BigBear.ai Slides 15.80% on Earnings Disappointment as $1.28B Volume Ranks 58th

BigBear.ai Holdings (BBAI) fell 15.80% on Tuesday, with a trading volume of $1.28 billion, ranking 58th in market activity. The decline followed the release of its second-quarter earnings report, which revealed significant underperformance against Wall Street expectations and a revised full-year revenue forecast.

The company reported a quarterly loss of $0.71 per share and revenue of $32.5 million, both far below analyst estimates. This marked an 18% year-over-year revenue decline. Management attributed the shortfall to unmet government contract expectations, particularly in U.S. Army-related programs, as agencies modernize their data infrastructure. The company now projects 2025 revenue between $125 million and $140 million, down from prior guidance of $160 million to $170 million.

CEO Kevin McAleenan highlighted disruptions in federal contracts due to efficiency initiatives, though he expressed optimism about future growth opportunities. However, the stock’s sharp drop reflects investor skepticism about the company’s ability to secure key defense contracts amid intensified competition in the AI sector. BigBear’s cash reserves remain strong at $390.8 million, but its earnings trajectory and revenue contraction have raised concerns about long-term viability compared to peers like Palantir.

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