Stock Market Today, Oct. 13: BigBear.ai Shares Gain on $225 Million Contract Awards
BigBear.ai (NYSE:BBAI), a mission-ready AI provider for defense and security, closed at $2.40, up 4.35%. The shares rose after the company announced more than $225 million in contract awards. Investors are watching its October 27 earnings for guidance and backlog commentary.
Trading volume exceeded 35 million shares, coming in about 78% above its three-month average of 19.7 million shares. BigBear.ai IPO'd in 2021 and has fallen 76% since going public.
How the markets moved today
The S&P 500 (SNPINDEX: ^GSPC) slipped 0.02% to 7,805, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 0.15% to 27,204. Among AI software and defense technology services peers, Palantir Technologies (NASDAQ:PLTR) fell 0.16% to $208.67, while Science Applications International (NASDAQ:SAIC) rose 0.20% to $133.31, as investors weighed government AI demand and earnings timing.
What this means for investors
On Tuesday, BigBear.ai said it secured more than $225 million in contract awards since July, reinforcing its federal backlog story. Shares gained as much as 11.7% on Oct. 13 before easing.
This announcement follows revenue growth of 13% year over year to $36.7 million in the second quarter, suggesting the company is on a roll after a rough 2025. Its acquisition of Ask Sage, an AI platform built for government agencies, has been a key driver of BigBear.ai's success this year.
Last year, revenue reached $127.7 million, which represented a decline of 19.3% compared to the previous year as federal budget cuts hurt the company. It generates more than 50% of its revenue from a few key customers, including major contracts with the U.S. Department of War and other federal agencies.
BigBear.ai's Oct. 13 announcement included 25 new generative AI awards with federal agencies, including the FBI, NASA, the U.S. Coast Guard, the Department of Energy and the Department of Veterans Affairs. This is a sign of a significant turnaround from 2025, with the company's October 27 earnings release serving as the next catalyst. Investors are watching guidance, backlog updates, and whether the contract wins support the outlook.
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Robert Izquierdo has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
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