BigBear.ai Stock Plummets on Disappointing Earnings and Reduced Guidance

BigBear.ai shares tumbled 20.6% this week as the defense-focused AI company reported dismal second-quarter results. The company posted a $0.71 per-share loss on $32.5 million in revenue—far worse than Wall Street's expectations of a $0.06 loss on $40.6 million in sales.

Management slashed full-year revenue guidance from $160-$180 million to $125-$140 million, citing federal contract disruptions. CEO Kevin McAleenan pointed to potential growth from newly authorized Department of Homeland Security funding, but investors remain skeptical.

The downturn contrasts sharply with big tech's AI-driven earnings boom. While sector leaders report record results, end-user AI firms like BigBear struggle to convert technology potential into financial performance.

With mounting losses, softening sales, and a premium valuation, BigBear.ai represents a high-risk proposition. The company must demonstrate meaningful progress in coming quarters to justify its market position.