Is BigBear.ai Building the Future of Autonomous Defense?

BigBear.ai Holdings, Inc. BBAI is emerging as a notable name in the defense technology space, leveraging Artificial Intelligence (AI), machine learning and data analytics. It is mainly intended to enhance autonomous and decision-support capabilities for the U.S. Department of Defense (DoD). The company’s core capabilities include offering AI-driven mission solutions across national security, defense autonomy, border technology, transportation and logistics.

BBAI’s growing portfolio of contracts reflects its deepening integration into the modernization of military operations. Besides, on Oct. 13, 2025, BBAI entered into a collaboration with Tsecond, Inc. to offer AI-enabled edge infrastructure for mission-critical operations. This collaboration leads to the integration of BigBear.ai’s ConductorOS orchestration platform with Tsecond’s BRYCK platform, leading to the U.S. national security organizations deploying AI seamlessly and reliably.

Amid these initiatives, the One Big Beautiful Bill (OB3) is expected to benefit BigBear.ai over the long term, supported by its diversified service portfolio. The OB3 allocates $170 billion in supplemental funding to the Department of Homeland Security and $150 billion to the DoD for disruptive defense technologies, along with additional funds for shipbuilding and other national security missions. As a provider of AI-driven critical solutions, BBAI stands to gain from this legislative investment, with improved revenue visibility and long-term profitability prospects.

However, despite its promising technology, the company faces headwinds like dependence on government contracts and stiff competition from established defense and AI players. BBAI holds the potential to benefit from strategic partnerships and specialized AI solutions amid rising defense AI spending. But it must demonstrate sustainable contract execution to justify a bullish outlook.

BBAI Stock’s Price Performance vs. Other Market Players

Shares of this Virginia-based AI-powered decision intelligence solutions provider have soared 158.9% in the past six months, significantly outperforming the Zacks Computers - IT Services industry, the Zacks Computer and Technology sector and the S&P 500 index.

Moreover, firms like Palantir Technologies Inc. PLTR and C3.ai, Inc. AI offer substantial competition to BigBear.ai in the market space of providing AI-based products and services to government clients. Although the market trends are favoring these companies, they are falling behind in realizing the benefits from the robust fundamentals compared with BBAI. In the past six months, shares of Palantir have surged 79.5% while those of C3.ai have tumbled 12.3%.

BigBear.ai’s Valuation Trend

BigBear.ai stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 19.17, as evidenced by the chart below.

Notably, Palantir and C3.ai are currently trading at a forward 12-month P/S ratio of 80.54 and 7.93, respectively.

EPS Trend of BBAI

BBAI’s bottom-line estimates for 2025 and 2026 have remained unchanged over the past 60 days at a loss per share of $1.10 and 32 cents, respectively. The estimated figures for 2025 imply a flat growth rate, while those of 2026 indicate year-over-year growth of 71.2%.

BBAI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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