BigBear.ai Holdings (BBAI) stock was down 31% in Tuesday’s pre-market trading session, as the artificial intelligence (AI)-powered data analytics company reported dismal second-quarter results and lowered its full-year revenue guidance, citing “disruptions in federal contracts.” Reacting to the Q2 print, H.C. Wainwright trimmed its price target for BBAI stock to $8 from $9 to reflect a lower 2026 revenue forecast, but retained a Buy rating. Wainwright contends that while BBAI’s Q2 results were disappointing, near-term challenges don’t dampen its longer-term optimism.
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BigBear.ai offers AI-powered decision intelligence solutions for national security, defense, travel and trade, and supply chains.
H.C. Wainwright Stays Bullish on BBAI Stock
H.C. Wainwright analyst Scott Buck noted that BigBear.ai slashed its full-year revenue guidance to the range of $125 million to $140 million, down significantly from the previous range of $160 million to $180 million due to lower Q2 revenue and disruptions in federal contracts, especially in programs supporting the U.S. Army.
Buck contends that while Q2 results were disappointing, they should not come as a surprise, given the performance of peers in the defense space, who have also witnessed program delays. The analyst expects revenue visibility to start improving as the business moves towards 2026. Over the long term, Buck believes that BigBear.ai is well-positioned to benefit from the “One Big Beautiful Bill,” which significantly increases investment in areas aligned with the company’s core competencies.
The analyst also highlighted that BigBear.ai solidified its balance sheet during Q2 2025, ending the quarter with more than $390 million of available cash. Buck expects this capital to be deployed in the coming quarters via reinvestment in the business and complementary mergers and acquisitions. Buck views an improved balance sheet and favorable industry and legislative trends as catalysts for BigBear.ai’s long-term growth. The analyst recommends that investors take advantage of any near-term weakness in BBAI stock, given that he expects operating results and outlook to be notably stronger a year from now.
Is BBAI Stock a Good Buy?
Currently, Wall Street has a Moderate Buy consensus rating on BigBear.ai Holdings stock based on one Buy and one Hold rating. The average BBAI stock price target of $7.50 indicates about 6% upside potential from current levels.
