As Palantir Technologies (PLTR) and BigBear.ai (BBAI) head toward their earnings dates on May 4 and May 5, respectively, investors are searching for a bottom. Both companies have faced a tough 2026 so far, with Palantir down nearly 20% and BigBear.ai sliding more than 31% year-to-date. Despite the sell-off, Wall Street remains surprisingly bullish on the long-term potential of these AI software players, maintaining Moderate Buy ratings on both stocks.
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However, a closer look at the data reveals that analysts clearly favor Palantir as the higher-conviction play. Currently, PLTR offers a higher potential upside of 34.52%, compared to 31.12% for BigBear.ai. More importantly, Palantir carries a superior Smart Score of 4, while BigBear.ai’s Smart Score of 1 suggests it may continue to struggle to outperform the broader market in the near term.
Using TipRanks’ Stock Comparison tool, we stacked PLTR against BBAI across multiple metrics—including analyst sentiment, upside potential, valuation, and earnings momentum—to help investors see which stock looks more attractive ahead of earnings.
What Analysts Expect from Palantir’s Q1 Earnings
Wall Street expects Palantir to report EPS (earnings per share) of $0.28 for Q1 2026, reflecting 115% year-over-year growth. Revenue is projected to rise 74% to $1.54 billion.
Palantir has been seeing strong growth in both its government and commercial businesses, helped by solid demand for its Artificial Intelligence Platform (AIP). As the company heads into its early May earnings report, investors are watching closely to see if this pace can continue, especially as concerns about rising AI competition grow.
These concerns were highlighted by comments from Michael Burry, the “Big Short” investor, who said earlier this month that Anthropic is “eating Palantir’s lunch.” The upcoming results will be an important test of whether Palantir can stay ahead of new rivals while keeping its strong demand in place through 2026.
Is PLTR Stock a Buy Now?
Overall, Wall Street remains moderately bullish on Palantir stock. Ahead of the report, Citi analyst Tyler Radke maintained a Buy rating on Palantir but lowered the price target to $210 from $260, reflecting recent valuation pressure in software stocks. Citi expects Palantir to maintain strong momentum in Q1, supported by major contract renewals with Airbus (AIR) and Stellantis (STLA), and continues to view the company as one of the key beneficiaries of the AI boom.
PLTR stock carries 14 Buys, five Holds, and two Sell ratings from analysts with an average price target of $191.28.
What to Expect from BBAI’s Q1 Earnings
Wall Street expects BBAI to report a loss of $0.08 per share for Q1 FY26 versus a loss of $0.25 per share in the year-ago quarter. Meanwhile, revenue is expected to decline by 3% year-over-year to about $33.60 million.
While the top-line revenue looks like it’s shrinking, investors are focused on the quality of the new business. BigBear.ai has been moving away from lower-margin legacy work and toward high-growth AI software. The key focus for the May 5 report will be the performance of Ask Sage, the GenAI platform BigBear recently acquired, which already has over 100,000 users across 16,000 government teams.
Is BBAI Stock a Good Buy Now?
Just like PLTR, Wall Street remains moderately bullish on BBAI stock. Last month, H.C. Wainwright analyst Scott Buck lowered BBAI’s price target from $8 to $6, while maintaining a Buy rating. Buck noted that the company’s improved balance sheet gives it more flexibility to fund growth, but the target was cut due to lower sales estimates.
BBAI stock carries one Buy and two Hold ratings from analysts, with an average price target of $5.33.
