<div id="readability-page-1"><p>Investors are closely watching the AI defense sector following recent earnings reports from Palantir (PLTR) and BigBear.ai (BBAI). While both stocks moved lower after the reports, the results showed a big difference in growth, profits, and overall business momentum.</p><h3>Claim 55% Off TipRanks</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with  Smart Investor Picks  </li></ul> <p>Palantir continues to benefit from the rapid rise in AI spending, while BigBear.ai is still struggling to turn that demand into steady revenue growth. Following the earnings reports, investors are now looking at which stock offers the better value for the rest of 2026.</p> <h2><strong>Palantir Continues to Pull Ahead</strong></h2> <p>Palantir once again delivered a strong quarter. The company reported revenue of $1.63 billion, up 85% from a year ago and well above analyst estimates of $1.54 billion. Profit also came in ahead of expectations, with adjusted earnings of $0.33 per share versus Wall Street forecasts of $0.28.</p> <p>The strong results were driven by growing demand for Palantir's AI platform across both government and commercial customers. Management also raised its full-year 2026 revenue guidance to $7.66 billion, showing confidence that demand for its AI products remains strong.</p> <p>Still, the stock slipped after earnings as some investors worried about valuation. One such analyst is Gil Luria of DA Davidson, who lowered his price target to $165 from $180 and kept a Neutral rating. He pointed out that Palantir trades at a significant premium compared to peers, raising questions about how much upside is left. Even after the pullback, Palantir remains one of the most expensive software stocks on the market, and expectations are already extremely high.</p> <h2><strong>BigBear.ai Still Faces Growth Challenges</strong></h2> <p>BigBear.ai painted a very different picture. The company reported revenue of $34.4 million, slightly above estimates of $33.6 million. However, sales were still down 1% from the same period last year. That weak growth disappointed investors at a time when many AI companies are posting strong expansion numbers.</p> <p>The bigger concern came from earnings. BigBear.ai reported a loss of $0.12 per share, wider than Wall Street expectations for a loss of $0.08 per share. Rising operating costs, including expenses tied to the Ask Sage acquisition, added pressure to profits.</p> <p>There were a few positive signs in the report. Gross margins improved to 34%, showing the company is becoming more efficient and shifting toward higher-margin software and AI products. However, investors appear to want stronger revenue growth before becoming more bullish on the stock.</p> <h2><strong>Wall Street Take on PLTR and BBAI Stocks</strong></h2> <p>We used the TipRanks Stock Comparison Tool to see how Wall Street views Palantir and BigBear.ai following their latest earnings reports. Both stocks currently carry a &#34;Moderate Buy&#34; consensus rating from analysts. However, Palantir stands out with the higher analyst price target upside of about 37%, compared to nearly 29% for BigBear.ai.</p></div>

BBAI

PLTR

<p>Investors are evaluating Palantir (PLTR) and BigBear.ai (BBAI) following their Q1 earnings. Palantir reported a revenue of $1.63 billion, up 85% year-over-year, exceeding estimates, while BigBear.ai's revenue was $34.4 million, slightly above expectations but down 1% from last year. Palantir raised its 2026 revenue guidance to $7.66 billion, but its stock slipped due to valuation concerns. BigBear.ai reported a wider loss than expected, raising doubts about its growth. Both stocks have a "Moderate Buy" rating, with Palantir showing a higher analyst price target upside of 37%.</p>

- Investors are focusing on the AI defense sector after earnings reports from Palantir and BigBear.ai showed differing growth trajectories.  
- Palantir reported strong revenue of $1.63 billion, significantly above estimates, while BigBear.ai's revenue of $34.4 million slightly exceeded expectations but represented a decline from the previous year.  
- While both stocks have a "Moderate Buy" rating, Palantir has a higher analyst price target upside, reflecting more confidence from investors compared to BigBear.ai.

PLTR vs. BBAI: Which AI Defense Stock Is the Better Buy after Q1 Earnings?