BigBear.ai Holdings (BBAI) stock has rallied 58% year-to-date and jumped by a massive 468% over the past year. The buzz around artificial intelligence (AI) stocks, especially those with exposure to the defense space, is driving BBAI stock higher. BigBear.ai is scheduled to announce its Q2 earnings on August 11. Based on the only analyst rating and price target assigned over the past three months, the Russell 2000 stock has attractive upside potential.
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However, much would depend on the company’s Q2 performance and outlook, which will help investors understand whether BBAI stock justifies its elevated valuation. BigBear.ai offers AI-powered decision intelligence solutions for national security, defense, travel and trade, and supply chains.
Expectations from BBAI’s Q2 Earnings
Wall Street expects BigBear.ai to report a higher loss per share of $0.06 for Q2 2025 compared to $0.05 in the prior-year quarter. Revenue is expected to grow by about 2% year-over-year to $40.59 million.
Several analysts have previously questioned BigBear.ai’s lofty valuation, given the lackluster revenue growth of 5% in Q1 2025. Moreover, Wall Street’s estimates reflect further deceleration in the top line. Unlike BBAI, Palantir Technologies (PLTR), an AI-powered analytics company with defense exposure, has delivered impressive growth rates in recent quarters. PLTR stock has rallied 128% year-to-date.
Investors will pay attention to BigBear.ai’s commentary on its backlog and outlook to assess whether this AI stock warrants a premium valuation or not. The company ended Q1 2025 with a backlog of $385 million. Focus will also be on insights on recently announced deals, including a strategic partnership with Easy Lease PJSC and Vigilix Technology to accelerate the development and deployment of AI-enabled solutions to support the United Arab Emirates’ (UAE) digital transformation.
What Is the Price Target for BBAI Stock?
H.C. Wainwright analyst Scott Buck is the only analyst who has assigned a rating to BigBear.ai Holdings stock. His Buy rating with a price target of $9 for BBAI stock indicates about 28% upside potential from current levels.
