Is BigBear.ai Stock (BBAI) a Good Buy After the Q2 Setback?
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For context, BigBear.ai delivers AI-powered decision support solutions, mainly serving the U.S. defense, intelligence, and federal government sectors.
BigBear.ai Misses Expectations in Q2
In Q2, the company's revenue fell by 18% year-over-year to $32.5 million, missing analyst projections of $40.59 million. It was primarily due to reduced activity on select U.S. Army programs.
On the earnings side, BigBear.ai reported an adjusted loss of $0.71 per share, marking a steep miss compared to the consensus forecast for a $0.06 loss.
Wall Street Stays Bullish on BBAI
Despite the disappointing results, Wall Street analysts expressed support for BBAI stock, choosing to look past short-term challenges.
Analyst Scott Buck at H.C. Wainwright reiterated his Buy rating but trimmed his price target from $9 to $8. Buck argued that Q2 results weren't surprising given similar delays affecting other defense companies. He expects revenue visibility to improve as the business approaches 2026 and sees BigBear.ai benefiting long-term from the 'One Big Beautiful Bill,' which boosts investment in its core areas. He also highlighted that the company ended Q2 2025 with over $390 million in cash, providing flexibility for reinvestment and acquisitions.
Similarly, five-star-rated analyst Jonathan Ruykhaver of Cantor Fitzgerald maintained a Buy rating and raised his price target to $6 from $5 per share. Ruykhaver pointed to meaningful progress in key areas, including enhancements to core products and improved balance sheet strength. Notably, the company's backlog rose 42.9% year-over-year to $380 million, suggesting healthy demand and improved revenue visibility. Overall, he views the expanding backlog and ongoing strategic initiatives as key factors supporting his Buy rating and a higher price target.
Is BBAI a Good Stock to Buy?
On TipRanks, analysts have a Moderate Buy consensus rating on BBAI stock, based on two Buys and one Hold assigned in the last three months. The average BigBear.ai share price target is $5.75, which implies a downside of 0.17% from current levels.
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