BigBear.ai Holdings, Inc. provides artificial intelligence-powered decision intelligence solutions for national security, supply chain management, and digital identity markets. Its offerings include supply chain and logistics solutions such as Data Conflation at Scale, Discrete Event Simulation, and Next-Gen Decision Support, as well as cybersecurity solutions like AI-powered binary analysis and vulnerability assessment. The company also provides autonomous systems, AI/ML decision intelligence, AI orchestration, and digital identity services, including the Ask Sage Platform for secure AI deployment. Founded in 1988, it is headquartered in McLean, Virginia.
BigBear.ai Gross Margin Jumps 781 Basis Points as Adjusted EBITDA Loss Widens
BigBear.ai Holdings reported second-quarter 2026 revenue of $36.7 million, up 13% year over year, while gross margin rose 781 basis points to 32.8% on a higher contribution from generative AI platforms and products. The margin gain has not yet carried through to adjusted EBITDA, which was negative $11.6 million versus negative $8.5 million a year earlier, as increased investment in sales, go-to-market capabilities and research and development offset the gross-margin benefit. The company ended the quarter with $410 million in cash and investments to fund that continued spending. BigBear.ai competes with Palantir Technologies and C3.ai in mission-focused and government AI applications, and the balance between revenue growth, gross-margin expansion and operating expenses will determine whether the improving margin profile translates into stronger adjusted EBITDA.
BigBear.ai Posts 13% Revenue Growth as Backlog Hits $270 Million
BigBear.ai Holdings reported second-quarter 2026 revenues of $36.7 million, up 13% year over year, with gross margin expanding 781 basis points to 32.8%. The company won more than 20 new contracts in the quarter, each valued at up to $5 million, and its backlog reached $270 million, up about $22 million from the start of the year, while management maintained its 2026 revenue target of $135-$165 million. BigBear.ai is pushing beyond defense into commercial markets, securing a five-year commercial deployment agreement in El Salvador for its CargoSeer cargo-scanning product after a 12-month pilot, and expanding Ask Sage into disconnected and air-gapped environments while developing ConductorOS to coordinate drones, sensors and autonomous systems from multiple vendors. Profitability remains a challenge, with adjusted EBITDA of negative $11.6 million versus negative $8.5 million a year earlier, reflecting higher spending on sales, go-to-market activities and research and development. The company holds $410 million in cash and investments, and competes with Palantir Technologies, whose second-quarter 2026 revenues jumped 93% to $1.94 billion, and C3.ai, which reported $52.4 million in first-quarter fiscal 2027 revenues.
BigBear.ai Expands AI Deployments, But Growth and Losses Persist
BigBear.ai Holdings reported a 13% year-over-year revenue increase to $36.7 million in the second quarter of 2026, driven by stronger performance from its generative AI platforms, with gross margin soaring to 32.8%, up 781 basis points. The company secured more than 20 contracts during the quarter, with individual values up to $5 million, and backlog reached $270 million, up about $22 million from the start of the year. It also highlighted a five-year CargoSeer deployment agreement in El Salvador following a successful 12-month pilot, potentially providing a template for expansion into other customs markets. However, adjusted EBITDA remained negative at $11.6 million as spending increased on sales, go-to-market initiatives, and R&D, while the company holds $410 million in cash and investments. Shares have plunged 22.2% over the past six months, and the Zacks Consensus Estimate for 2026 loss per share has widened, though it indicates a narrower loss than the year-ago loss of 82 cents per share. BigBear.ai currently carries a Zacks Rank #4 (Sell).
Artificial Intelligence › AI Applications & Copilots ▲Demand
BBAI · Capital · Negative Adjusted EBITDA remained negative at $11.6M as sales, go-to-market, and R&D spending rose, and the 2026 loss estimate widened.
BBAI · Demand · Positive Secured 20+ contracts, $270M backlog, and a five-year CargoSeer deployment agreement in El Salvador.
BigBear.ai Holdings sees changing global trade and mobility patterns as a potential growth engine for its applied AI solutions. The company's CargoSeer platform, which combines X-ray imagery, import-export documents and structured trade data, recently signed a five-year commercial deployment agreement in El Salvador following a successful 12-month pilot, marking its first deployment in Central America. Management said the El Salvador deployment is already attracting interest from customs agencies elsewhere, and the company reaffirmed its 2026 revenue guidance of $135-$165 million. Second-quarter 2026 revenues rose 13% year over year to $36.7 million, gross margin expanded 781 basis points to 32.8%, and backlog increased 9% from 2025-end to $269.6 million. BigBear.ai faces competition from Palantir Technologies and Parsons Corporation in AI-driven trade, border security and supply-chain solutions.
Artificial Intelligence › AI Applications & Copilots ▲Demand
BBAI · Demand · Positive CargoSeer signed a five-year commercial deployment in El Salvador, its first in Central America, and is attracting interest from other customs agencies.
BigBear.ai forecasts $135 million to $165 million in 2026 revenue and accelerates hunt for accretive M&A
BigBear.ai Holdings reaffirmed its full-year 2026 revenue guidance of $135 million to $165 million while reporting second-quarter revenue of $36.7 million, a 13% year-over-year increase driven by its generative AI platforms and products. Gross margin improved to 32.8%, up 781 basis points from the prior year, and the company ended the quarter with $410 million in cash and investments and a backlog of $270 million. CEO Kevin McAleenan said the company won more than 20 new contracts in the quarter and is accelerating its search for accretive M&A targets, calling it a time to be aggressive. The company also fully integrated its recent acquisitions of Ask Sage and CargoSeer, with CargoSeer signing a five-year commercial deployment agreement in El Salvador. Net loss for the quarter was $25.7 million, and adjusted EBITDA was negative $11.6 million, reflecting increased investment in sales and research and development.
C3.ai CEO Tom Siebel Returns Amid Sharp Revenue Decline and Extended Shell Partnership
C3.ai reported a sharp revenue decline in 2026 alongside the temporary step-down and subsequent return of CEO Tom Siebel, while extending its enterprise AI collaboration with Shell. The multi-year extension reinforces C3.ai's relevance in complex industrial AI deployments, showing major customers still commit to its platform even as competition from BigBear.ai intensifies. Siebel's return may help stabilize operations, but the revenue trend remains the key near-term swing factor for the stock's risk-reward. The company's narrative projects $269.8 million revenue and $32.7 million earnings by 2029, requiring 2.5% yearly revenue growth and about a $503 million earnings increase from negative $470.4 million today.
Artificial Intelligence › AI Applications & Copilots Competition
AI · Demand · Negative Sharp revenue decline in 2026 indicates weakening end-customer demand for C3.ai's products.
SHEL.LSE · Demand · Positive Extended enterprise AI collaboration with Shell shows continued commitment to C3.ai's platform, positive for Shell's AI adoption.
BBAI · Competition · Positive Intensifying competition from BigBear.ai is mentioned, implying a potential gain for BigBear.ai.
C3.ai and BigBear.ai quarterly revenue trends show diverging paths
C3.ai and BigBear.ai have reported contrasting quarterly revenue trends, with C3.ai consistently generating higher overall revenue but experiencing a sharp decline in recent quarters, while BigBear.ai has remained more steady. C3.ai's revenue fell from $108.7 million in the quarter ended April 2025 to $51.6 million in the quarter ended April 2026, a drop attributed to the temporary departure of CEO Tom Siebel for health reasons. BigBear.ai's revenue has been more stable, with first-quarter 2026 revenue of $34.4 million representing only a 1% year-over-year decline, and the company forecasting full-year 2026 revenue between $135 million and $165 million. Investors are watching whether C3.ai can recover under Siebel's return and whether the revenue gap between the two companies will continue to narrow.
SoundHound AI favored over BigBear.ai for 2026 AI stock pick
A comparative analysis by The Motley Fool concludes that SoundHound AI is the better artificial intelligence stock to buy in 2026 over BigBear.ai. BigBear.ai, which provides decision intelligence for government and defense, saw fiscal 2025 revenue decline 19.3% to $127.7 million and posted a net loss of $293.9 million, while its first-quarter 2026 sales slipped 1% year-over-year to $34.4 million. SoundHound AI, offering voice AI for automotive and restaurant sectors, grew fiscal 2025 revenue 99.4% to $168.9 million with a net loss of $14 million, and its first-quarter 2026 sales surged 52% to $44.2 million. The author highlights SoundHound's stronger growth trajectory, diversified customer base, and 2026 revenue guidance of $225 million to $260 million as key reasons for the preference, despite risks including acquisition-related litigation and shareholder dilution.
BBAI · Demand · Negative Revenue declined 19.3% in fiscal 2025 and slipped 1% in Q1 2026, indicating weak demand for its decision intelligence services.
SOUN · Demand · Positive Revenue grew 99.4% in fiscal 2025 and surged 52% in Q1 2026, with strong 2026 guidance, reflecting robust demand for voice AI.
BigBear.ai Shareholders Approve Doubling Authorized Shares to 1 Billion
BigBear.ai shareholders voted to amend the company’s Certificate of Incorporation, doubling the number of authorized shares from 500 million to 1 billion. The proposal passed with 89% approval. The company had less than 23 million shares remaining under its prior limit, and at the current share price of $3.53, the old authorization provided only about $81 million in available shares. The expanded authorization gives management flexibility for future acquisitions, though it also raises the prospect of further dilution. BigBear.ai’s outstanding share count has already grown more than tenfold since 2021, while the stock has fallen over 60% since its SPAC merger.
BigBear.ai Stock Could Jump 36% in a Year, Says Wall Street
BigBear.ai Holdings shares have fallen 37% this year, but Wall Street’s 12-month median price target of $5 implies a potential 36% upside. The company’s financial performance is improving in 2026, with first-quarter revenue down just 1% to $34.4 million and gross margin expanding nearly 13 percentage points to 34%, driven by the December 2025 acquisition of Ask Sage. BigBear.ai recorded almost $75 million in new contract wins in the first quarter and maintained its full-year revenue forecast of $135 million to $165 million, which at the midpoint represents a 17% increase. However, analysts project revenue of $159 million next year, suggesting growth could slow to mid-single digits, and the stock trades at 12 times sales, a premium to the Nasdaq Composite’s multiple of 5.4. The expensive valuation and slow growth may continue to weigh on shares, making it too early to bet on a turnaround.
BBAI · Capital · Neutral Wall Street's 36% upside price target is positive, but the article also highlights expensive valuation and slowing growth, making the net impact unclear.
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