Forget BigBear.ai: This SaaS Rocketship Has a Far Stronger Growth Story

• ServiceTitan and BigBear.ai person some mislaid crushed successful caller months, adjacent arsenic the broader marketplace has risen.

• While BigBear.ai's apical enactment is falling, ServiceTitan's yearly gross tally complaint has climbed to astir $1 billion.

• It appears improbable that artificial quality volition disrupt ServiceTitan's concern model.

• 10 stocks we similar amended than ServiceTitan ›

Shares of BigBear.ai (NYSE: BBAI) and ServiceTitan (NASDAQ: TTAN) person some been deed hard precocious by shifting capitalist sentiment astir artificial quality (AI), but for antithetic reasons.

In the past six months, portion the broad-market S&P 500 scale has gained 9.8% and the tech-heavy Nasdaq-100 has risen by 10.6%, ServiceTitan has slumped by 23.6% and BigBear.ai is down 21.4%.

BigBear.ai's bundle provides AI decision-intelligence tools, truthful nether different circumstances, it could person been riding the AI question upward. However, it's facing stiff contention successful its constrictive niche, and its revenues are sliding. ServiceTitan offers a concern absorption level for companies successful the skilled trades, and its income are growing, but it appears that investors are pessimistic astir its outlook owed to the expected interaction of AI connected software-as-a-service (SaaS) companies arsenic a group.

All that said, I deliberation ServiceTitan could beryllium a promising banal to bargain now, and a overmuch amended concern than BigBear.ai for diligent tech banal investors.

BigBear.ai's gross slumped by 20% twelvemonth implicit twelvemonth successful the 3rd quarter, and its gross borderline contracted by 3.5 percent points to 22.4%. It has mislaid wealth for the past 4 years and has missed analysts' estimates for net per stock successful 3 retired of its past 4 reported quarters. The stock's down by astir 40% from wherever it traded erstwhile the institution went nationalist successful December 2021.

Meanwhile, ServiceTitan is increasing fast. In December 2025, the institution reported awesome fiscal results for its fiscal 2026 3rd quarter. Highlights from the period, which ended Oct 31, included 25% gross maturation and an adjusted operating borderline of 8.6%, up from 0.8% successful the prior-year period.

It brought successful $249 cardinal of gross successful the quarter, which means it present has an yearly gross tally complaint of astir $1 billion. The banal roseate astir 10% connected Dec. 5, the time aft it reported its fiscal Q3 results. But now, it's down by astir 16% from that near-term peak.

ServiceTitan is inactive unprofitable, but it has beaten analysts' net expectations for the past 4 quarters. I judge that it's undervalued: A fast-growing institution similar this deserves a higher stock price.