Is BigBear.ai the Next Palantir Technologies?

Published: Friday, September 12, 2025 at 9:45 am

BigBear.ai: Can It Follow Palantir's Path?

The meteoric rise of Palantir Technologies, with a staggering 2,500% increase since the start of 2023, has captured the attention of investors. Palantir's success, built on AI-driven data analysis for government and commercial clients, has spurred interest in companies seeking to replicate its achievements. One such company is BigBear.ai, which also specializes in AI-related data analysis, primarily for government and government-adjacent businesses.

BigBear.ai is developing custom AI solutions, with a significant contract for the U.S. Army's Global Force Information Management-Objective Environment (GFIM-OE). This platform aims to optimize the Army's resource allocation and personnel management. Additionally, BigBear.ai is involved in developing software for airport screenings to expedite international traveler processing.

However, despite these ventures, significant differences exist between BigBear.ai and Palantir. Palantir offers a base product adaptable to various client needs, while BigBear.ai builds each solution from scratch. This approach impacts BigBear.ai's profitability, reflected in its gross margins, which fluctuate between 20% and 35%, significantly lower than Palantir's consistent 80% range.

Furthermore, BigBear.ai's growth trajectory raises concerns. In a market experiencing rapid AI spending, the company's Q2 revenue actually decreased by 18% year-over-year. This contrasts sharply with Palantir's robust growth, with a 48% company-wide increase in Q2. This lack of growth, coupled with lower margins, casts doubt on BigBear.ai's potential to mirror Palantir's success.

BNN's Perspective: While the AI sector presents significant investment opportunities, BigBear.ai's current performance raises caution flags. Investors should carefully weigh the risks associated with its lower margins and lack of growth against the potential of other AI investments, including diversified options like AI ETFs.

Keywords: BigBear.ai, Palantir, AI, artificial intelligence, stock, investment, government contracts, revenue, growth, margins, GFIM-OE, airport screenings, ETFs.

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