Companies /Technology

BigBear.ai Inc

NYSE: BBAI Information Technology Services
$3.05
▼ $0.14 (−4.39%) today
Markets closed · 3:54am ET

Q1 2026 Earnings

Reported May 5, 2026, 4:19pm ET · SEC source
$-0.12
Miss −50.00%
EPS · est. $-0.08
$34.4M
Beat +2.49%
Revenue · est. $33.6M
−2.1%
Trailing market
BBAI vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−5%0+5%May 5May 6report 4:19pm ETearnings+1.2%+5.9%
−5%0+5%May 5May 6earnings+1.2%+5.9%
BBAI +5.9%S&P 500 +1.2%
−5%0+5%May 5May 6report 4:19pm ETearnings+1.8%+5.9%
−5%0+5%May 5May 6earnings+1.8%+5.9%
BBAI +5.9%NASDAQ +1.8%
0+4%+8%+12%May 4May 13report 4:19pm ETearnings+2.5%+6.8%
0+4%+8%+12%May 4May 13earnings+2.5%+6.8%
BBAI +6.8%S&P 500 +2.5%
0+4%+8%+12%May 4May 13report 4:19pm ETearnings+4.8%+6.8%
0+4%+8%+12%May 4May 13earnings+4.8%+6.8%
BBAI +6.8%NASDAQ +4.8%
+5.56%
Day of report
−4.58%
Next session
−3.66%
One week
−1.37%
30 days

S&P 500 over the same 30 days: +0.73%.

Did BBAI Beat Earnings? Q1 2026 Results

BigBear.ai delivered a mixed first quarter for fiscal 2026, beating modest revenue expectations while falling well short on the bottom line. The defense-focused AI company posted revenue of $34.44 million, edging past the $33.60 million consensus by 2.49%, though the figure was essentially flat against the year-ago period, slipping 0.9% year-over-year. The earnings picture was harder to overlook: a loss of $0.12 per share came in 50% worse than the $0.08 loss analysts had expected, as soaring SG&A expenses, swollen by intangible amortization from the late-2025 Ask Sage acquisition and elevated legal costs, weighed heavily on operating results. The silver lining was a meaningful gross margin expansion to 34.0% from 21.3% a year ago, reflecting higher-margin generative AI revenue contributed by Ask Sage. Backlog climbed 14% sequentially to $281.90 million, anchored by a sole-source classified national security contract, offering some near-term visibility as the company reaffirmed full-year 2026 revenue guidance of $135 million to $165 million. Shares moved modestly higher following the release, though investor debate over the pace of backlog conversion to recognized revenue persists.

Key Takeaways
  • Ask Sage acquisition contributing higher-margin GenAI Platforms and Products revenue
  • Gross margin expansion from 21.3% to 34.0% year-over-year
  • Backlog increased 14% sequentially to $281.9 million
  • Interest expense reduced by $4.8 million year-over-year following 2029 Notes conversion
  • Close to $75 million in Q1 contract wins in national security and trade & travel

“It is great to report significant wins in Q1 amounting to close to $75 million that prove our thesis that national security, and trade & travel are two markets that we are right to stay laser-focused on serving. These wins keep us on track to meet our topline revenue target for 2026 and we are pleased to see our pipeline strengthening at this stage of the year.”

BigBear.ai CEO, on the earnings call

Forward Guidance & Outlook

BigBear.ai affirmed its full-year 2026 revenue guidance of $135 million to $165 million. Management indicated that close to $75 million in Q1 wins keep the company on track to meet its topline revenue target, with the pipeline strengthening. The remaining $16.5 million of debt (2026 Notes) is expected to be settled before the end of 2026.

BBAI YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$-60,000,000$-30,000,000$0$30.0M$34.8M$34.4MRevenue$7.4M$11.7MGross Profit$-32,049,419$-24,255,000Operating Income$-52,349,903$-56,763,000Net Income
$-60,000,000$-30,000,000$0$30.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.