rotation out of high-multiple software rather than a narrative tied to any one ticker, and that framing lines up with what the ETF split is showing on the tape. Snowflake's late-day report is a coincidence of timing more than a driver of what has already happened this morning. The software group had rebuilt momentum coming into September after a strong August recovery, and today's action looks more like traders locking in profits than a change in the AI narrative that has powered the group all year. When the biggest decliners are also the biggest recent winners in a sector, positioning tends to explain more of the day than fundamentals do. That is the read most consistent with today's ticker-by-ticker picture across Snowflake, Datadog, and Cloudflare. Each of the three featured names is dropping further than the software fund itself, which is the fingerprint of the most expensive names in a sector being sold first. Snowflake stock was up 46% year to date (YTD) through Tuesday's close. Datadog stock was up 65% and Cloudflare stock was up 45% over the same window, giving each of them a thick cushion of prior gains for traders to trim into strength. Datadog's leading decline is the most instructive detail in the group today. With no report scheduled and no announcement circulating, the deepest cut is landing on a name with nothing on its own calendar to blame for the move. Traders trimming their exposure to the year's crowded winners looks like the simpler explanation, and profit taking of this shape typically hits the highest-beta software names before it spreads to steadier corners. Additionally, the QQQ's slightly-higher print today underscores that this is not a technology-wide flush. Large-cap tech is holding up while the software sleeve inside it is being sold down, which is what a targeted rotation looks like. That is rotation, not a sector-wide verdict on the AI trade that has driven names like Snowflake, Datadog, and Cloudflare to their current levels. Snowflake's fiscal Q2 2027 release and its conference call after today's close is the next scheduled event that can reset sentiment across the group. A clean report may steady IGV and pull the peer trade higher with it, and a softer one can extend today's move into the next session for Datadog and Cloudflare as well. Either outcome will be measured against a group already in a fragile spot. Traders can watch for whether IGV holds its recent range into the close, since the sector fund's behavior is doing more to explain today's action than any single company inside it. A finish below where the fund started the week would strengthen the rotation read and put more pressure on the peer group heading into the Snowflake report tonight. Investors weighing their exposure to the highest-multiple software names in IGV may want to lean toward moderate position sizes into tonight's report and keep dry powder for the reaction. The group's leaders have already moved sharply against their holders today, and the market shifted quickly enough to justify tighter risk controls on those positions. Snowflake's report will resolve part of the uncertainty for the software complex, though probably not all of it. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research point to as the 10 best stocks to buy right now, and it's free. Read more here and >;elm:context_link;itc:0;sec:content-canvas" data-yga="{"yLinkElement":"context_link","yModuleName":"content-canvas","yLinkText":"see which stocks made the cut -->"}" class="link ">see which stocks made the cut -->> Contact [email protected] for any questions or corrections.

SOUN has fallen 55% over 12 months despite Q2 revenue beating consensus by 45%, as investors penalize cash burn and dilution risk. Peers CRNC and AI both declined sharply over 12 months but neither matches SOUN's 70% consensus upside or H.C. Wainwright's $20 Street-high target. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) SoundHound AI (NASDAQ:SOUN) currently trades at $7.48, while the average Wall Street price target sits at $12.71, an implied gap of 69.92% between current price and analyst consensus. SoundHound builds independent voice and agentic AI software deployed across automotive, healthcare, restaurants, and financial services. Wall Street is watching because the top line compounds fast while losses narrow, and the pending LivePerson acquisition could reshape the revenue base heading into 2027. One prominent analyst carries the Street-high target of $20, implying roughly 167% upside from here. SoundHound has lost 54.67% over the past year. Shares traded as high as $22.17 in the last 52 weeks before drifting toward single digits. The selloff came despite strong results. Q2 FY2026 revenue of $61.9 million came in 45.02% ahead of the prior year and beat the $52.4 million consensus. Investors punished the story for cash burn and dilution risk: cash slipped from $248.5M to $202.8M over six months, stock-based comp ran at $21.5M in the quarter, and contingent acquisition liabilities of $83.6M loom over the share count. The pain was company-specific. The S&P 500 rose 20.62% over the same 12-month window while SOUN lost more than half its value. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Analysts have refused to blink because the operating story keeps beating models. Of the analysts tracked, six rate SOUN a Buy and two rate it Hold, with no Sell ratings. Full-year 2026 revenue guidance was raised to $230 million to $260 million, and combined 2027 revenue with LivePerson is projected at $350 million to $400 million minimum. H.C. Wainwright's bull case sits at the top of the range. The firm highlights rapid drive-thru monetization at Church's Texas Chicken, Torchy's Tacos, and White Castle, expansion into Vision AI and the Agentic+ platform, and cross-selling voice into the Amelia and LivePerson customer bases. Operational leverage is expected to push SoundHound toward adjusted EBITDA break-even by late 2026 or 2027, backed by a debt-free balance sheet. CEO Keyvan Mohajer told investors that "our pipeline has never been this big, and our win rate has never been this good," citing an eight-figure commitment signed in less than 90 days from demo to contract. With Gartner projecting agentic AI software spending near $1 trillion by 2030, the analyst view is that SoundHound is early in a category it helped define. Recent revisions have leaned reiteration and upgrade, not downgrade. The broader enterprise and voice AI cohort is soft, but SOUN's 12-month drop is the steepest of the closest comparables. Cerence (NASDAQ:CRNC), the closest voice-in-vehicle competitor, trades at $8.61 against a consensus target of $10.75, roughly 25% upside. It has fallen 36.32% over the past year. The rating slate skews Hold at one Buy and four Holds. C3.ai (NYSE:AI) sits at $10.18 with a consensus target of $8.82, meaning analysts collectively see downside from here. Shares are off 45.27% over 12 months, and the rating mix is bearish at one Buy, seven Holds, three Sells, and three Strong Sells following downgrades tied to restructuring under returning CEO Tom Siebel. BigBear.ai (NYSE:BBAI) trades at $3.34 with a consensus target of $4.00, about 20% upside. The stock is down 42.51% on the year, with one Buy and two Holds and no meaningful upgrade momentum. The largest analyst-implied upside across the group belongs to SoundHound at 69.92% on consensus, and 167% on the Street-high case. SOUN trades at $7.48 with an average analyst target of $12.71, implying 69.92% upside. Coverage is concentrated among eight analysts, with six Buy ratings and two Hold, and no Sells. Year to date, SOUN is off 24.97%, while the S&P 500 is up 14.07%. Recent trading has been firmer, with the stock up 11.81% over the past month following the Q2 report. Reddit sentiment around the earnings release ran very bullish at 82, and insider activity is net buying with 17 recent transactions. The bull case strengthens if the LivePerson deal closes cleanly and combined 2027 revenue arrives at the $350 million to $400 million range with gross margin marching back toward the 70% level the CFO explicitly targets. The path to consensus $12.71 runs through EBITDA break-even, continued 40%-plus revenue growth, and OASIS wins that convert eight-figure demos into signed contracts. Scott Buck's $20 target stops looking like a stretch if that happens. The bear case takes hold if cash burn chews through the $202.8 million war chest faster than losses narrow, if $21.5 million quarterly stock comp turns growth into permanent dilution, or if LivePerson integration surfaces execution risk. A high beta of 2.83 means the round trip could hurt. The peer group offers less upside on worse fundamentals, the consensus gap is real, and the operating trajectory is trending the right way. This is a high-volatility bet on execution rather than a safe compounder, and position sizing matters more than conviction here. Looking to grow your money but unsure where to begin? 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Palantir Technologies Inc. (NASDAQ:PLTR) stock jumped 29.5% Tuesday, which was its second-best day ever after the company posted what CEO Alex Karp called an "otherworldly" second quarter. Revenue beat estimates, and growth happened quickly instead of slowing. Palantir raised its full-year guidance again. Revenue rose 93% to $1.94 billion, beating the $1.80 billion analysts expected. Commercial revenue jumped 149% to $764 million. Karp said the surge comes from companies demanding "AI sovereignty." They want to keep their own data private from AI labs like OpenAI and Anthropic, rather than handing those labs the keys to their business. Citi analysts said the results "further weaken the bear case around rising AI competition." This makes you wonder: is Palantir proving AI sovereignty is a real, durable business worth this scale of rally? Growth is accelerating since overall revenue rose 93%, commercial revenue rose 149%, and commercial revenue has climbed 380% since 2024 once you compound the growth. Palantir Technologies Inc. (NASDAQ:PLTR) raised its guidance for the second time this year, from an original forecast under $7.7 billion to $8.15 billion to $8.16 billion now. Remaining U.S. commercial deal value more than doubled to $6.24 billion, which means much of that future revenue is already locked in. Karp said the growth "looks like this is going to go on for at least another 18 months." Net income hit $1.07 billion, and adjusted earnings per share came in at 41 cents, up from just 13 cents a year ago. Even after the 30% surge, shares were still down for the year as of August 3, a sign of how far the AI-trade selloff had pushed the stock before this quarter. France's domestic intelligence agency already dropped Palantir for a French rival. Palantir is also fighting to keep a London police contract it stands to lose. A quarter this extraordinary can still give some ground back the next day. BigBear.ai Holdings, Inc. (NYSE:BBAI) is a much smaller defense-focused AI company that posted its second-quarter results in late July. Revenue rose 13% to $36.7 million, and gross margin jumped sharply to 32.8% from 25%. It was helped by its Ask Sage generative AI platform. The company affirmed full-year guidance of $135 million to $165 million. It also won more than 20 new contracts. CEO Kevin McAleenan said BigBear.ai is "on track for our target of 17% revenue growth." However, adjusted EBITDA actually worsened to a loss of $11.6 million from $8.5 million a year earlier. Cantor Fitzgerald cut its price target to $4 from $5. The analyst flagged "lower EBITDA and the need for a back-half revenue acceleration to meet guidance" as key concerns. Unlike Palantir, BigBear.ai still depends heavily on a small number of federal defense contracts. The firm has also had to restate several years of past financial statements due to accounting errors. Insider Monkey's hedge fund database shows Palantir Technologies Inc. (NASDAQ:PLTR) had 96 hedge fund holders as of Q1 2026, up from 89 the quarter before. BigBear.ai Holdings, Inc. (NYSE:BBAI) had just 22 holders, down from 27. Among enterprise software peers, Oracle had 115 holders, ServiceNow had 108, and Snowflake had 80. Palantir proved that huge companies can still grow at incredible speeds. Wall Street rewarded the firm for this performance. On the other hand, BigBear.ai is trying to do the exact same thing with artificial intelligence and government defense, even though it operates at a much smaller scale. The company is cutting costs and improving its profits, but it must do much more work before investors value it like Palantir. Hedge funds also favor Palantir Technologies Inc. (NASDAQ:PLTR) over BigBear.ai. While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Hedge Funds Are Bullish on DXC Technology (DXC) and Blackstone Inc. (BX)'s Profit Jumped 26% on AI Bets but the Stock Barely Moved. Here's Why. Disclosure: None. This article is originally published at Insider Monkey.

BigBear.ai Holdings, Inc. BBAI used its second-quarter 2026 earnings call to emphasize execution, contract momentum and wider deployment of its AI products. Management also maintained full-year revenue guidance while highlighting backlog growth and margin expansion. The second-half focus is on converting wins into revenues, scaling acquired capabilities and pursuing accretive M&A from a strong cash position. The company remains on track for 2026 revenues of $135 million to $165 million, supported by customer wins and product traction. BBAI’s second-quarter revenues rose 13% year over year to $36.75 million, topping the Zacks Consensus Estimate of $36.4 million. The reported loss of 4 cents per share came narrower than the consensus loss of 5 cents, producing a 20% surprise. BigBear.ai Holdings, Inc. price-consensus-eps-surprise-chart | BigBear.ai Holdings, Inc. Quote Gross margin reached 32.8%, up 781 basis points year over year, as higher-margin GenAI platforms and products represented a larger revenue mix. CEO Kevin McAleenan said BigBear.ai won more than 20 new contracts in the quarter, with values ranging up to $5 million each. He also referenced the $53 million intelligence-customer contract announced in the first quarter. Backlog reached $269.6 million at June 30, up 9% from year-end. CFO Sean Ricker tied the increase to wins across the company’s portfolio. Management’s emphasis remained on specialized AI for complex, secure environments where mission knowledge and deployment capability are important to customers. McAleenan highlighted CargoSeer’s five-year commercial deployment agreement in El Salvador following a 12-month pilot. The project is CargoSeer’s first deployment in Central America and combines cargo X-ray imagery, trade documents and structured data. For Ask Sage, management cited a new win with Naval Air Systems Command and an expanded option for air-gapped and locally connected environments up to the top-secret level. The platform can support multiple AI models and data types without an external network. The CEO also cited ConductorOS exercises in which one soldier controlled multiple drones from different vendors. At the Army’s Jailbreak event, the software connected a sensor and missile system that had not previously communicated. McAleenan said his two main second-half priorities are topline growth and finding accretive M&A targets with technologies that can be deployed rapidly at scale. He said Ask Sage and CargoSeer are fully integrated and performing well. Ricker said BigBear.ai ended the quarter with about $410 million of cash and investments. Management plans to use that capital for new capabilities and acquisitions that can accelerate growth. The CEO said the company will be deliberate with cash while remaining prepared to move aggressively when opportunities fit its strategy. Ricker said adjusted EBITDA was negative $11.6 million, versus negative $8.5 million a year earlier. The decline reflected investment in sales, go-to-market capabilities and research and development, partly offset by higher gross margin. Selling, general and administrative expenses increased $10.4 million to $31.8 million. The company attributed the increase to Ask Sage amortization, legal and proxy costs, and higher sales and marketing spending. The CFO also highlighted the July achievement of CMMC Level 2 certification ahead of schedule, presenting it as part of BigBear.ai’s broader push for execution rigor and customer trust. McAleenan closed by reiterating the company’s focus on national security and trade and travel, supported by applied AI, mission expertise and deployment flexibility. The second-half message centered on delivering revenue targets, scaling recent product wins and pursuing M&A without losing execution discipline. Management also wants to build momentum for stronger top-line growth in 2027. BBAI currently carries a Zacks Rank #4 (Sell), while its Value, Growth, Momentum and VGM Score are each an F. Under the Zacks framework, F is the weakest grade in the A-to-F Style Score hierarchy, while a Zacks Rank of 4 indicates an unfavorable near-term earnings-estimate revision profile. The Style Scores complement the Zacks Rank, with the strongest combinations generally involving a Zacks Rank #1 (Strong Buy) or 2 (Buy) and A or B Style Scores. BBAI’s current combination is therefore weak within that framework. The Zacks Rank can change as analysts revise earnings estimates following the newly reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BigBear.ai Holdings, Inc. (BBAI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in BigBear.ai Holdings, Inc.? Here are five stocks we like better. Revenue rose 13% year over year to $36.7 million in Q2 2026, while gross margin improved to 32.8% from 25.0%. Management reaffirmed full-year revenue guidance of $135 million to $165 million. BigBear.ai won more than 20 contracts during the quarter and ended it with $270 million in backlog, up about 9% from year-end. The company also reported $410 million in cash and investments to support product development and potential acquisitions. Management highlighted growth initiatives including CargoSeer’s five-year deployment in El Salvador, expanded secure generative AI offerings through Ask Sage, and ConductorOS for coordinating autonomous systems. BigBear.ai also achieved Cybersecurity Maturity Model Certification Level 2 ahead of schedule. The Market May Be Missing What’s Changing at BigBear AI BigBear.ai (NYSE:BBAI) reported second-quarter 2026 revenue growth and a substantial improvement in gross margin, while management said it is pursuing additional contract wins, product deployments and acquisitions to expand its position in defense, security, trade and travel technology markets. Revenue for the quarter totaled $36.7 million, up 13% from the comparable period in 2025. Gross margin rose to 32.8%, an increase of 781 basis points year over year, which Chief Financial Officer Sean Ricker attributed to a higher mix of revenue from the company’s generative AI platforms and products. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 5 April Buys With Double-Digit Year-End Targets Chief Executive Officer Kevin McAleenan said the company remains on track to meet its full-year revenue guidance of $135 million to $165 million. He said BigBear.ai won more than 20 new contracts during the second quarter, with individual values of up to $5 million, spanning existing and new customers in the United States and international markets. BigBear.ai ended the quarter with $270 million in backlog, up approximately $22 million from the start of the year. McAleenan said backlog had increased 9% since year-end and described the company’s pipeline as healthy. → Microsoft Just Flipped the AI Spending Narrative Overnight Members of Congress Bought These 5 Stocks—Should You? Ricker said the company finished the quarter with $410 million in total cash and investments. Management plans to use those resources to invest in capabilities and pursue what McAleenan described as accretive merger-and-acquisition opportunities involving technologies that can be deployed rapidly at scale. McAleenan said the company has fully integrated Ask Sage and CargoSeer, the two acquisitions completed during the prior six months. He said the businesses are now participating in the company’s day-to-day operations and performing well. → Carrier Earnings Could Send the Stock to a New All-Time High The company reported a net loss of $25.7 million in the second quarter, compared with a net loss of $228.6 million a year earlier. Ricker said the year-over-year reduction primarily reflected non-cash fair-value changes in derivatives and a non-cash goodwill impairment charge recorded in the second quarter of 2025 that did not recur this year. Adjusted EBITDA was negative $11.6 million, compared with negative $8.5 million in the prior-year period. Ricker said the change reflected increased spending on sales, go-to-market capabilities and research and development, partly offset by the higher gross margin. McAleenan highlighted a five-year commercial deployment agreement for CargoSeer in El Salvador, signed with a regional customs specialist after a 12-month pilot program. He described it as CargoSeer’s first deployment in Central America. The CargoSeer platform combines cargo X-ray imagery, import and export documents, and structured trade data in a single workflow. According to McAleenan, the system is designed to help customs officials identify potential contraband, assess duties and keep legitimate shipments moving. He said the technology uses AI and computer vision to compare cargo scans against declarations and trade information, flagging anomalies for inspection officers. McAleenan said the platform can be configured to a country’s data and inspection workflows, with models updated as trade patterns and risks change. Management said the El Salvador deployment has generated interest from customs agencies in other countries. McAleenan also cited the scale of global merchandise trade and operational constraints at ports and border crossings as factors supporting demand for the product. The company also discussed expansion of its Ask Sage generative AI offering for secure and disconnected environments. McAleenan said Naval Air Systems Command, or NAVAIR, was among the company’s second-quarter Ask Sage customers, though he did not provide financial terms or specific application details. He said the use case includes rapid software deployment and agentic coding capabilities. Two weeks before the call, BigBear.ai expanded its offering with local hardware intended for deployments up to the top-secret level for Department of War customers and customers in other departments. McAleenan said the portable device can operate in locally connected or fully air-gapped environments, allowing users to access AI capabilities without an external network connection. He said the platform is model-agnostic and multimodal, supporting text, images, video and other data. Customers can purchase tokens through BigBear.ai, bring their own models and tokens, or white-label the platform, according to management. BigBear.ai also highlighted ConductorOS, its software for coordinating drones, sensors and other systems from different vendors. McAleenan said that during recent military exercises, the software enabled one soldier to command multiple drones from multiple vendors in a simulated degraded communications environment. At the U.S. Army’s Jailbreak event at Fort Carson in May, ConductorOS integrated a sensor and missile system that had not previously been able to communicate, according to McAleenan. He said the software received “jailbroken” status, signifying that it had approved interfaces and documentation for other systems to connect through it as part of a broader interoperable network. Ricker said BigBear.ai achieved Cybersecurity Maturity Model Certification Level 2 in July, ahead of schedule. The certification addresses security controls for protecting Controlled Unclassified Information and is a U.S. federal cybersecurity standard. Management said the certification supports its work with government customers and strengthens trust with international partners. McAleenan said the company’s strategy remains focused on national security and trade-and-travel markets, where it aims to provide mission-ready AI products and services. BigBear.ai is a provider of artificial intelligence (AI) and data analytics solutions designed to deliver actionable insights for public sector and commercial clients. Headquartered in Columbia, Maryland, the company specializes in advanced analytics, machine learning, predictive modeling and network analysis to support decision-making in complex, data-rich environments. Its clientele spans defense and intelligence agencies, civil government organizations and enterprise businesses seeking to enhance mission outcomes and operational efficiency. The company’s flagship offerings include an AI-driven analytics platform that integrates data engineering, algorithm development and visualization tools. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BigBear.ai Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue for Q2 2026 increased 13% year-over-year, reaching $36.7 million. Gross margin improved significantly by 781 basis points to 32.8%. Won over 20 new contracts in Q2, with values up to $5 million each, and backlog grew 9% since year-end. Achieved CMMC Level 2 certification ahead of schedule, enhancing cybersecurity credibility. Launched new product capabilities, including air-gapped local hardware for generative AI and ConductorOS for drone swarm orchestration, expanding market reach. Adjusted EBITDA remained negative at -$11.6 million, worsening from -$8.5 million in Q2 2025. Net loss was $25.7 million for the quarter, though improved from a $228.6 million loss in the prior year. Increased investments in sales, go-to-market, and R&D drove higher operating expenses. Dependence on a few large contracts, with many wins not disclosed due to confidentiality, creates revenue concentration risk. The company is aggressively pursuing M&A, which could lead to integration risks and potential dilution of focus. Warning! GuruFocus has detected 4 Warning Signs with BBAI. Is BBAI fairly valued? Test your thesis with our free DCF calculator. Q: What were the key financial highlights for BigBear.ai in the second quarter of 2026?A: Sean Ricker, CFO, reported that revenue for Q2 2026 was $36.7 million, a 13% increase year-over-year, driven by performance from GenAI platforms and products. Gross margin expanded significantly to 32.8%, up 781 basis points from Q2 2025, due to a higher mix of GenAI revenue. The net loss narrowed to $25.7 million from $228.6 million in the prior year, primarily due to non-cash fair value changes and a goodwill impairment charge that was not repeated. Adjusted EBITDA was negative $11.6 million, compared to negative $8.5 million in the prior year, reflecting increased investments in sales, go-to-market, and R&D. Q: Can you provide an update on the company's contract wins and backlog growth?A: Kevin McAleenan, CEO, stated that BigBear.ai won more than 20 new contracts in Q2, with values ranging up to $5 million each, across both new and existing customers in the US and abroad. This follows a Q1 announcement of a $53 million contract with an intelligence customer. As a result, the company's backlog grew by 9% since year-end, reaching $270 million, and the pipeline remains healthy. Q: What is the significance of the CargoSeer deployment in El Salvador?A: Kevin McAleenan, CEO, highlighted a significant win for CargoSeer in El Salvador, where the company signed a five-year commercial deployment agreement with a strategic regional customs expert after a successful 12-month pilot. This marks the first deployment of CargoSeer in Central America, integrating cargo X-ray imagery, import/export documents, and structured trade data into a single AI-powered workflow to help customs officials detect contraband, collect duties, and keep legitimate trade moving. Q: How is BigBear.ai addressing the need for generative AI in disconnected or air-gapped environments?A: Kevin McAleenan, CEO, explained that the company recently expanded its offering for the Department of War and other customers with a new local device, about the size of a hardcover book, that brings the core capabilities of its generative AI platform into fully air-gapped environments. This device is model-agnostic and multimodal, allowing analysts to use frontier AI models and process text, images, and video without an external network. It addresses customer pain points of access and predictability, supporting the Department of War's AI acceleration strategy. Q: What progress has been made with ConductorOS in drone warfare and autonomous systems?A: Kevin McAleenan, CEO, detailed that ConductorOS enabled a single soldier to command multiple drones from multiple vendors in a simulated degraded communications environment during military exercises. The software provides a common, vendor-neutral architecture for mixed fleets to share data and coordinate. At the U.S. Army's jailbreak event, ConductorOS integrated a sensor and missile system that had never communicated before, earning "jailbroken" status. This positions BigBear.ai to capitalize on the growing demand for multi-vendor drone and autonomous system integration. Q: What is the company's strategy regarding mergers and acquisitions (M&A)?A: Kevin McAleenan, CEO, stated that the company is increasing its pace to meet opportunities in the second half of 2026, with a full focus on delivering top-line revenue growth and accelerating the hunt for accretive M&A that offers catalytic technologies with rapid deployment potential. He noted that while the company will be deliberate about deploying its cash reserves, given the dynamic opportunities in large addressable markets, it is time to be aggressive. Q: Can you elaborate on the company's financial position and cash reserves?A: Sean Ricker, CFO, confirmed that the balance sheet remains strong, with total cash and investments of $410 million at the end of Q2. These reserves are being used to invest in new capabilities and seek accretive M&A to accelerate the growth strategy. The company ended the quarter with $270 million in backlog, an increase of about $22 million from the start of the year. Q: What is the significance of achieving CMMC Level 2 certification?A: Sean Ricker, CFO, announced that in July, BigBear.ai officially achieved Cybersecurity Maturity Model Certification (CMMC) Level 2, well ahead of schedule. This rigorous U.S. Federal cybersecurity standard verifies the company's advanced security controls to protect controlled unclassified information. The certification demonstrates a gold standard commitment to data privacy and infrastructure security, strengthening trust with customers and international partners. Q: How is the company positioned to capitalize on macro trends in defense and security?A: Kevin McAleenan, CEO, emphasized that global trends, including great power competition, regional conflicts, and dynamic domestic threat landscapes, are in the company's favor. He noted that AI and alternative technologies are fundamental to the reimagined global battlefield, and commercial entities need advanced AI for supply chain security. BigBear.ai's deep roots in mission environments and its focus on national security and trade/travel markets position it well to address these converging challenges. Q: What are the company's key operational focus areas for the remainder of 2026?A: Kevin McAleenan, CEO, reiterated that the company is on track to meet its top-line guidance of $135 million to $165 million. The leadership team is fully focused on following through, hitting targets, and continuing to earn investor trust. The "Accelerate" program is working, with a realized structure, clear growth plans, and the resources needed to grow BigBear.ai into a powerhouse in the defense and security technology sector. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Delivers Q2 2026 revenue of $36.7 million, increasing 13% year-over-year Expanded Q2 gross margins by 781 basis points from 25.0% to 32.8% year-over-year Backlog increased 9% to $269.6 million between December 31, 2025 and June 30, 2026 Total available cash and investments of $409.8 million as of June 30, 2026 Affirming full-year 2026 revenue guidance of $135 million - $165 million MCLEAN, Va., July 30, 2026--(BUSINESS WIRE)--BigBear.ai Holdings, Inc. (NYSE: BBAI) ("BigBear.ai" or the "Company"), a specialized defense & security technology company providing mission-ready AI, today announced financial results for the second quarter of 2026 and issued an investor presentation that has been posted to the Investor Relations section of the Company’s website. "It has been another strong quarter. Double-digit growth, significant margin expansion and more than 20 new contracts show that the BigBear.ai leadership team is following through on our commitments. We are in a strong financial position with $410 million of cash and investments, we’re on track for our target of 17% revenue growth, and we intend to accelerate. The second half of 2026 is all about execution discipline and positioning ourselves for accretive, catalytic M&A and building momentum for even stronger topline growth in 2027," said Kevin McAleenan, CEO of BigBear.ai. "BigBear.ai is in an excellent position to take advantage of the rapid expansion of investment and innovation in defense technology, which shows no signs of slowing down, given the macro environment. We have steadily been maturing the underlying financial discipline of the company and have significant cash in reserve so that when the right opportunity presents itself, we can move fast," said Sean Ricker, CFO of BigBear.ai. Financial Highlights Revenue increased 13% to $36.7 million for the second quarter of 2026, compared to $32.5 million for the second quarter of 2025 due to revenue from Ask Sage’s GenAI Platforms and Products. Gross margin was 32.8% in the second quarter of 2026, compared to 25.0% in the second quarter of 2025, due to increased volume from Ask Sage’s higher margin GenAI Platforms and Products in the second quarter of 2026 as compared to the second quarter of 2025. Selling, general, and administrative expenses increased $10.4 million from $21.5 million in the second quarter of 2025 to $31.8 million in the second quarter of 2026. The increase was primarily driven by increased intangible asset amortization from the Ask Sage acquisition, increased legal and proxy expenses related to our special stockholder meeting and establishing our new Retail Voting Program, and increased sales and marketing expenses resulting from partnerships and expanding our growth team. Net loss in the second quarter of 2026 was $25.7 million, compared to a net loss of $228.6 million for the second quarter of 2025. The decrease in net loss was primarily driven by a decrease in the loss due to non-cash changes in the fair value of derivatives of $135.3 million, a decrease of goodwill impairment of $70.6 million, a decrease in interest expense of $4.1 million, higher gross margin of $3.9 million and increased interest income of $2.1 million. These were partially offset by higher SG&A expenses of $10.4 million, described above, as well as an increase in research and development costs of $3.2 million. Non-GAAP Adjusted EBITDA* of $(11.6) million for the second quarter of 2026 compared to $(8.5) million for the second quarter of 2025 is primarily driven by an increase in SG&A expenses of $10.4 million, partially offset by higher gross margin of $3.9 million. The above information on financial outlook, and other sections of this release contain forward-looking statements, which are based on the Company’s current expectations. Actual results may differ materially from those projected. It is the Company’s practice not to incorporate adjustments into its financial outlook for proposed acquisitions, divestitures, changes in law, or new accounting standards until such items have been consummated, enacted, or adopted, as the case may be. For additional factors that may impact the Company’s actual results, refer to the "Forward-Looking Statements" section in this release. Forward-Looking Statements This release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act"), the Securities Exchange Act of 1934 (the "Exchange Act") and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "project," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding our industry, future events, and other statements that are not historical facts. These statements are based on current expectations and beliefs concerning future developments and their potential effects on us and should not be relied upon as representing BigBear.ai’s assessment as of any date subsequent to the date of this release. There can be no assurance that future developments affecting us will be those that we have anticipated. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including those relating to: changes in domestic and foreign business, market, financial, political, and legal conditions; the uncertainty of projected financial information; delays caused by factors outside of our control, including changes in fiscal or contracting policies or decreases in available government funding, including as a result of events such as war, incidents of terrorism, natural disasters, and public health concerns or epidemics; changes in government programs or applicable requirements; budgetary constraints, including any potential constraints as a result of recent or future federal government layoffs, 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, including government shutdowns or the ability of the U.S. federal government to unilaterally cancel a contract with or without cause, and more specifically, the potential impact of the U.S. DOGE Service Temporary Organization on government spending and terminating contracts for convenience; the failure of contracts comprising backlog to result in revenue due to changes in funding, terminations for convenience, or option periods going unexercised; the impact of tariffs or other restrictive trade measures; implementation of spending limits or changes in budgetary constraints; influence by, or competition from, third parties with respect to pending, new, or existing contracts with government customers; changes in our ability to successfully compete for and receive task orders and generate revenue under Indefinite Delivery/Indefinite Quantity contracts; our ability to realize the benefits of the strategic partnerships; risks that the new businesses will not be integrated successfully or that the combined companies will not realize estimated cost savings; failure to realize anticipated benefits of the combined operations; potential delays or changes in the government appropriations or procurement processes; risks regarding the market and our customers accepting and adopting our products, including future new product offerings; the high degree of uncertainty of the level of demand for, and market utilization of, our solutions and products; our ability to successfully execute and realize the benefits of joint ventures, channel sales relationships, partnerships, strategic alliances, subcontracting opportunities, customer contracts and other commercial agreements to which we are a party; and those factors discussed in the Company’s reports and other documents filed with the SEC, including under the heading "Risk Factors." If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from those projected by these forward-looking statements. There may be additional risks that we presently do not know or that we currently believe are immaterial which could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this release. We anticipate that subsequent events and developments will cause our assessments to change. However, we specifically disclaim any obligation to do so. Accordingly, undue reliance should not be placed upon the forward-looking statements. Non-GAAP Financial Measures The financial information and data contained in this press release is unaudited. Some of the financial information and data contained in this press release, such as EBITDA and Adjusted EBITDA, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP in our press release, we also report certain non-GAAP financial measures. A "non-GAAP financial measure" refers to a numerical measure of a company’s historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in such company’s financial statements. Non-GAAP financial measures should not be considered in isolation or as a substitute for the relevant GAAP measures and should be read in conjunction with information presented on a GAAP basis. Because not all companies use identical calculations, our presentation of non-GAAP measures may not be comparable to other similarly titled measures of other companies. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should not be considered measures of BigBear.ai’s liquidity. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of certain items, as defined in our non-GAAP definitions below, which are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, even where similarly titled, limiting their usefulness for comparison purposes and therefore should not be used to compare BigBear.ai’s performance to that of other companies. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP financial measures. We believe these non-GAAP financial measures provide investors and analysts with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key measures used by management to operate and analyze our business over different periods of time. EBITDA is defined as net loss before interest expense, interest income, income tax expense (benefit) and depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted for equity-based compensation, employer payroll taxes related to equity-based compensation, net increase in fair value of derivatives, restructuring charges, non-recurring strategic initiatives, non-recurring integration costs, non-recurring litigation, transaction expenses, goodwill impairment, and loss on extinguishment of debt. Similar excluded expenses may be incurred in future periods when calculating these measures. BigBear.ai believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. BigBear.ai believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing BigBear.ai’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expense and income items are excluded or included in determining these non-GAAP financial measures. Management uses EBITDA and Adjusted EBITDA as non-GAAP performance measures which are reconciled to the most directly comparable GAAP measure, in the tables included in this release. The Company does not reconcile forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure (or otherwise describe such forward-looking GAAP measure) because it is not able to forecast the most directly comparable measure calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. As a result, no guidance for the Company’s net (loss) income or reconciliation of the Company’s Adjusted EBITDA guidance is provided. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a potentially significant impact on its future net income (loss). 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 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730306752/en/ Contacts Investor Contact [email protected] Media Contact [email protected]

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. BigBear.ai Holdings (BBAI) is set to report Q2 2026 results and host its earnings call on July 30 at 4:15 PM US Eastern Time, drawing investor attention to the stock. See our latest analysis for BigBear.ai Holdings. BigBear.ai Holdings heads into the Q2 2026 report with momentum clearly fading, with the share price at $2.59 after declining 28.06% over the past 30 days and 55.65% year to date, despite a positive 3 year total shareholder return of 30.81%. If BigBear.ai’s swings have you thinking about diversification, this could be a useful moment to scan the market for 65 profitable AI stocks that aren't just burning cash Bulls see BigBear.ai’s pullback and revenue growth as an entry point, while bears focus on losses and heavy share price declines. Which side do the current valuation markers lean toward as earnings approach? At a last close of $2.59 versus a most widely followed fair value of $5.00, BigBear.ai Holdings is framed as significantly discounted ahead of Q2 2026 earnings. Read the complete narrative. Want to know what powers that $5.00 fair value? The narrative leans on brisk revenue expansion, margin repair, and a punchy future earnings multiple. Curious which assumptions really carry the weight here? Result: Fair Value of $5.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, BigBear.ai also faces inconsistent government-driven revenue, ongoing losses, and cash outflows, which could quickly challenge the upbeat $5.00 narrative. Find out about the key risks to this BigBear.ai Holdings narrative. That $5.00 fair value leans heavily on long term earnings assumptions. Looking at BigBear.ai Holdings through its P/S ratio of 9.7x presents a very different picture. The stock sits well above the US IT industry at 1.8x, peers at 0.3x, and even a fair ratio of 1.6x. Is this a margin of safety or a pricing risk you want to carry into the Q2 print? See what the numbers say about this price — find out in our valuation breakdown. The mixed tone around BigBear.ai Holdings is clear, so use it as a prompt to check the key issues yourself and move quickly while sentiment is still forming. A helpful place to start is by reviewing the 2 important warning signs. If BigBear.ai has sparked fresh questions about where to put your capital next, do not stop here. Broader idea hunting can help sharpen your overall portfolio decisions. Use the Simply Wall St screener to uncover ideas that match your style before the next wave of opportunities moves on. Target potential value opportunities by scanning 49 high quality undervalued stocks that combine appealing prices with stronger underlying fundamentals. Strengthen your income focus by reviewing 9 dividend fortresses that offer higher yields with an emphasis on durability. Lean into quality and resilience by checking the solid balance sheet and fundamentals stocks screener (48 results) to see which companies pair financial strength with solid business profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BBAI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Cognizant (CTSH) came out with quarterly earnings of $1.37 per share, missing the Zacks Consensus Estimate of $1.38 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.73%. A quarter ago, it was expected that this information technology consulting and outsourcing firm would post earnings of $1.33 per share when it actually produced earnings of $1.4, delivering a surprise of +5.26%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Cognizant, which belongs to the Zacks Computers - IT Services industry, posted revenues of $5.48 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.03%. This compares to year-ago revenues of $5.25 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cognizant shares have lost about 39.4% since the beginning of the year versus the S&P 500's gain of 8.5%. While Cognizant has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cognizant was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.46 on $5.69 billion in revenues for the coming quarter and $5.70 on $22.28 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, BigBear.ai Holdings, Inc. (BBAI), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BigBear.ai Holdings, Inc.'s revenues are expected to be $36.37 million, up 12% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report BigBear.ai Holdings, Inc. (BBAI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BigBear.ai Holdings, Inc. BBAI is scheduled to report second-quarter 2026 results on July 30, 2026, after the closing bell. The upcoming quarter is expected to reflect continued execution of defense and security contracts, growing adoption of generative AI solutions and sustained momentum across its National Security and Trade & Travel markets.BigBear.ai delivered a stable first-quarter 2026, with revenues of $34.4 million remaining largely flat year over year as growth from its Ask Sage generative AI platform offset lower Army program volumes. The company significantly improved gross margin to 34% from 21.3%, secured several high-value defense and AI contracts that lifted backlog 14% sequentially to $281.9 million and ended the quarter with a strong $431.5 million in cash and investments.BigBear.ai reported a loss per share of 8 cents, which came in line with the Zacks Consensus Estimate but narrower than the year-ago level of a loss per share of 25 cents. While adjusted EBITDA declined due to higher growth investments, BigBear.ai reaffirmed its full-year 2026 revenue guidance of $135-$165 million, reflecting confidence in its growth outlook.This artificial intelligence (AI) provider surpassed earnings estimates in two of the trailing four quarters and missed on one and met on one occasion, with an average surprise of 4.4%, as shown below. Image Source: Zacks Investment Research The Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged at a loss of 4 cents over the past 60 days. The estimated figure indicates a narrower loss from the year-ago reported loss of 6 cents per share. The consensus mark for revenues is pegged at $36.4 million, suggesting 12% year-over-year growth.For 2026, BigBear.ai is expected to register a 14.8% increase in revenues from a year ago. Its bottom line is expected to witness a loss of 25 cents per share, which is narrower than the 2025 figure of an 82-cent loss. BBAI’s Earnings Estimate Image Source: Zacks Investment Research BBAI’s Revenue Estimate Image Source: Zacks Investment Research Second-quarter revenues are expected to benefit from the execution of recently awarded contracts, including a classified intelligence community program, airport security deployments and additional work related to Shipyard AI and Ask Sage. Management has also highlighted a stronger pipeline supported by improving Department of Homeland Security funding, an enhanced go-to-market structure and increasing opportunities across defense and border security. These factors are expected to support revenue growth through the remainder of 2026. BigBear.ai continues to prioritize National Security and Trade & Travel as its two core growth markets. During the second quarter, investors will look for progress in deploying Ask Sage across government agencies, commercialization of the platform beyond federal customers and continued adoption of CargoSeer's AI-powered inspection capabilities. Management also expects organizational realignment to improve customer engagement and accelerate solution delivery. Margins are expected to remain supported by a richer mix of software and AI platform revenues, particularly from Ask Sage, which carries higher profitability than traditional services. However, continued investments in research and development, sales expansion, marketing initiatives and integration of recent acquisitions may limit the pace of operating margin improvement during the quarter. Our proven model does not conclusively predict an earnings beat for BigBear.ai for the quarter to be reported. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for this to happen, which is not the case here, as you will see below.Earnings ESP: BBAI has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. BigBear.ai stock has lost 47.6% year to date, lagging the Zacks Computers - IT Services industry, the Zacks Computer & Technology sector and the S&P 500 Index. BBAI Stock’s Performance Image Source: Zacks Investment Research BigBear.ai competes with Palantir Technologies Inc. PLTR, C3.ai, Inc. AI and Parsons Corporation PSN across AI-powered decision intelligence, defense technology, homeland security and mission-critical software markets. So far this year, all three peers have faced selling pressure, with Palantir declining 26%, C3.ai falling 34.6% and Parsons slipping 3.8%. In terms of the forward 12-month price/sales (P/S), BBAI stock is currently trading at a discount to its industry, as shown below. BBAI’s P/S Ratio (Forward 12-Month) vs. Industry Image Source: Zacks Investment Research At 8.66X forward 12-month sales, BigBear.ai trades below Palantir Technologies at 33.08X, reflecting a substantially more conservative valuation despite operating in similar AI-driven defense and national security markets. However, its multiple remains above C3.ai at 6.06X and Parsons at 0.92X, indicating investors are assigning a premium for BigBear.ai's higher-growth, mission-ready AI strategy and expanding generative AI platform. The current valuation suggests the market recognizes the company's long-term growth potential but remains cautious about execution and profitability. Continued progress in scaling Ask Sage, converting its growing backlog into revenue and securing additional defense and homeland security contracts could support further multiple expansion over time. The company continues to benefit from a growing backlog, expanding adoption of its Ask Sage platform and steady demand across defense and homeland security markets, while analysts expect narrower losses and double-digit revenue growth. Although execution risks remain, its reasonable valuation relative to key AI peers and improving business fundamentals support a balanced risk-reward profile. Investors should maintain their positions and watch for further progress in contract execution, AI platform adoption and margin expansion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BigBear.ai Holdings, Inc. (BBAI) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Parsons Corporation (PSN) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MCLEAN, Va., July 22, 2026--(BUSINESS WIRE)--BigBear.ai (NYSE: BBAI), a specialized defense technology company, providing mission-ready AI for national security and trade & travel customers, today announced that it will publish its second quarter earnings release on Thursday, July 30 at approximately 4:15 pm ET and will host an earnings call at 4:30 pm ET. The earnings release will be accessible on the Company’s investor relations website: https://ir.bigbear.ai. Additional details on the earnings call will be made available on the investor relations website on July 30, 2026. 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. 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/20260722572018/en/ Contacts General/Sales: [email protected]: [email protected]: [email protected]