U.S.-based AI solutions provider BigBear.ai (BBAI) recently posted its Q2 results, falling short of market expectations. While the setback has sparked investor concerns about the company’s prospects, analysts are looking past the short-term turbulence and focusing on the broader growth potential. As a result, the recent dip could present a buying opportunity for long-term investors, with BBAI stock down more than 17% since the earnings release.
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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
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 $6.67, which implies an upside of nearly 15% from current levels.
