BigBear.ai Holdings (BBAI) recently posted Q3 FY25 results that topped expectations, even as revenue declined. Sales fell 20% year-over-year to $33.1 million, mainly because of less work on certain U.S. Army projects. Still, the result came in above analysts’ estimate of $31.81 million. The company also reported a net loss of $0.03 per share, which was better than the expected $0.07 loss and last year’s $0.06 loss, showing signs of better cost control.
Meet Your ETF AI Analyst
Despite the Q3 beat, TipRanks’ AI Analyst Mira Patchera (under the OpenAI-4o model) cut the price target on BBAI stock to $5.5 from $6 and maintained a Neutral rating. The new price target suggests about 9.24% downside from current levels.
According to TipRanks A.I. Stock Analysis, BBAI earns a strong score of 42 out of 100, reflecting “weak financial performance and bearish technical indicators.”
For context, TipRanks’ AI Stock Analysis delivers automated, data-driven evaluations of stocks based on key performance metrics, giving investors a clear and concise snapshot of a stock’s potential. Moreover, TipRanks’ A.I.-driven rating combines insights from multiple models, including OpenAI’s (PC:OPAIQ) GPT-4o and Google’s (GOOGL) Gemini, to offer investors a clearer view of a stock’s potential.
AI Analyst Weighs BBAI’s Strengths and Risks
The analysis points out both positive and negative factors that affect the company’s outlook.
On the positive side, the AI analyst notes that BigBear.ai’s acquisition of Ask Sage strengthens its position in artificial intelligence, especially in defense and national security. The deal is expected to add about $25 million in annual recurring revenue in 2025 and expand the company’s presence in regulated areas like defense and border security.
The AI analysis also highlights BigBear.ai’s strong cash position, which gives it flexibility to invest in future growth. The company reported a record cash balance of $456.6 million as of September 30, 2025. In addition, its international partnerships and new solutions further support potential global expansion.
On the downside, the analysis points to lower revenue and weak cash flow, which could limit the company’s ability to invest and grow. It also flags a goodwill impairment, suggesting some past deals may have been overvalued and could weigh on future financial stability.
What Is the Future of BBAI Stock?
Analysts remain divided on BigBear.ai’s long-term outlook. On TipRanks, BBAI stock has a Moderate Buy consensus rating based on two Buys and one Hold rating. The average BigBear.ai price target of $6.33 implies 4.46% upside potential from current levels. Year-to-date, BBAI stock has gained 36.18%.
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