Back to top

Image: Bigstock

BigBear.ai Bets on Agentic AI and IoT: A Game-Changer in Defense?

Read MoreHide Full Article

Key Takeaways

  • BigBear.ai is aligning with U.S. military priorities in agentic AI, biometrics, and edge-orchestrated IoT.
  • ConductorOS and Arcas platforms are supporting DoD drone swarms and maritime domain awareness.
  • BBAI's $390M cash balance offsets Q2 revenue dip, fueling future AI-driven defense and security growth.

BigBear.ai (BBAI - Free Report) is leaning aggressively into agentic AI, biometric intelligence and edge-orchestrated IoT as global defense priorities shift toward autonomy and real-time decision support. With the passage of the One Big Beautiful Bill — including over $150 billion for disruptive defense technologies — BigBear.ai argues that U.S. military modernization is directly aligned with its core strengths. CEO Kevin McAleenan noted that this level of national security investment is “transformative… and directly in our lane”.

The company is already demonstrating real-world capability in homeland security and defense missions. Its ConductorOS platform is enabling distributed autonomy for swarming drones and battlefield AI integration with the DoD, while Arcas’ vision analytics and orchestration will support U.S. Fourth Fleet operations during UNITAS 2025 to enhance maritime domain awareness against trafficking and smuggling threats.

Beyond the battlefield, BigBear.ai is also scaling border and cargo security solutions — from biometric passenger processing in U.S. airports like Nashville International, improving CBP wait times, to AI-powered chain-of-custody tracking in Panama designed to curb illicit trade.

These programs directly align with the $6.2B+ DHS investment in border technology outlined during its second-quarter 2025 earnings discussion.

Financially, execution lag remains a risk. Revenue slipped 18% in the second quarter to $32.5 million on U.S. Army contract disruptions, and net loss widened due to non-cash adjustments. But a record $390 million cash balance gives management the fuel for organic investment and targeted M&A to accelerate growth.

BigBear.ai is positioning itself at the nexus of defense autonomy, AI-driven security and critical logistics modernization. While revenue volatility tied to federal contracting remains a concern, the strategic alignment with U.S. defense and DHS spending could mark this as a pivotal setup year before material growth starts to unfold.

BigBear.ai’s Competitive Position in the AI Defense Space

Palantir (PLTR - Free Report) and C3.ai (AI - Free Report) represent the most direct competition to BigBear.ai’s mission-focused agentic AI ambitions. Palantir has long been embedded across U.S. intelligence and defense, and it continues to leverage its Gotham platform to deepen operational command and control. The company emphasizes broad institutional reach, while it is also expanding into edge-AI and autonomous system orchestration that directly overlaps with BigBear.ai’s ConductorOS. At the same time, Palantir showcases strong execution consistency that BigBear.ai must still prove.

C3.ai brings another competitive dimension. The company markets itself as a pure-play enterprise AI leader, and it increasingly targets defense autonomy and battlefield AI applications. C3.ai focuses heavily on predictive maintenance, missile defense enablement and model-driven architectures — areas where it could challenge BigBear.ai’s position as defense agencies scale advanced, modular AI. Still, both Palantir and C3.ai validate the accelerating demand for operational AI, leaving BigBear.ai well placed if it executes with speed and sharper focus.

BigBear.ai Share Price Performance, Valuation and Estimates

Over the past six months, BigBear.ai shares have surged 115.6%, outperforming the Zacks Computers - IT Services industry, the broader Zacks Computer and Technology sector and the S&P 500 index.

BBAI Share Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

In terms of its forward 12-month price-to-sales ratio, BBAI stock is trading at 20.01, up from the industry’s 16.97.

P/S (F12M)

Zacks Investment Research
Image Source: Zacks Investment Research

Over the past 60 days, the Zacks Consensus Estimate for BBAI’s 2025 loss per share has remained unchanged at $1.10. The company reported the same in the year-ago period.
 

Zacks Investment Research
Image Source: Zacks Investment Research

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


C3.ai, Inc. (AI) - free report >>

Palantir Technologies Inc. (PLTR) - free report >>

BigBear.ai Holdings, Inc. (BBAI) - free report >>

Published in