Palantir Technologies (PLTR) has delivered exceptional stock performance, soaring over 186% in the last year through Nov. 14. CEO Alex Karp highlighted that Palantir enabled retail investors to achieve returns once exclusive to top Palo Alto venture capitalists. Palantir gained recognition through its U. S. government work. Similarly, BigBear. ai (BBAI), another AI firm serving federal clients, saw its stock surge over 254% in the same period. Can BigBear. ai replicate Palantir’s success?Examining financials provides insight. In Q3, Palantir’s revenue rose 63% year-over-year to $1. 2 billion, while BigBear. ai’s sales declined 20% to $33. 1 million. Over recent years, Palantir’s revenue has steadily grown, whereas BigBear. ai’s growth has stalled. BigBear. ai faced setbacks due to Trump administration budget cuts targeting “wasteful Defense Department contracts, ” resulting in lost revenue from U. S.

Army programs. In contrast, Palantir’s U. S. government revenue increased 52% YOY in Q3 to $486 million, indicating stronger government reliance on its offerings. Financially, BigBear. ai is unprofitable, ending Q3 with a $21. 9 million operating loss—more than double the previous year’s $10. 5 million loss—while Palantir posted a $393. 3 million operating income, up from $113. 1 million in 2024. BigBear. ai’s losses suggest deeper business or competitive challenges beyond government spending cuts. Although it reported a small $2. 5 million net income in Q3 due to fair value adjustments, its net loss over the past three quarters totaled $288 million versus $157. 3 million last year. BigBear. ai’s stock has increased from a low base ($1. 65 last November) but has underperformed Palantir since its 2021 IPO. There is potential for BigBear. ai to improve: on Nov. 10, it acquired Ask Sage, a generative AI platform tailored for defense and regulated sectors, with 160, 000 government users. Ask Sage is expected to generate $25 million in annual recurring revenue in 2025—a sixfold increase over 2024—potentially boosting BigBear. ai’s total sales projected between $125 million and $140 million this year, though still below 2024’s $158. 2 million. To mimic Palantir’s impressive gains, BigBear. ai must accelerate sales growth and move toward profitability by cutting operating costs. Though current metrics suggest it won’t match Palantir’s stock performance soon, sustained growth and profitability improvements could eventually close the gap.