BBAI

BigBear.ai Holdings, Inc. BBAI raised its 2026 revenue outlook following stronger third-quarter growth, expanding margins and a series of government contract wins. Management emphasized accelerating demand for secure, mission-specific artificial intelligence solutions. The third-quarter 2026 earnings call centered on converting contract momentum into sustained growth, expanding the company's generative AI footprint and maintaining financial flexibility for acquisitions. BigBear.ai increased its full-year 2026 revenue guidance to $150 million-$165 million, representing a 5% increase at the midpoint from its previous outlook. The revised midpoint implies 23% growth over 2025. CEO Kevin McAleenan highlighted that this marked the company's first upward revenue guidance revision, supported by its third consecutive quarter of revenue growth. Reported revenues of $43.6 million exceeded the Zacks Consensus Estimate of $38.94 million. Sequential revenue growth accelerated to 18.6% from 6.7% in the preceding quarter. The company incurred a loss of 6 cents per share, in line with the consensus estimate. BigBear.ai Holdings, Inc. price-consensus-eps-surprise-chart | BigBear.ai Holdings, Inc. Quote McAleenan highlighted more than 25 contract wins since the second quarter, representing over $225 million in total contract value. These included major recompetes and classified national security awards. Two significant subcontracts with SAIC and Unissant extended BigBear's support for U.S. Customs and Border Protection. Both five-year arrangements cover targeting, risk assessment and operational software capabilities supporting border security missions. Backlog increased 22% sequentially to $330 million. However, approximately 23% of backlog was funded at quarter-end, underscoring the distinction between contracted opportunities and immediately available revenue. McAleenan identified the company's generative AI platform, acquired through Ask Sage in December 2025, as a central contributor to customer expansion. New enterprise customers included the FBI, U.S. Coast Guard, NASA, the Department of Energy and the Department of Veterans Affairs. The platform enables secure access to generative AI models and agentic tools, including deployment in disconnected environments. Management emphasized BigBear's position in enterprise AI platforms and mission-specific applications rather than capital-intensive infrastructure or foundation model development. Its model-agnostic approach allows customers to incorporate advances from multiple AI providers alongside proprietary capabilities. Gross margin expanded 878 basis points year over year to 31.2%, driven particularly by the generative AI platform's contribution. Adjusted EBITDA improved modestly to a loss of $9.1 million from a loss of $9.4 million a year earlier. Selling, general and administrative expenses increased to $31.3 million, reflecting higher amortization, labor and marketing spending. The company recorded a $91.9 million net loss, primarily reflecting a $76.7 million noncash goodwill impairment charge. The impairment was principally associated with a change in forecasts during the quarter. McAleenan reiterated that identifying acquisition targets remains one of his two principal priorities, alongside accelerating revenue growth. Potential transactions would focus on expanding technological capabilities or increasing market penetration and scale. CFO Sean Ricker emphasized the company's balance-sheet position, with nearly $400 million in cash and investments at quarter-end. Approximately $17 million in convertible debt remained outstanding, scheduled to mature in December 2026. Management expects to enter 2027 debt-free, providing flexibility to pursue strategic opportunities. The acquisition strategy remains focused on technologies that can be deployed rapidly or strengthen BigBear's presence in existing markets. Looking toward 2027, McAleenan identified defense modernization, shifting global trade flows, increasing international travel and evolving security threats as important demand drivers. He emphasized opportunities in secure AI deployment across intelligence operations, border protection and critical infrastructure. The company also expanded its healthcare presence through a two-year Children's Minnesota renewal involving predictive analytics and hospital capacity optimization. Management's forward-looking emphasis remained on translating specialized AI capabilities and established customer relationships into broader operational deployments. McAleenan closed the call emphasizing execution, contract expansion and acquisition opportunities as the company's priorities heading into 2027. Management expressed confidence in its business momentum while maintaining a strategy centered on applied AI solutions for national security, trade and travel customers. BBAI currently carries a Zacks Rank #4 (Sell), indicating an unfavorable earnings estimate revision outlook and weaker near-term performance prospects under the Zacks ranking framework. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The stock holds a Value Score of F, Growth Score of D, Momentum Score of D and VGM Score of F. These grades indicate weak characteristics across valuation, growth and price momentum, with the combined VGM assessment also unfavorable. The combination of a Zacks Rank #4 and weak Style Scores warrants caution despite management's improved operating outlook. The Zacks Rank can change as analysts revise their earnings estimates following the latest quarterly results. 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

Palantir Technologies (NASDAQ:PLTR), an AI-powered defense and enterprise data analytics platform, closed at $175.40, down 1.65%. The stock fell after it announced third quarter results on Nov. 2, and investors are watching U.S. commercial bookings and international growth next. Trading volume reached 52.4 million shares, coming in about 66% above its three-month average of 31.5 million shares. Palantir Technologies IPO'd in 2020 and has grown 1,746% since going public. The S&P 500 (SNPINDEX:^GSPC) rose 0.36% to 7,569, and the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.83% to 25,372. Among enterprise software and AI-driven data analytics for government and commercial customers peers, C3.ai (NYSE:AI) closed at $11.54, -0.09%, and BigBear.ai Holdings (NYSE:BBAI) closed at $2.53, -1.94%, showing mixed sentiment. On Tuesday, Nov. 3, Wall Street analysts are weighing Palantir's future earnings, as the company reported remaining performance obligations (RPO) of $4.9 billion in the third quarter, the same figure as Q2. RPO represents the total value of contracted revenue that Palantir has promised to deliver in the future but has not yet recognized as revenue. The figure remaining unchanged suggests future sales may stagnate, contributing to Palantir's share price decline. Adding fuel to the fire is the company's Q3 total contract value (TCV) growth of 11% year over year. In Q2, TCV rose 153%. TCV represents the total potential lifetime revenue of all customer agreements, and a drop here further points to a future sales slowdown. This, flat RPO, and an elevated share price valuation, as the stock hovers around a forward earnings multiple of 86, combined to send the stock down. Yesterday, Palantir reported revenue above $2 billion for the first time and raised 2026 sales guidance to $8.53 billion. In addition, its U.S. commercial revenue soared 148% year over year to $984 million, surpassing its U.S. government revenue for the first time in a sign businesses are flocking to Palantir's artificial intelligence solutions. While the company's Q3 performance was excellent, it's Palantir's future that Wall Street is concerned about today. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $336,195!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,241,567!* Now, it's worth noting Stock Advisor's total average return is 875% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of November 3, 2026. Robert Izquierdo has positions in C3.ai and Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy. Stock Market Today, Nov. 3: Palantir Falls After Q3 Results as Valuation Stays in Focus was originally published by The Motley Fool

- Palantir fell 6% despite beating estimates with 96% revenue growth, as slower Q4 sequential growth guidance pressured shares; Datadog and Snowflake also declined. - Apple shares slid after its earnings report flagged a weak gross-margin outlook driven by higher memory costs and Siri AI expenses. - Bears highlight Palantir's 252x P/E and soaring stock-based compensation, while bulls point to a Rule of 40 score of 158% and strong customer retention. - Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Snowflake didn't make the cut. Enter your email to see the names that beat SNOW. The report is free. Enter your email and see if any of your stocks made the cut. A beat-and-raise quarter from Palantir Technologies (NASDAQ:PLTR) isn't getting a warm welcome on Wall Street. Palantir stock is at $167.94, down 6% in morning trading. That compares with a close of $178.34 on November 2, the session that ended just before the company released its Q3 2026 results. On paper, the report met every goal: revenue and adjusted earnings per share (EPS) beat estimates, and Palantir raised its full-year outlook. What's weighing on the shares is the slower sequential growth built into the company's Q4 2026 forecast. Several of Palantir's earlier earnings beats were also followed by declines, so the reaction fits a familiar pattern. Palantir disclosed on November 2 that its Q3 revenue reached $2.313 billion, up 96% year over year (YoY). That cleared Bloomberg's $2.17 billion consensus estimate. Adjusted EPS at Palantir came in at $0.44, beating Yahoo Finance's $0.40 consensus estimate. It was the company's 10th consecutive EPS beat. The biggest milestone came from Palantir's U.S. commercial business, where revenue jumped 148% YoY to $984 million. For the first time, U.S. commercial sales topped Palantir's U.S. government revenue, which rose 96% to $953 million. ------ Free Report, Just Released Why Didn't SNOW Make The Top 10 List? 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. And SNOW didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → ------ CEO Alex Karp addressed analysts. He told them the commercial results were "out of bounds." Management raised Palantir's full-year 2026 revenue outlook to a range of $8.530 billion to $8.534 billion, above Yahoo Finance's $8.2 billion analyst estimate. A higher full-year U.S. commercial revenue target of more than $3.559 billion rounded out Palantir's raised guidance. Guidance from Palantir calls for Q4 revenue of $2.65 billion, which also beat estimates. However, per Yahoo Finance, the forecast implies 15% quarter-over-quarter growth, slower than the 20% pace in the same period last year. Slowing sequential growth is a hard sell for a stock priced for acceleration, and that's the tension behind the selloff. Software stocks are lower across the board, but Palantir's decline is the largest of the group. Datadog (NASDAQ:DDOG) stock is at $209.77, down 3%. Meanwhile, Snowflake (NYSE:SNOW) stock is at $284.85, down 2%. A fresh earnings report gives Palantir its own reason to reprice, on top of the mood across the sector. All three stocks slid sharply over the past week in a broader software and artificial intelligence selloff. Over that stretch, Datadog fell even harder than Palantir, which undermines the case that Palantir's slump is purely a reaction to its own report. Smaller government-focused names are holding up better. BigBear.ai (NYSE:BBAI) stock is inching higher. Pressure on technology extends past software. Shares of Apple (NASDAQ:AAPL) are sliding after the company's November 2 report included a weak gross-margin outlook tied to higher memory costs and Siri AI expenses. Jitters over artificial intelligence spending have also weighed on software, and the U.S. midterm elections on November 3 could add near-term volatility. Palantir sells its Foundry, Ontology and AIP platforms to U.S. government agencies and large enterprises. It positions them around what it calls Sovereign AI. Those contracts tend to involve long sales cycles and hands-on deployment work. Datadog runs an observability and monitoring platform sold as software as a service (SaaS), with pricing tied to usage. Snowflake operates a cloud data platform that charges by consumption, so its revenue rises and falls with how much data customers process. Both models follow customer activity closely, while Palantir's larger contract wins can make its quarterly signals lumpier. Valuation also separates the three, since the market gives Palantir a far higher multiple than Datadog or Snowflake, and that premium leaves less room for any wobble in the company's growth path. Palantir's Q4 results will show whether sequential growth picks back up from the pace its forecast implies. Bulls can point to net dollar retention of 165%, a Rule of 40 score of 158% and a higher outlook for revenue, adjusted operating income and adjusted free cash flow. Bears see warning signs beneath the beat. Palantir's price-to-earnings (P/E) ratio of 252x leaves little margin for error. The company's total contract value grew just 6% YoY to $2.918 billion. CFO Dave Glazer said several eight-figure deals were "shorter in duration than usual," though he expects contract length and size to grow over time. Stock-based compensation at Palantir rose to $318.9 million in Q3 from $172.3 million a year earlier. Shareholders focused on the long-term story have strong fundamentals on their side, while short-term momentum has turned against the stock. Near-term volatility could continue until the debate over Palantir's sequential growth resolves. 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. And SNOW wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->> Contact [email protected] for any questions or corrections.

Image source: The Motley Fool. Tuesday, Oct. 27, 2026 - Chief Financial Officer - Sean Ricker - Chief Executive Officer - Kevin McAleenan Need a quote from a Motley Fool analyst? Email [email protected] Operator: Greetings, and welcome to the Big Bear AI Holdings Inc. Third Quarter 26 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. It is now my pleasure to introduce Sean Ricker, Chief Financial Officer. Sean Ricker: Good afternoon, and thank you all for joining us today for our third quarter 26 earnings call. I am Sean Ricker, CFO of BigBear AI. I am joined today by our CEO, Kevin McAleenan. Statements made in today's call that are not historical facts are considered forward looking statements and are made pursuant to the safe harbor provisions of the federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. These statements including discussion of our guidance, expectations for 2027, and market estimates speak only as of today, and we undertake no obligation to update them. Please see today's press release and our SEC filings for a description of some of the factors that may cause actual results to differ materially from those in the forward-looking. We also have posted presentation slides and financial charts on our website today that we plan to address during the call to supplement our comments. These materials also include information regarding non GAAP measures that may be used in today's call. Please access our website at www.bigbear.ai and click on the Investor Relations link to view and follow the charts. Now I will hand it over to Kevin. Kevin McAleenan: Thank you, Sean. BigBear had another strong quarter. I will start with 4 important financial updates for our shareholders. First, revenue grew 31% year over year, our third consecutive quarter of growth. Because of this performance, we are raising our full year 2026 revenue guidance range to $150 million to $165 million. This is the first time Big Bear has raised our revenue guidance and achieving the midpoint would represent 23% growth over last year. Second, we have won and announced more than 25 new contracts since the second quarter. Together, these represent more than $225 million in contract value. Wins include significant recompetes for the Department of Homeland Security, and several important new mission customers as well as classified awards in our national security business. Third, we have sustained our gross margin improvement trend. Gross margins rose by 878 basis points compared with the same period last year. Fourth, we maintained our strong cash position. We entered the fourth quarter with $400 million in cash and investments in reserve. Taken together, we are following through on what we set out to achieve this year. We are growing top line revenue and expanding our customer base faster than Big Bear has achieved before. While diversifying our revenue mix. And defending our existing business, all of which strengthens our position for growth in the years ahead. My top 2 priorities for the remainder of the year continue to be delivering top line revenue growth and pursuing our hunt for M&A targets with clear potential for either rapid deployment of cutting edge capabilities or increasing our market penetration and scale. We are executing against those priorities, intend to finish the fiscal year strong, are in a solid position to grow in 2027. Given the dynamic environment in security and defense technology, I would like to turn now to why we are winning with customers where we play in the AI landscape, and the contract wins that show our strategy is working. Stated simply, we are winning because we combine operational experience, unique technical capabilities, and deep customer trust. I will unpack that to emphasize where we are focused and why I believe we are differentiated. Big Bear is a specialized security and defense technology company. Our objective is to be the mission AI partner of choice for the United States government, its allies, and critical industries in the US and internationally. We focus on developing and deploying cutting edge AI capabilities for operators who take on the toughest problems in national security and trade and travel. We specialize in technology, platforms, tools, and solutions for missions that are very difficult for new entrants to understand and penetrate. We leverage deep customer trust to accelerate the application of AI in secure, complex, and high consequence operating environments. And because we are a first mover, we can address and capitalize on demand for secure AI now, while innovating at the pace our mission partners need. I believe we can do all of this as well as any company in the world. We are agile and well capitalized enough to move quickly and innovate on near term opportunities and changing customer needs. Yet we are big enough to scale solutions and apply technology for complex, hard to navigate mission sets with the highest security expectations. For those who are looking to situate Big Bear in the wider technology landscape, you can think of the AI value chain as having 5 basic layers. Each with different economics, capital requirements, and risk profiles. 1, the physical foundation. Chips, networking, memory, and the power and cooling equipment that runs them. 2, compute infrastructure, data centers and cloud providers that deliver computing capacity. 3, foundation models, large scale general purpose AI models, including language, and multimodal models that support a wide range of applications. 4, tools and enterprise AI platforms. The technology that securely connects models to customer data, workflows, and operational systems. And 5, AI applications and solutions. Products and mission specific capabilities that put AI to work for real users. Big Bear operates primarily across the last 2 layers, 4 and 5, and that is where we aim to continue to win greater market share. We are an applied AI business combining proprietary platforms, applications, and specialized AI and machine learning models, with the expertise required to deploy them in mission critical environments. We connect AI to our customers' data and workflows. And we build and deploy mission specific platforms and solutions that make AI work in practice. Importantly, we do not simply integrate AI developed by others. We also develop our own specialized capabilities drawing on domain expertise, specific customer requirements and data to solve complex operational problems. This is where we intend to differentiate. In other words, Big Bear turns advanced AI capabilities, including frontier or open-weight models, multi-agent systems, and specialized machine learning algorithms into production ready deployments, providing immediate operational value and changing how critical missions get done. And I would like to underscore that our position in this value chain is deliberate and built on our track record of rapid innovation with advanced tools directly supporting operators. You do not need to finance data center build outs or the development of general purpose foundation models to participate in the growth of AI. While markets focus on these macro trends and investors increasingly scrutinize the capital intensity, leverage, and financing risks associated with the infrastructure build, it is important to distinguish those exposures from the more focused economics of our business and the opportunities presented by how government and critical infrastructure customers are now working to adopt AI tools. We benefit from innovation across the AI ecosystem. But pursue that opportunity through a much more targeted and less capital intensive model. In fact, our strategy is designed so that our business benefits as the technology advances. Our model agnostic platform capabilities give us the flexibility to incorporate advances in third party AI models as they emerge, alongside the specialized capabilities we develop ourselves without depending on any single model provider. Deep mission expertise, a security cleared workforce, and the ability to deploy in secure real world environments are differentiators. Government customers want capability that works in the field. So do commercial leaders in critical industries. The demand is here now, and customers are starting to move more quickly because their missions require it. As do policymakers and shareholders alike. In reality, most agencies and companies are in the early stages of applying AI to operational use cases and workflows. And the adoption curve is steep. that is exactly where we play. We serve the full spectrum of national security and travel and trade mission customers. That includes the executives who set mission priorities and the CIOs and CTOs who own and execute technology road maps. It includes the program leaders who turn operational needs into funded programs, and we never lose sight of the operators. We depend on these tools every day, from intelligence fusion centers to combatant commands and operations at the edge to shipyards and ports of entry. We understand what each of them needs. Each win we secure is further proof that our customers want to deploy specialized AI in secure environments for these complex use cases. The best evidence for customer trust is the results that we are delivering in contract wins. Demand for AI built by operators for operators is getting stronger by the quarter. Combining Q2 and Q3,, have announced more than 45 new contract wins in multiple markets demonstrating that we are gaining significant traction across the board. Included in our Q3 wins, we secured 2 substantial subcontracts centered on Homeland and Border Security, 1 on SAIC's team and the other partnering with Unison. Both extend our long standing work supporting US customs and border protection targeting and systems program directorate. Together, they represent a meaningful contribution to our revenue base and enhance our backlog. More broadly, these contracts provide our developers and program professionals opportunity to support essential CBP risk assessment and targeting operations for counterterrorism, counter narcotics, human smuggling, trade enforcement, agriculture protection, and other security missions. Under SAIC's newly awarded 5-year recompete task order, Big Bear will provide integrated AI and analytics to optimize critical systems essential for securing the US border. Big Bear helps CBP assess security risk from travelers and cargo entering our country. Through our work under Unison's newly awarded 5-year contract, Big Bear will continue software development work on CBP vetting workflow operations and analysis extending our team's history of supporting CBP's ability to detect and interdict threats at our borders. In addition to these key long term wins with existing customers, Big Bear successfully expanded our customer and contract base in Q3. Our generative AI platform, which we have adapted and enhanced since acquiring Ask Sage in December, has played a big part in growing our customer base. New enterprise customers in Q3 include critical national security departments and agencies, including the Federal Bureau of Investigation, US Coast Guard, NASA, the Department of Energy, the Department of Veterans Affairs. While the mission needs and use cases may differ, Big Bear's generative AI platform provides secure access to the latest generative AI models and AgenTeq tools with the choice of available models from leading AI and cloud providers, and the ability for these agencies to process secure data with these tools, and build agents for advanced workflows. These contracts demonstrate that demand continues to grow across defense intelligence, and civilian agencies, including in disconnected and air gapped environments. The team and I are extremely proud to be serving these agencies, each of which plays a critical role in our national and economic security. In addition, the work we do to support critical national infrastructure, often with our digital twin modeling and simulation tools, is also growing well. In addition to the contracts with shipyards, manufacturing facilities, airports, and supply chain players that we have announced this year, we have added customers in health care. Our health care system is part of our nation's critical infrastructure. And requires a level of operational rigor and data security similar to our security customers. Just as we deploy specialized AI for national security use cases, FutureFlow Rx addresses complex health care operational challenges where lives are at stake. We recently secured a 2-year renewal with Children's Minnesota 1 of the largest pediatric health systems in the United States, continuing their investment in our digital twin and predictive analytics solution for health care. The agreement focuses on AI applications that help hospital leaders anticipate patient flow, evaluate operational challenges, and optimize capacity and resources. Our continued partnership validates our ability to deliver mission ready AI solutions across sectors extending our impact into critical civilian infrastructure that communities depend on every day. Combined, these wins show that our strategy is working. We have organized our business to pursue growth with focus and discipline, with technology teams aligned to the specific mission customers that we serve. Since May this year, our structure and go to market motions are simpler and more targeted, and we are executing with increasing consistency. I will now turn it over to Sean to walk us through the details on our financials. Sean Ricker: Thanks, Kevin. Our results were strong operationally and financially this quarter. Revenue for the third quarter of 26 was $43.6 million an increase of 31% year over year due to improved revenue performance across the business. And substantially driven by our Big Bear generative AI platform, which was acquired as Ask Sage in December 2025. Our improved gross margins continued this quarter. Growing to 31.2% an increase of 878 basis points as compared to the third quarter of 25. The expansion in gross margins was particularly supported by the results of our generative AI platform. We recorded a noncash goodwill impairment charge of $76.7 million or $0.16 per share in the third quarter of 26. Which was the primary driver of our net loss of $91.9 million or $0.19 per share this quarter as compared to net income of $2.5 million in the comparable period. Adjusted EBITDA improved to negative $9.1 million this quarter versus negative $9.4 million in the comparable period. Our balance sheet continues to remain strong. We finished the third quarter with almost $400 million of cash and investments. With about $17 million of convertible debt outstanding, that will mature in December of this year, we expect to be in great shape to kick off 2027 debt free and with maximum flexibility to be opportunistic in the execution of our strategy. Turning to backlog, we ended the third quarter with $330 million in backlog, an increase of 22% from the end of last quarter driven by the new wins and successful recompetes that Kevin previously mentioned. The performance we saw this quarter exceeded our expectations giving us confidence in a stronger revenue trajectory as we look ahead to the end of this year. Building on the momentum we have seen this quarter, we now expect full year revenue between $150 million to $165 million representing a 5% increase at the midpoint versus the guidance range we provided earlier this year. At the midpoint, this would represent 23% revenue growth relative to our 2025 results. This higher revenue guidance reinforces 2 important growth dynamics. First, we are growing top line revenue. This is our third sequential quarter of organic revenue growth this year. Second, our revenue growth has accelerated this year. Quarter over quarter revenue growth was 6.7% in the second quarter and has accelerated to 18.6% in the third quarter. As we look ahead at the business in totality, we are feeling positive about our momentum as we close out this year and look ahead to 2027. Now I will turn it back to Kevin for some closing remarks. Kevin McAleenan: Thank you, Sean. And thank you to the whole Big Bear team for your hard work. We approached the end of the year with real confidence, thanks to our underlying financial strength and win momentum. I would like to close by looking out to 2027. And talk about 4 trend lines in the macro environment that are generating tailwinds for our business. The catalyst fueling these trends are continued technological breakthroughs, increased geopolitical instability, and accelerating great power competition. And I believe their impact is likely to grow next year. First, defense modernization. How wars are fought is changing. Shifts of this magnitude happen rarely, and we are only at the start of the change curve. The world is wrestling with dozens of active conflicts. In 2025 alone, global military spending reached a record $2.9 trillion. While US defense spending grows, the proportion being directed to disruptive technologies and new entrants is increasing as well. In the 2027 US defense budget, combined AI and autonomy request is $112 billion. And over the next decade, G7 governments are expected to make $8 trillion of additional investment on top of the prior trends. Second, redesigned global trade flows. The global economy is undergoing equally significant change. Regional conflicts and increased great power competition mean that global trade requires faster cargo processing at the same time as more precise risk assessment. To keep goods moving securely and at pace. Global trade and goods reached $26 trillion in 2025. Growing 7% year over year. Third, demand for secure international travel. Global passenger travel is also on the rise. In 2025, international air traffic grew by 7.1%. IATA's forecast show increased growth in international air traffic in 2026, as well. US Customs and Border Protection processes about 1 million individuals entering the country daily at air, land, and seaports of entry. Substantial share of these travelers move through airports. And our biometric solutions are deployed across more than 24 major US airports. The global aviation security market is estimated to be more than $17 billion in 2026, and is predicted to reach $27 billion by 2031. Finally, pressure on the security apparatus. The message from security professionals in Washington and other global capitals is that agencies responsible for protecting people are deeply concerned about the diversity and pace of the threats facing us. This includes asymmetric technology driven threats. there is mounting evidence that state and nonstate actors are increasingly using generative AI tools, and are able to plan and execute attacks with far fewer resources, far less time, and fewer guardrails. For example, the challenges associated with detecting and intercepting drones involved in cross border smuggling operations or potentially threatening event venues and critical infrastructure, increasing cybersecurity vulnerabilities across the economy, and a digital information ecosystem flooded with disinformation are high on the agendas of policymakers and appropriators. Big Bear customers understand that many of our people came from the security community. Helped build the technology it depends on, and understand the nature of the changing threat landscape. Indeed, our executives, technology, and combined experience are respected internationally by government and commercial customers in each of these areas. While the underlying trends present significant concern, they also present a galvanizing opportunity for the private sector to help governments and critical infrastructure operators to outpace the threats. This is what Big Bear was built for. Our full focus is on delivering enduring strategic advantage for the United States, its allies, and critical industries. Our strategy to build, deploy, and acquire catalytic technology for operators in national security and trade and travel is the right strategy at the right time. The financial opportunity for our business is clear. Our leadership, organization, and resources are fully focused on capturing and delivering value, and it is an exciting time to be deploying AI in our markets. My continued thanks to our team for your efforts and to our shareholders for supporting us. Look forward to talking with you again at our next earnings call, where we will cover the full year performance for 2026 and chart our path to sustained growth in 2027 and beyond. Thank you. Operator: This does conclude today's teleconference. Thank you for your participation, and you may disconnect your lines at this time. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BigBear.ai (BBAI) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Revenue growth of 31% was substantially driven by the Big Bear generative AI platform, which also supported a significant 878 basis point expansion in gross margins. - Management positions the company specifically in the applied AI and tools layers of the value chain, avoiding the capital-intensive infrastructure and foundation model development risks. - The company utilizes a model-agnostic platform strategy, allowing for the integration of third-party AI advances alongside proprietary specialized capabilities without dependency on a single provider. - Operational success is attributed to combining deep mission expertise with a security-cleared workforce, which management believes creates a high barrier to entry for new competitors. - Recent contract wins totaling over $225 million in value, including significant recompetes for Homeland Security, demonstrate the company's ability to defend its core business while diversifying its customer base. - The acquisition of Ask Sage has been a primary catalyst for expanding the customer base into new national security agencies, including the FBI, Coast Guard, and Department of Energy. - Full-year 2026 revenue guidance was raised to a range of $150 million to $165 million, marking the first such increase in company history based on accelerated organic growth trends. - Management is actively hunting for M&A targets that offer either rapid deployment of cutting-edge capabilities or the potential for increased market penetration and scale. - The company expects to be debt-free by the start of 2027 following the maturity of $17 million in convertible debt in December 2026, providing maximum flexibility for strategic execution. - The 2027 outlook is supported by macro tailwinds in defense modernization, including a projected $112 billion U.S. defense budget request for AI and autonomy. - Strategic focus remains on delivering AI solutions for high-consequence environments where state and non-state actors are increasingly utilizing generative AI for asymmetric threats. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - A $76.7 million noncash goodwill impairment charge was recorded in the third quarter, serving as the primary driver for the reported net loss. - The company maintained a strong liquidity position with almost $400 million in cash and investments to support future growth and M&A activity. - Management noted a simplified and more targeted go-to-market structure implemented in May 2026 is now resulting in more consistent execution.

This article first appeared on GuruFocus. Release Date: October 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Revenue grew 31% year-over-year, marking the third consecutive quarter of growth, and full-year 2026 revenue guidance was raised to $150-$165 million, representing 23% growth at the midpoint. - BigBear.ai Holdings Inc (NYSE:BBAI) won over 25 new contracts since Q2, representing more than $225 million in contract value, including significant re-competes with the Department of Homeland Security and classified national security awards. - Gross margins improved by 878 basis points year-over-year to 31.2%, driven by the generative AI platform acquired from SAGE in December 2025. - The company maintains a strong balance sheet with nearly $400 million in cash and investments, and expects to be debt-free by the end of 2026 after retiring $17 million in convertible debt. - Backlog increased 22% sequentially to $330 million, reflecting new wins and successful recompetes, providing visibility into future revenue. - BigBear.ai Holdings Inc (NYSE:BBAI) reported a net loss of $91.9 million, or $0.19 per share, primarily due to a non-cash goodwill impairment charge of $76.7 million, compared to net income of $2.5 million in the prior-year period. - Adjusted EBITDA remained negative at $9.1 million for the quarter, indicating ongoing operational losses despite revenue growth. - The company's growth is substantially driven by the generative AI platform acquired from SAGE, raising concerns about the sustainability of organic growth. - BigBear.ai Holdings Inc (NYSE:BBAI) operates in a highly competitive AI landscape, focusing on layers 4 and 5 of the value chain, where it faces competition from larger, well-capitalized players. - The company's revenue guidance midpoint of $157.5 million implies a significant portion of expected Q4 revenue, creating execution risk to meet full-year targets. - Warning! GuruFocus has detected 3 Warning Signs with BBAI. - Is BBAI fairly valued? Test your thesis with our free DCF calculator. Q: What drove BigBear.ai's revenue growth in Q3 2026, and what is the updated full-year guidance? A: CFO Sean Ricker reported Q3 2026 revenue of $43.6 million, up 31% year-over-year, driven by improved performance across the business and substantially by the generative AI platform acquired from SAGE in December 2025. Management raised full-year 2026 revenue guidance to $150 million to $165 million, which at the midpoint would represent 23% growth over 2025. Q: How did gross margins and profitability trend this quarter? A: CFO Sean Ricker said gross margins rose to 31.2%, an increase of 878 basis points versus Q3 2025, supported particularly by the generative AI platform. Adjusted EBITDA improved to negative $9.1 million from negative $9.4 million a year earlier, while the net loss of $91.9 million, or $0.19 per share, was primarily driven by a non-cash goodwill impairment charge of $76.7 million. Q: What is the status of BigBear.ai's balance sheet and debt? A: CFO Sean Ricker said the company ended Q3 with almost $400 million in cash and investments and about $17 million of convertible debt outstanding that matures in December 2026. He expects BigBear.ai to enter 2027 debt-free with maximum flexibility to execute its strategy. Q: How did backlog perform, and what does it signal about future revenue? A: CFO Sean Ricker reported backlog of $330 million at the end of Q3, up 22% from the prior quarter, driven by new wins and successful recompetes. He noted quarter-over-quarter revenue growth accelerated from 6.7% in Q2 to 18.6% in Q3, reinforcing confidence in a stronger revenue trajectory. Q: What contract wins did BigBear.ai announce, and what is their value? A: CEO Kevin McAleenan said the company won and announced more than 25 new contracts since Q2, representing more than $225 million in contract value. Wins included significant recompetes for the Department of Homeland Security, several new mission customers, and classified awards in the national security business; combined with Q2, more than 45 new contract wins were announced. Q: Which new customers adopted BigBear.ai's generative AI platform in Q3? A: CEO Kevin McAleenan said new enterprise customers included the Federal Bureau of Investigation, U.S. Coast Guard, NASA, the Department of Energy, and the Department of Veterans Affairs. The platform provides secure access to the latest generative AI models and agentic tools, including in disconnected and air-gapped environments. Q: What is BigBear.ai's position in the AI value chain, and how does it avoid capital-intensive exposure? A: CEO Kevin McAleenan described a five-layer AI value chain and said BigBear.ai operates primarily in layers four and fivetools and enterprise AI platforms, and AI applications and solutions. He emphasized the company does not need to finance data center build-outs or general-purpose foundation models, pursuing growth through a more targeted, less capital-intensive, model-agnostic model. Q: How is the company expanding into critical infrastructure and healthcare? A: CEO Kevin McAleenan said work supporting critical national infrastructure, often using digital twin modeling and simulation tools, is growing well, with new customers in healthcare. BigBear.ai secured a two-year renewal with Children's Minnesota for its Future Flow Rx digital twin and predictive analytics solution, which helps hospital leaders anticipate patient flow and optimize capacity and resources. Q: What macro tailwinds does management see supporting growth in 2027? A: CEO Kevin McAleenan cited four trend lines: defense modernization, with a combined AI and autonomy request of $112 billion in the 2027 U.S. defense budget; redesigned global trade flows, with global goods trade reaching $26 trillion in 2025; rising demand for secure international travel, with the global aviation security market estimated at more than $17 billion in 2026; and mounting pressure on the security apparatus from asymmetric, technology-driven threats. Q: What are management's top priorities for the remainder of 2026? A: CEO Kevin McAleenan said his top two priorities are delivering top-line revenue growth and pursuing M&A targets with clear potential for either rapid deployment of cutting-edge capabilities or increased market penetration and scale. He said the company intends to finish the fiscal year strong and is in a solid position to grow in 2027. Q: What drove the large net loss this quarter despite revenue growth? A: CFO Sean Ricker attributed the net loss of $91.9 million, or $0.19 per share, primarily to a non-cash goodwill impairment charge of $76.7 million, or $0.16 per share, recorded in Q3 2026. This compared with net income of $2.5 million in the prior-year period, while adjusted EBITDA showed modest improvement year-over-year. Q: How did BigBear.ai strengthen its homeland and border security business? A: CEO Kevin McAleenan said the company secured two substantial subcontracts centered on homeland and border securityone on SAIC's team and one partnering with UNISONboth extending long-standing support for U.S. Customs and Border Protection's Targeting and Systems Program Directorate. Under SAIC's newly awarded five-year recompete task order, BigBear.ai will provide integrated AI and analytics to optimize critical border security systems. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- 31% year over year revenue growth to $43.6 million; third straight quarter of organic growth - Increases FY 2026 revenue guidance range to $150 million - $165 million - >25 new contract wins since second quarter 2026, worth more than $225 million in contract value* - 878 basis point gross margin expansion, to 31.2% year over year - Backlog grew 22% since second quarter 2026 to $330 million, including wins executed through September 30, 2026 MCLEAN, Va., October 27, 2026--(BUSINESS WIRE)--BigBear.ai Holdings, Inc. (NYSE: BBAI) ("BigBear.ai" or the "Company"), a specialized security & defense technology company providing mission-ready AI, today reported financial results for the third quarter of 2026. A new investor presentation is also available on the Investor Relations section of the Company's website. The earnings call is scheduled for 4:30 p.m. ET today. Participation details are included in this release. "We're raising our full-year revenue guidance after another strong quarter of revenue growth, a series of contract wins, and improved margins," said Kevin McAleenan, CEO of BigBear.ai. "We won major recompetes. We won more than 25 new contracts with customers including the FBI, the U.S. Coast Guard, the Department of Energy, and classified awards. Just as important, we achieved the wins while growing margins and keeping our strong cash position. Our strategy remains centered on applied AI built by operators, for operators who face the toughest missions. Today's results are further proof that our customers know mission impact when they see it, and they trust us to deliver. We believe that puts us in a strong position to grow in 2027." Sean Ricker, CFO of BigBear.ai, added, "Revenue grew again in the third quarter, our third straight quarter of organic growth since the end of last year. AI adoption in our markets is still in its early stages, and our recent wins show strong and growing demand." Third Quarter 2026 Financial Highlights $ thousands (unaudited) | Three Months Ended September 30, | 2026 | | | 2025 | | Change Revenues | $ | 43,581 | | $ | 33,143 | | $ | 10,438 | Gross margin | | 31.2 | % | | 22.4 | % | 878 bps Selling, general and administrative | | 31,308 | | | 25,255 | | | 6,053 | Net (loss) income | | (91,854 | ) | | 2,521 | | | (94,375 | ) Non-GAAP Adjusted EBITDA* | | (9,080 | ) | | (9,401 | ) | | 321 | - Revenue: increased 31% to $43.6 million due to improved revenue performance across the business, and substantially driven by our BigBear Generative AI Platform, which was acquired as Ask Sage in December 2025. - Gross margin: 31.2%, up from 22.4% in the third quarter of 2025 particularly supported by the results of our Generative AI Platform. - Selling, general and administrative: increased $6.1 million to $31.3 million. This is primarily driven by increased intangible asset amortization of $2.4 million related to the Ask Sage acquisition, increased labor spend of $2.5 million driven by increased headcount, and increased sales and marketing spend of $1.4 million. - Net (loss) income: $(91.9) million, compared to $2.5 million for the third quarter of 2025, primarily driven by a non-cash goodwill impairment charge of $76.7 million. Other drivers include a decrease in the changes in the fair value of derivatives of $21.9 million, partially offset by an increase in gross margin of $6.2 million and a decrease of interest expense of $4.3 million. - Non-GAAP Adjusted EBITDA: Improved $0.3 million year-over-year to $(9.1) million. *EBITDA, Adjusted EBITDA, and Contract Value are non-GAAP financial measures. See the "Non-GAAP Financial Measures" section in this press release for additional information and reconciliations. Financial Outlook For the year-ended December 31, 2026, the Company now projects: - Revenue between $150 million to $165 million, an increase of 5% from the previous guidance range midpoint. For more information, see the "Forward-Looking Statements" section in this release. Earnings Call Information BigBear.ai will webcast live the earnings results conference call (listen-only mode) at 4:30 pm ET today, Tuesday, October 27, 2026, on the BigBear.ai Investor Relations website at https://ir.bigbear.ai/. The accompanying presentation slides and relevant financial charts are also available at https://ir.bigbear.ai/. Summary of Results for the Third Quarter EndedSeptember 30, 2026 and September 30, 2025(Unaudited) $ thousands (expect per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | 2026 | | | 2025 | | | 2026 | | | 2025 | Revenues | $ | 43,581 | | $ | 33,143 | | $ | 114,765 | | $ | 100,372 | Cost of revenues | | 29,987 | | | 25,714 | | | 77,399 | | | 77,442 | Gross margin | | 13,594 | | | 7,429 | | | 37,366 | | | 22,930 | Operating expenses: | | | Selling, general and administrative | | 31,308 | | | 25,255 | | | 92,381 | | | 69,474 | Research and development | | 5,385 | | | 3,375 | | | 18,480 | | | 11,934 | Restructuring charges | | 64 | | | 660 | | | 448 | | | 4,257 | Transaction expenses | | 59 | | | — | | | 2,092 | | | — | Goodwill impairment | | 76,737 | | | — | | | 76,737 | | | 70,636 | Operating loss | | (99,959 | ) | | (21,861 | ) | | (152,772 | ) | | (133,371 | ) Interest expense | | 307 | | | 4,604 | | | 931 | | | 14,139 | Interest income | | (3,821 | ) | | (4,306 | ) | | (11,423 | ) | | (6,566 | ) Net (decrease) increase in fair value of derivatives | | (4,228 | ) | | (26,125 | ) | | 16,368 | | | 142,962 | Loss on extinguishment of debt | | — | | | — | | | 15,826 | | | 2,577 | Other expense, net | | 204 | | | 1,428 | | | 440 | | | 1,545 | (Loss) income before taxes | | (92,421 | ) | | 2,538 | | | (174,914 | ) | | (288,028 | ) Income tax (benefit) expense | | (567 | ) | | 17 | | | (548 | ) | | 56 | Net (loss) income | $ | (91,854 | ) | $ | 2,521 | | $ | (174,366 | ) | $ | (288,084 | ) | | | | Basic net (loss) income per share | $ | (0.19 | ) | $ | 0.01 | | $ | (0.37 | ) | $ | (0.87 | ) Diluted net loss per share | $ | (0.19 | ) | $ | (0.03 | ) | $ | (0.37 | ) | $ | (0.87 | ) | | | | Weighted-average shares outstanding: | | | | Basic | | 480,324,180 | | | 396,589,354 | | | 477,522,574 | | | 331,973,873 | Diluted | | 480,324,180 | | | 448,158,249 | | | 477,522,574 | | | 331,973,873 | Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025 (Unaudited) $ in thousands (except per share amounts) | September 30,2026 | December 31,2025 Assets Current assets: Cash and cash equivalents | $ | 77,112 | | $ | 87,126 | Restricted cash | | 1,687 | | | 5,521 | Available for sale investments | | 208,678 | | | 200,461 | Accounts receivable, less allowance for credit losses | | 40,471 | | | 22,703 | Contract assets | | 1,257 | | | 218 | Prepaid expenses and other current assets | | 21,298 | | | 14,514 | Total current assets | | 350,503 | | | 330,543 | Non-current assets: Property and equipment, net | | 1,923 | | | 1,562 | Goodwill | | 161,665 | | | 241,100 | Intangible assets, net | | 124,391 | | | 139,470 | Available for sale investments | | 113,185 | | | 173,949 | Right-of-use assets | | 5,413 | | | 7,063 | Other non-current assets | | 902 | | | 860 | Total assets | $ | 757,982 | | $ | 894,547 | Liabilities and stockholders' equity Current liabilities: Accounts payable | $ | 8,224 | | $ | 6,088 | Current portion of long-term debt, net | | 16,685 | | | 16,560 | Accrued liabilities | | 16,893 | | | 19,649 | Contract liabilities | | 21,232 | | | 14,756 | Current portion of long-term lease liability | | 706 | | | 1,095 | Derivative liabilities | | 6,227 | | | 116,906 | Other current liabilities | | 1,253 | | | 10,466 | Total current liabilities | | 71,220 | | | 185,520 | Non-current liabilities: Long-term debt, net | | — | | | 90,484 | Long-term lease liability | | 5,121 | | | 6,673 | Total liabilities | | 76,341 | | | 282,677 | Stockholders' equity Common stock, par value $0.0001; 1,000,000,000 shares authorized and | | 480,428,208 shares issued and outstanding at September 30, 2026 and | | 500,000,000 shares authorized and 436,955,655 shares issued and outstanding | | at December 31, 2025 | | 49 | | | 46 | Additional paid-in capital | | 1,723,521 | | | 1,534,792 | Treasury stock, at cost; zero shares at September 30, 2026 and 9,952,803 shares at December 31, 2025 | | — | | | (57,350 | ) Accumulated deficit | | (1,039,921 | ) | | (865,555 | ) Accumulated other comprehensive loss | | (2,008 | ) | | (63 | ) Total stockholders' equity | | 681,641 | | | 611,870 | Total liabilities and stockholders' equity | $ | 757,982 | | $ | 894,547 | Consolidated Statements of Cash Flows for the Third Quarter Ended September 30, 2026 and September 30, 2025(Unaudited) | | $ in thousands | Three Months Ended September 30, | Nine Months Ended September 30, | 2026 | | | 2025 | | | 2026 | | | 2025 | Cash flows from operating activities: | | | Net (loss) income | $ | (91,854 | ) | $ | 2,521 | | $ | (174,366 | ) | $ | (288,084 | ) Adjustments to reconcile net (loss) income to net cash used in operating activities | | | Depreciation and amortization expense | | 6,632 | | | 4,127 | | | 20,519 | | | 11,048 | Amortization of debt discount and issuance costs | | 43 | | | 2,159 | | | 125 | | | 6,949 | Accretion of discount on investments in debt securities | | (179 | ) | | (125 | ) | | (817 | ) | | (125 | ) Equity-based compensation expense | | 4,624 | | | 5,321 | | | 12,790 | | | 17,040 | Goodwill impairment | | 76,737 | | | — | | | 76,737 | | | 70,636 | Non-cash lease expense | | 244 | | | 1,330 | | | 673 | | | 1,954 | Provision for doubtful accounts | | — | | | — | | | 42 | | | 351 | Loss on extinguishment of debt | | — | | | — | | | 15,826 | | | 2,577 | (Decrease) increase in fair value of derivatives | | (4,228 | ) | | (26,125 | ) | | 16,368 | | | 142,962 | Changes in assets and liabilities: | | | (Increase) decrease in accounts receivable | | (9,496 | ) | | 3,972 | | | (18,364 | ) | | 14,239 | (Increase) in contract assets | | (1,257 | ) | | (1,479 | ) | | (1,039 | ) | | (1,285 | ) (Increase) in prepaid expenses and other assets | | (434 | ) | | (2,546 | ) | | (6,437 | ) | | (3,138 | ) (Decrease) increase in accounts payable | | (2,998 | ) | | 2,150 | | | 2,004 | | | (2,889 | ) Increase in accrued expenses | | 1,285 | | | 1,749 | | | 701 | | | 6,514 | Increase (decrease) in contract liabilities | | 11,052 | | | (959 | ) | | 6,510 | | | 966 | Increase (decrease) in other liabilities | | 279 | | | (1,680 | ) | | (1,030 | ) | | 168 | Net cash used in operating activities | | (9,550 | ) | | (9,585 | ) | | (49,758 | ) | | (20,117 | ) Cash flows from investing activities: | | | Purchases of investments in debt securities | | (61,639 | ) | | (258,739 | ) | | (140,625 | ) | | (258,739 | ) Proceeds from maturities and sales of investments in debt securities | | 112,412 | | | — | | | 191,898 | | | — | Acquisition of businesses, net of cash acquired | | — | | | — | | | (10,183 | ) | | — | Purchases of property and equipment | | (244 | ) | | (188 | ) | | (879 | ) | | (273 | ) Capitalized software development costs | | — | | | (1,142 | ) | | — | | | (3,841 | ) Net cash provided by (used in) investing activities | | 50,529 | | | (260,069 | ) | | 40,211 | | | (262,853 | ) Cash flows from financing activities: | | | Proceeds from issuance of shares for exercised RDO and PIPE warrants | | — | | | — | | | — | | | 64,673 | Payment of Private Placement and Registered Direct Offering transaction costs | | — | | | — | | | — | | | (551 | ) Proceeds from at-the-market offering | | — | | | 337,073 | | | — | | | 637,073 | Payment of transaction costs for at-the-market offering | | — | | | (3,034 | ) | | — | | | (8,284 | ) Repayment of short-term borrowings | | — | | | (367 | ) | | — | | | (818 | ) Payment of debt issuance costs to third parties | | — | | | — | | | — | | | (4,679 | ) Payment of deferred purchase consideration | | — | | | — | | | (4,523 | ) | | — | Proceeds from exercise of options | | — | | | 1,971 | | | 80 | | | 3,604 | Issuance of common stock upon ESPP purchase | | — | | | — | | | 1,590 | | | 1,069 | Payments of tax withholding from the issuance of common stock | | (282 | ) | | (358 | ) | | (1,629 | ) | | (2,037 | ) Net cash (used in) provided by financing activities | | (282 | ) | | 335,285 | | | (4,482 | ) | | 690,050 | Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash | | 37 | | | 104 | | | 181 | | | (641 | ) Net increase (decrease) in cash, cash equivalents, and restricted cash | | 40,734 | | | 65,735 | | | (13,848 | ) | | 406,439 | Cash, cash equivalents, and restricted cash at the beginning of the period | | 38,065 | | | 390,845 | | | 92,647 | | | 50,141 | Cash, cash equivalents, and restricted cash at the end of the period | $ | 78,799 | | $ | 456,580 | | $ | 78,799 | | $ | 456,580 | EBITDA* and Adjusted EBITDA* for the Third Quarter September 30, 2026 and September 30, 2025 (Unaudited) | | $ thousands | Three Months Ended September 30, | Nine Months Ended September 30, | 2026 | | | 2025 | | | 2026 | | | 2025 | Net (loss) income | $ | (91,854 | ) | $ | 2,521 | | $ | (174,366 | ) | $ | (288,084 | ) Interest expense | | 307 | | | 4,604 | | | 931 | | | 14,139 | Interest income | | (3,821 | ) | | (4,306 | ) | | (11,423 | ) | | (6,566 | ) Income tax (benefit) expense | | (567 | ) | | 17 | | | (548 | ) | | 56 | Depreciation and amortization | | 6,632 | | | 4,127 | | | 20,519 | | | 11,048 | EBITDA | | (89,303 | ) | | 6,963 | | | (164,887 | ) | | (269,407 | ) Adjustments: | | Equity-based compensation | | 4,624 | | | 5,321 | | | 12,790 | | | 17,040 | Employer payroll taxes related to equity-based compensation(1) | | 110 | | | 260 | | | 2,134 | | | 1,886 | Net (decrease) increase in fair value of derivatives(2) | | (4,228 | ) | | (26,125 | ) | | 16,368 | | | 142,962 | Restructuring charges(3) | | 64 | | | 660 | | | 448 | | | 4,257 | Non-recurring strategic initiatives(4) | | 224 | | | 3,520 | | | 4,444 | | | 5,131 | Non-recurring litigation(5) | | 525 | | | — | | | 1,194 | | | 30 | Transaction expenses(6) | | 59 | | | — | | | 2,092 | | | — | Non-recurring integration costs(7) | | 2,108 | | | — | | | 2,266 | | | — | Goodwill impairment(8) | | 76,737 | | | — | | | 76,737 | | | 70,636 | Loss on extinguishment of debt(9) | | — | | | — | | | 15,826 | | | 2,577 | Adjusted EBITDA | $ | (9,080 | ) | $ | (9,401 | ) | $ | (30,588 | ) | $ | (24,888 | ) (1) | Includes employer payroll taxes due upon the vesting of equity awards granted to employees. (2) | The change in fair value of derivatives during the three months ended September 30, 2026 consists of net gains related to the fair market value adjustments on the 2025 RDO Warrants, IPO private warrants, and 2026 Notes Conversion Option. The change in fair value of derivatives during the nine months ended September 30, 2026 primarily relates to a $28.3 million mark-to-market loss for the 2029 Notes Conversion Options immediately prior to conversion. This was offset by net gains related to the fair market value adjustments on the 2025 RDO Warrants, IPO private warrants, and 2026 Notes Conversion Option of $11.9 million.The change in fair value of derivatives during the three months ended September 30, 2025 relates to the remeasurement of the 2025 RDO Warrants, IPO private warrants, and the 2026 and 2029 Notes Conversion Option derivative liabilities. The change during the nine months ended September 30, 2025, includes a $14.0 million loss recorded upon the exercise of the 2024 RDO and 2024 PIPE Warrants and issuance of the 2025 RDO Warrants in 2025 in connection with the warrant exercise agreements entered into on February 5, 2025, a $59.9 million mark-to market loss for the 2029 Notes Conversion Options immediately prior to the partial conversion, and net losses related to the fair market value adjustments on the 2025 RDO Warrants, IPO private warrants, and the 2026 and 2029 Notes Conversion Options of $69.1 million. (3) | Includes employee separation costs which are associated with strategic reviews of the Company's capacity and future projections to better align the organization and cost structure and improve the affordability of its products and services. (4) | Non-recurring professional fees incurred in connection with discrete, non-recurring strategic initiatives, including business transformation and strategy realignment consulting services which management does not consider part of the Company's ongoing operating expenses. (5) | Non-recurring litigation consists primarily of legal settlements and related fees for specific proceedings that we have determined arise outside of the ordinary course of business based on the following considerations which we assess regularly: (1) the frequency of similar cases that have been brought to date, or are expected to be brought within two years; (2) the complexity of the case; (3) the nature of the remedy(ies) sought, including the size of any monetary damages sought; (4) offensive versus defensive posture of us; (5) the counterparty involved; and (6) our overall litigation strategy. (6) | Transaction expenses during the nine months ended September 30, 2026 consist primarily of diligence, legal and other related expenses incurred associated with the Ask Sage and CargoSeer acquisitions, as well as costs associated with evaluating other acquisition opportunities. (7) | Non-recurring internal integration costs related to the Ask Sage acquisition. (8) | During three and nine months ended September 30, 2026, the company recognized a non-cash goodwill impairment charge primarily driven by a change in forecast during the third quarter of 2026.During the nine months ended September 30, 2025, the company recognized a non-cash goodwill impairment charge primarily driven by a change in forecast during the second quarter of 2025. (9) | Loss on extinguishment of debt is related to voluntary conversions of the 2029 Notes to common stock and the related extinguishment of unamortized debt discount and debt costs. *EBITDA and Adjusted EBITDA are non-GAAP financial measures. See the "Non-GAAP Financial Measures" section in this press release for additional information and reconciliations. 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) income before interest expense, interest income, income tax (benefit) expense 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 (decrease) increase in fair value of derivatives, restructuring charges, non-recurring strategic initiatives, non-recurring litigation, transaction expenses, non-recurring integration costs, 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 (loss) income. Total contract value ("TCV") represents the total potential value of the awards, including unexercised options and ceiling values, and does not necessarily reflect funded amounts. For U.S. government contracts, TCV generally exceeds the amount currently funded, because government customers typically fund contracts incrementally as appropriations become available, and option periods are exercisable at the government's sole discretion. In addition, U.S. government contracts are generally subject to termination for the convenience of the government, as well as reductions in scope, funding delays and other modifications. As a result, the amount and timing of revenue BigBear.ai ultimately realizes from these awards may differ materially from the TCV presented. For additional information, including BigBear.ai's definition of backlog, see its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. As of September 30, 2026, BigBear.ai's total backlog was approximately $330 million, of which approximately 23% was funded. About BigBear.ai BigBear.ai is a specialized security and defense technology company providing mission-ready AI. Focused on National Security and Trade & Travel, we build and deploy AI-powered technology, solutions, and services to deliver enduring strategic advantage for the United States, its allies and partners, and critical industries. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20261027936657/en/ Contacts Investor Contact [email protected] Media Contact [email protected]

- Interested in BigBear.ai Holdings, Inc.? Here are five stocks we like better. - BigBear.ai reported strong operational growth: Third-quarter revenue rose 31% year over year to $43.6 million, while gross margin expanded to 31.2%, helped by its Ask Sage generative AI platform. - The company raised its full-year outlook to $150 million–$165 million in revenue as backlog reached $330 million and contract wins accelerated across national security, border security and enterprise markets. - Despite improved operations, BigBear.ai posted a $91.9 million net loss, primarily due to a $76.7 million non-cash goodwill impairment charge; management said it expects to be debt-free by 2027 and is pursuing further growth and acquisitions. - MarketBeat Week in Review – 10/05 - 10/09 BigBear.ai (NYSE:BBAI) reported third-quarter revenue growth of 31% year over year and raised its full-year 2026 revenue outlook, citing momentum in generative AI, national security and border-security contracts. Revenue for the quarter totaled $43.6 million, while gross margin expanded to 31.2%, up 878 basis points from the same period a year earlier. Chief Financial Officer Sean Ricker said the company's generative AI platform, acquired as Ask Sage in December 2025, substantially contributed to revenue growth and margin expansion. → Can Planet Fitness Get Its Growth Back in Shape? - BigBear.ai Is Heavily Shorted—and Its Fundamentals Are Starting to Change "Our results were strong operationally and financially this quarter," Ricker said. The company reported adjusted EBITDA of negative $9.1 million, compared with negative $9.4 million in the comparable quarter. BigBear.ai increased its full-year revenue guidance to a range of $150 million to $165 million. At the midpoint, the outlook would represent 23% growth from 2025, according to Chief Executive Officer Kevin McAleenan. → Consumer Staples Are Up 12% This Year—These 3 Beverage Stocks Are Leading the Way - The Market May Be Missing What's Changing at BigBear AI Ricker said the new range represented a 5% increase at the midpoint from the company's earlier guidance. He also pointed to accelerating sequential growth, with revenue increasing 6.7% in the second quarter and 18.6% in the third quarter. The company ended the quarter with $330 million in backlog, up 22% from the end of the prior quarter. McAleenan said BigBear.ai had announced more than 25 contract wins since the second quarter, representing more than $225 million in contract value. Across the second and third quarters, the company announced more than 45 new wins, he said. → Newmont's Record Quarter Shows Why Gold's Floor Is the Real Story BigBear.ai entered the fourth quarter with nearly $400 million in cash and investments. Ricker said approximately $17 million of convertible debt is scheduled to mature in December and that the company expects to begin 2027 debt-free. Despite the operational gains, BigBear.ai recorded a net loss of $91.9 million, or $0.19 per share, compared with net income of $2.5 million in the prior-year quarter. The company said the result was primarily driven by a non-cash goodwill impairment charge of $76.7 million, or $0.16 per share. McAleenan said the company's near-term priorities remain revenue growth and pursuing merger-and-acquisition opportunities that could enable rapid deployment of technology or expand BigBear.ai's market reach and scale. The company highlighted contract wins involving homeland and border security, including two subcontracts supporting U.S. Customs and Border Protection's Targeting and Analysis Systems Program Directorate. One subcontract is on SAIC's team, while the other involves Unissant. Under SAIC's five-year recompete task order, BigBear.ai is to provide AI and analytics supporting systems used to assess risk associated with travelers and cargo entering the U.S., McAleenan said. Under Unissant's five-year contract, the company will continue software development work for CBP vetting workflow operations and analysis. BigBear.ai also cited new enterprise customers for its generative AI platform, including the Federal Bureau of Investigation, U.S. Coast Guard, NASA, Department of Energy and Department of Veterans Affairs. McAleenan said the platform provides agencies with secure access to generative AI models and agentic tools, including in disconnected and air-gapped environments. Outside government markets, the company said it renewed a two-year agreement with Children's Minnesota, a pediatric health system. The agreement covers the use of BigBear.ai's digital-twin and predictive-analytics technology to help hospital leaders anticipate patient flow, assess operational challenges, and optimize capacity and resources. McAleenan characterized BigBear.ai as an applied AI company focused primarily on enterprise AI platforms and mission-specific applications, rather than AI infrastructure or general-purpose foundation models. He said the company's model-agnostic approach enables it to incorporate developments from third-party AI providers while also building specialized capabilities for customer requirements. The CEO identified defense modernization, changing global trade flows, rising international travel and pressure on security agencies as longer-term market tailwinds. He said the company expects these trends to support demand for AI deployments in national security, travel, trade and critical infrastructure. "We approach the end of the year with real confidence, thanks to our underlying financial strength and win momentum," McAleenan said, adding that the company sees itself positioned for growth in 2027. 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. 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 Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

BigBear.ai Holdings, Inc. BBAI is scheduled to report its third-quarter 2026 results on Oct. 27, after the closing bell. In the last reported quarter, the company reported a loss per share that was narrower than the Zacks Consensus Estimate of loss per share by 20% and down from a loss of six cents per share reported a year ago. Revenues topped the consensus mark by 1% and grew 13% from the year-ago quarter. This Artificial Intelligence (AI) provider surpassed earnings estimates in two of the trailing four quarters, missed on one occasion and met on the other, with an average surprise of 5.8%. The Zacks Consensus Estimate for the third-quarter bottom line has broadened to a loss of six cents from five cents over the past 30 days. However, the estimated figure indicates a narrower loss from the year-ago reported loss of seven cents per share by 14.3%. The consensus mark for revenues is pegged at $38.9 million, suggesting 17.5% year-over-year growth. BigBear.ai Holdings, Inc. price-eps-surprise | BigBear.ai Holdings, Inc. Quote The top line of BigBear.ai is expected to have increased year over year because of the strong flow of contracts as the demand for specialized AI solutions is growing across the market. BBAI's portfolio of AI solutions, including Ask Sage, CargoSeer and ConductorOS, is likely to have been expanding AI opportunities across national security, customs and border operations, and autonomous systems. These developments could create opportunities for additional deployments and repeatable software sales, while extending the company's reach across defense, government and trade-related markets. New wins from existing and new customers in the United States and international markets provide opportunities to convert demand into future revenues. Moreover, the company's strategic deployment of product enhancements and capabilities is likely to have increased its ability to drive mission performance across cargo inspection, generative AI and drone swarm orchestration. Meanwhile, BBAI's bottom line is expected to reflect a narrower loss year over year in the third quarter because of increased volume from Ask Sage's higher-margin GenAI platforms and products, alongside increased top-line leverage. However, rising research and development expenses, along with significant investments in sales, marketing and other initiatives, are expected to have pulled down bottom-line growth in the third quarter. Also, BigBear.ai's reliance on government customers exposes it to changes in federal budgets, procurement priorities, funding delays and contract timing, thus creating revenue generation risks. 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 -9.09%. You can uncover the best stocks before they're reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. Here are some companies in the Zacks Computer and Technology sector, which according to our model, have the right combination of elements to post an earnings beat. Shopify Inc. SHOP has an Earnings ESP of +10.11% and a Zacks Rank of 1 at present. Shopify's earnings beat estimates in two of the trailing four quarters, missed on one occasion and met on the other, with an average surprise of 3.1%. The company's earnings for the third quarter of 2026 are expected to grow 32.4% year over year. NVIDIA Corporation NVDA has an Earnings ESP of +3.46% and a Zacks Rank of 1. NVIDIA's earnings beat estimates in each of the last four quarters, the average surprise being 5.8%. The company's earnings for the third quarter of fiscal 2027 are expected to surge 91.5% year over year. Snowflake Inc. SNOW currently has an Earnings ESP of +7.84% and a Zacks Rank of 2. Snowflake's earnings beat estimates in each of the last four quarters, the average surprise being 22.8%. The company's earnings for the third quarter of fiscal 2027 are expected to increase 71.4% year over year. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cognizant (CTSH) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This information technology consulting and outsourcing firm is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $5.65 billion, up 4.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.38% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Cognizant, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.98%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Cognizant will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Cognizant would post earnings of $1.38 per share when it actually produced earnings of $1.37, delivering a surprise of -0.72%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Cognizant doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. BigBear.ai Holdings, Inc. (BBAI), another stock in the Zacks Computers - IT Services industry, is expected to report loss per share of $0.06 for the quarter ended September 2026. This estimate points to a year-over-year change of +14.3%. Revenues for the quarter are expected to be $38.94 million, up 17.5% from the year-ago quarter. The consensus EPS estimate for BigBear.ai has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -9.09%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that BigBear.ai will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +14.3%. Revenues are expected to be $38.94 million, up 17.5% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For BigBear.ai, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -9.09%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that BigBear.ai will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that BigBear.ai would post a loss of$0.05 per share when it actually produced a loss of -$0.04, delivering a surprise of +20.00%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. BigBear.ai doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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