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FORT LAUDERDALE, Fla., Sept. 04, 2026 (GLOBE NEWSWIRE) -- EdgeMode, Inc. (OTC: EDGM) today announces that, by mutual agreement with BlackBerry AIF and BLACK AI Group, the current review process between the parties will be extended for an additional period of up to six months.

During this period, BLACK AI Group will continue to advance independently with the development of its AI infrastructure platform, including its large-scale data center projects, strategic partnerships, and financing strategy.

The parties remain aligned around the opportunities within the AI infrastructure sector and will use this additional period to complete their strategic, corporate, and commercial review, while EdgeMode undertakes the internal corporate, financial, and strategic work required to support any potential future transaction.

Potential structures may include a merger, acquisition, investment, strategic partnership, economic participation, or another form of transaction. No specific transaction is guaranteed. Any potential transaction will remain subject to the satisfactory completion of the review process, applicable due diligence, corporate approvals and definitive documentation.

Further updates will be provided as appropriate.

About EdgeMode
EdgeMode develops scalable AI-ready data center campuses and integrated energy infrastructure across strategic global markets. The company focuses on power-secured developments aligned to accelerating AI and high-performance compute demand.

About BlackBerry AIF
BlackBerry Alternative Investment Fund (AIF) is a premier investment vehicle specializing in the development of next-generation data-center infrastructure tailored for AI and hyperscale workloads. Based in Spain, the fund prioritizes projects that emphasize sustainability, performance, and strategic connectivity—serving as a key enabler for hyperscalers, cloud providers, and AI innovators across Europe.

Contact Information
Jamie Kightley
IBA International - PR for EdgeMode
Email: [email protected]
Phone: +1 561 228 1940 or +44 1572 757932

Charlie Faulkner
Chief Executive Officer
EdgeMode Inc.
Email: [email protected]

Deutsche Bank AG acquired a new stake in BlackBerry Limited (NYSE:BB – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 71,231 shares of the company’s stock, valued at approximately $901,000.

Other hedge funds also recently made changes to their positions in the company. V2 Financial group LLC increased its holdings in shares of BlackBerry by 6.8% during the 1st quarter. V2 Financial group LLC now owns 32,100 shares of the company’s stock worth $104,000 after acquiring an additional 2,050 shares during the last quarter. CoreCap Advisors LLC acquired a new stake in BlackBerry during the 2nd quarter valued at $31,000. Elevation Wealth Partners LLC bought a new position in BlackBerry during the second quarter worth $32,000. Raymond James Financial Inc. boosted its position in BlackBerry by 2.1% during the third quarter. Raymond James Financial Inc. now owns 128,998 shares of the company’s stock worth $630,000 after purchasing an additional 2,689 shares during the period. Finally, Invesco Ltd. increased its holdings in shares of BlackBerry by 2.4% in the fourth quarter. Invesco Ltd. now owns 128,487 shares of the company’s stock valued at $487,000 after purchasing an additional 2,975 shares during the last quarter. 54.48% of the stock is owned by institutional investors and hedge funds.

BlackBerry Stock Performance BB stock opened at $8.16 on Tuesday. BlackBerry Limited has a 52 week low of $3.12 and a 52 week high of $13.59. The company has a market capitalization of $4.79 billion, a PE ratio of 90.68 and a beta of 2.26. The company’s 50-day simple moving average is $9.41 and its 200 day simple moving average is $6.80. The company has a debt-to-equity ratio of 0.26, a quick ratio of 2.20 and a current ratio of 2.20.

BlackBerry (NYSE:BB – Get Free Report) last issued its quarterly earnings data on Thursday, June 25th. The company reported $0.04 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.01. The business had revenue of $152.90 million during the quarter, compared to analysts’ expectations of $136.10 million. BlackBerry had a net margin of 10.31% and a return on equity of 11.66%. The business’s revenue was up 25.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.02 EPS. BlackBerry has set its FY 2027 guidance at 0.160-0.200 EPS and its Q2 2027 guidance at 0.030-0.040 EPS. As a group, sell-side analysts anticipate that BlackBerry Limited will post 0.13 earnings per share for the current year. Insider Buying and Selling In related news, insider Philip S. Kurtz sold 6,414 shares of the stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $11.07, for a total transaction of $71,002.98. Following the sale, the insider owned 125,158 shares of the company’s stock, valued at $1,385,499.06. This represents a 4.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO John Joseph Giamatteo sold 152,012 shares of the firm’s stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $11.35, for a total value of $1,725,336.20. Following the transaction, the chief executive officer owned 687,246 shares in the company, valued at approximately $7,800,242.10. This trade represents a 18.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 355,858 shares of company stock valued at $4,012,270. 0.51% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In Several equities analysts have recently weighed in on BB shares. Canadian Imperial Bank of Commerce increased their price objective on shares of BlackBerry from $10.00 to $13.00 and gave the company an “outperformer” rating in a research report on Friday, June 26th. Canaccord Genuity Group upped their price target on shares of BlackBerry from $8.20 to $10.30 and gave the company a “hold” rating in a research note on Friday, June 26th. Weiss Ratings cut shares of BlackBerry from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday. Stifel Nicolaus started coverage on shares of BlackBerry in a research report on Wednesday, June 24th. They set a “buy” rating and a $12.00 price objective for the company. Finally, TD Securities restated a “hold” rating and set a $8.00 price objective on shares of BlackBerry in a report on Friday, June 26th. Two research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, BlackBerry has an average rating of “Hold” and a consensus target price of $8.92.

Check Out Our Latest Report on BB

About BlackBerry (Free Report)

BlackBerry Limited, formerly known as Research In Motion (RIM), is a Canadian enterprise software and cybersecurity company based in Waterloo, Ontario. Since its founding in 1984, the firm has evolved from a pioneer in mobile devices into a specialist in secure communications, endpoint management, and embedded systems software. BlackBerry’s core mission today centers on delivering security-first solutions that protect critical data and infrastructure across diverse industries.

At the heart of BlackBerry’s offerings is the BlackBerry Spark® platform, which combines unified endpoint management (UEM), secure communications, and artificial intelligence–driven threat detection into a single framework.

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Who remembers the phrase "BBM me?"

In its heyday, BlackBerry was one of the biggest phone makers in the world. BlackBerry Messenger (BBM) was the instant messaging service that became a fixture of early smartphone culture. But while, BlackBerry remains an iconic brand, its business today looks vastly different from what it was nearly two decades ago.

While far off its 2008 highs, BlackBerry's share price has doubled this year as investors reward the company's strategy to focus on critical software for cars and secure communications. 

John Giamatteo, CEO of BlackBerry, joined me for the latest episode of "The Tech Download" to discuss how the company is positioning for a future in AI.

"While the products that we offer to our customers around the world can't necessarily be held in the palm of your hands like the old devices, those values of security, trust and innovation still shine through in the software and services and the other solutions that we deliver to the market today," Giamatteo said as he summed up the current business.

watch now

New look business modelTwo businesses drive the bulk of BlackBerry's revenue. 

The first is secure communications. BlackBerry sells encrypted and secure communications products to customers like governments.

The second is QNX, a business through which BlackBerry sells operating systems and other embedded software for cars to underpin features ranging from braking systems to some semi-autonomous driving functions.

QNX has become a strong player in safety-critical automotive software and is embedded in 275 million vehicles, according to BlackBerry.

But Giamatteo sees the QNX business as key to a future in AI, specifically, physical AI, a term that encompasses products like autonomous cars and robotics. BlackBerry has crafted its software to have high safety standards, a non-negotiable for cars and other moving objects. That could also work in areas like robotics.

"We think that could be even a faster-growing segment of the industry for things like robotics," Giamatteo said.

The CEO is not talking about humanoid robots, like the ones you've probably seen videos of in China recently. Instead, he is referring to robots in an industrial, factory or medical setting.

Robotics is one of the company's "fastest-growing businesses inside the QNX portfolio," the CEO told me.

BlackBerry is also now making money from the sector. The company has a backlog of orders for QNX worth $950 million and "a portion of that is robotics," Giamatteo said. He did not disclose specific numbers around the robotics orders.

After the launch of the iPhone in 2007 transformed the smartphone industry, BlackBerry fought hard to keep its consumer mobile division alive with new devices — but ultimately lost the battle. 

Its reinvention has been a remarkable one, and for now, investors seem to be embracing the new direction.

News editA San Francisco federal judge on Thursday ruled that the Pentagon's blacklisting of Anthropic earlier this year was illegal.

Anthropic has inked a roughly $45 billion cloud deal with Nscale, a U.K.-based AI infrastructure company, sources told CNBC.

Nvidia's near-monopoly over the most advanced AI chips is under "threat" as OpenAI's and other tech giants announce custom-built semiconductors, according to analysts.

OpenAI has rolled out ads on ChatGPT for select plans in India, one of its largest and most active markets, as the company looks to maximize its revenue ahead of its planned listing next year.

SK Hynix is bolstering its U.S. presence, with a new factory in Indiana that CEO Kwak Noh-Jung says will make the state a "key HBM production base in America" by 2030.

One more thing

Nvidia stock

Bucking the trend — Nvidia's stock boost on Thursday was a sharp change to its fortunes in the previous four earnings quarters. Despite meeting or beating estimates, shares dropped as investors remained unimpressed. Not so this time out.

BlackBerry Limited (NYSE:BB – Get Free Report) has earned an average rating of “Hold” from the eleven analysts that are currently covering the firm, MarketBeat.com reports. Nine investment analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $8.9222.

Several equities analysts have recently commented on the company. Stifel Nicolaus initiated coverage on BlackBerry in a research report on Wednesday, June 24th. They set a “buy” rating and a $12.00 price objective on the stock. Weiss Ratings upgraded shares of BlackBerry from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, July 28th. Zacks Research downgraded BlackBerry from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 25th. Canaccord Genuity Group boosted their target price on BlackBerry from $8.20 to $10.30 and gave the company a “hold” rating in a research note on Friday, June 26th. Finally, TD Securities restated a “hold” rating and set a $8.00 target price on shares of BlackBerry in a report on Friday, June 26th.

Check Out Our Latest Report on BlackBerry

BlackBerry Stock Performance Shares of BB opened at $8.17 on Monday. The company has a market cap of $4.80 billion, a PE ratio of 90.79 and a beta of 2.26. The company has a current ratio of 2.20, a quick ratio of 2.20 and a debt-to-equity ratio of 0.26. The stock has a 50-day moving average price of $9.42 and a 200-day moving average price of $6.77. BlackBerry has a 12-month low of $3.12 and a 12-month high of $13.59. BlackBerry (NYSE:BB – Get Free Report) last posted its quarterly earnings data on Thursday, June 25th. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.01. BlackBerry had a net margin of 10.31% and a return on equity of 11.66%. The firm had revenue of $152.90 million for the quarter, compared to analysts’ expectations of $136.10 million. During the same quarter last year, the company posted $0.02 EPS. The business’s quarterly revenue was up 25.6% on a year-over-year basis. BlackBerry has set its FY 2027 guidance at 0.160-0.200 EPS and its Q2 2027 guidance at 0.030-0.040 EPS. As a group, equities analysts forecast that BlackBerry will post 0.13 earnings per share for the current fiscal year.

Insider Buying and Selling In other news, insider Philip S. Kurtz sold 6,414 shares of the stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $11.07, for a total transaction of $71,002.98. Following the completion of the sale, the insider owned 125,158 shares of the company’s stock, valued at approximately $1,385,499.06. This represents a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Tim Foote sold 25,878 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $12.39, for a total transaction of $320,628.42. Following the completion of the transaction, the chief financial officer owned 58,372 shares in the company, valued at $723,229.08. This represents a 30.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 355,858 shares of company stock valued at $4,012,270 over the last quarter. Company insiders own 0.51% of the company’s stock.

Institutional Investors Weigh In On BlackBerry A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. CoreCap Advisors LLC bought a new stake in BlackBerry in the 2nd quarter worth $31,000. Elevation Wealth Partners LLC bought a new position in shares of BlackBerry during the second quarter valued at about $32,000. Global Retirement Partners LLC bought a new position in shares of BlackBerry during the second quarter valued at about $50,000. Nykredit A S purchased a new stake in shares of BlackBerry during the second quarter worth about $111,000. Finally, Csenge Advisory Group purchased a new stake in shares of BlackBerry during the second quarter worth about $126,000. 54.48% of the stock is currently owned by institutional investors.

BlackBerry Company Profile (Get Free Report)

BlackBerry Limited, formerly known as Research In Motion (RIM), is a Canadian enterprise software and cybersecurity company based in Waterloo, Ontario. Since its founding in 1984, the firm has evolved from a pioneer in mobile devices into a specialist in secure communications, endpoint management, and embedded systems software. BlackBerry’s core mission today centers on delivering security-first solutions that protect critical data and infrastructure across diverse industries.

At the heart of BlackBerry’s offerings is the BlackBerry Spark® platform, which combines unified endpoint management (UEM), secure communications, and artificial intelligence–driven threat detection into a single framework.

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In the latest close session, BlackBerry (BB - Free Report) was down 4.85% at $7.65. The stock's change was less than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.77%.

Prior to today's trading, shares of the cybersecurity software and services company had lost 5.85% lagged the Computer and Technology sector's gain of 1.04% and the S&P 500's gain of 2.31%.

The investment community will be closely monitoring the performance of BlackBerry in its forthcoming earnings report. The company is forecasted to report an EPS of $0.04, showcasing no movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $143 million, indicating a 10.34% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.17 per share and a revenue of $612.37 million, indicating changes of +6.25% and +11.52%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for BlackBerry. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. BlackBerry is currently a Zacks Rank #2 (Buy).

With respect to valuation, BlackBerry is currently being traded at a Forward P/E ratio of 47.29. This signifies a premium in comparison to the average Forward P/E of 20.99 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Key Takeaways BlackBerry's QNX revenues rose 26% to $72M, while adjusted EBITDA jumped 52% to about $19M.Aptiv cut 2026 revenue guidance by $300M at the midpoint amid production changes and launch delays.BlackBerry raised fiscal 2027 QNX revenue guidance to $295M-$312M and EBITDA guidance to $74M-$86M. The automotive industry is witnessing a shift toward software-defined and increasingly autonomous vehicles.

BlackBerry (BB - Free Report) participates primarily through its QNX automotive operating systems, while Aptiv PLC (APTV - Free Report) is a designer and manufacturer of vehicle components and a provider of electrical, electronic and safety technology solutions to the global automotive market.  

BlackBerry and Aptiv offer investors two distinct ways to invest in the automotive tech space. So, now the question arises: Which stock makes for a better investment pick at present? Let’s dive into the pros and cons of each company.

The Case for BBFor BlackBerry, QNX remains the key catalyst, with revenues climbing 26% year over year to $72 million in the first quarter of fiscal 2027. More importantly, QNX's adjusted gross margin expanded 500 basis points to 86%, while adjusted EBITDA jumped 52% to about $19 million.

The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.

Management emphasized that these tools are mainly tied to new platforms, including its SDP 8 architecture, which positions the company for multi-year revenue visibility. The company’s partnerships with major chipmakers such as NVIDIA and Qualcomm, underscore QNX’s role as a foundational software layer in next-generation intelligent systems.

Beyond automotive, General Embedded Markets is a fast-growing opportunity, expanding QNX’s reach into robotics, industrial automation and medical devices, while Physical AI represents another significant long-term growth avenue.

Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and drive backlog. While still early, management remains positive about securing a design win within the current fiscal year.

Following the strong quarter, BlackBerry raised its fiscal 2027 QNX revenue outlook to $295-$312 million and adjusted EBITDA guidance to $74-$86 million.

However, the path is not without challenges. Heavy reliance on the dynamic automotive industry is a concern. The QNX platform remains exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. Some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk.

Though BB’s other segment, Secure Communications, is rebounding, it remains exposed to deal-timing variability and this could impact performance.  

The Case for APTVAptiv’s automotive business remains supported by a healthy pipeline of new programs across some of the industry’s most important technology areas. Aptiv reported progress across next-generation automotive technologies, including full-stack Gen 6 ADAS, driver and cabin monitoring, Gen 8 radar, centralized software-defined vehicle architectures, digital cockpits and high-voltage interconnects.

Aptiv generated $5 billion of new business awards during the second quarter, taking year-to-date awards to $10 billion and keeping the company on track for its $20 billion full-year target.

However, the near-term automotive environment remains challenging. Aptiv reduced its 2026 revenue guidance at the midpoint by $300 million, including roughly $150 million from changes in customer production schedules, $100 million from delayed launches and ramps, and $50 million from the timing of enterprise software and services sales. 2026 revenues are now projected to be $12.6-$12.8 billion, while adjusted EPS is forecast at $5.60-$5.80.

China is a particular concern. Aptiv has successfully increased its business with local Chinese OEMs and grew China revenues 5% in the second quarter, but growth was partly offset by slowdown in production in the domestic market. Weakness in China's domestic automotive market is affecting both local OEM production and European luxury vehicles exported into China.

Nonetheless, adjusted EBITDA margin expanded by 10 basis points in the second quarter despite automotive pressures. Engineered Components performed particularly well, expanding adjusted EBITDA margin by 100 basis points year over year.

Though the company's long-term opportunity remains substantial, auto sector challenges make the near-term trajectory less predictable. Aptiv is focused on business diversification to reduce reliance on auto sector.

Non-automotive revenues increased 12% in the second quarter, with opportunities spanning robotics, drones, aerospace and defense, energy storage, and data centers. Management is confident that robotics and drones can collectively generate roughly $300 million in annual revenues within the next few years. For now, however, those newer businesses remain too small to fully offset weakness in Aptiv's much larger automotive operations.

Price Performance and Valuation for BB & APTVYear to date, BB has registered gains of 120%, while Aptiv is down 35.8%.

Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales ratio, BB is trading at 7.63X, higher than APTV’s 0.77X.

Image Source: Zacks Investment Research

How Does the Zacks Consensus Estimate Compare for BB & APTV?Analysts have lowered earnings estimates both BB and APTV for the current fiscal year in the past 60 days.

BB
Image Source: Zacks Investment Research

APTV
Image Source: Zacks Investment Research

BB or APTV: Which Is a Better PickBB currently holds a Zacks Rank #2 (Buy) and APTV carries a Zacks Rank #5 (Strong Sell).

In terms of the Zacks Rank, BB appears to be a better pick at the moment.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SHANGHAI, CN / ACCESS Newswire / August 18, 2026 / Momenta, a leading Physical AI company, together with XHEART, has selected QNX® OS for Safety from QNX, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), as the foundation for its Physical AI-defined autonomous driving platform.

Integrating Momenta's full-stack autonomous driving solution, XHEART X7 automotive-grade SoC, and QNX OS for Safety, built on QNX® SDP 8.0, the three collaborators are delivering a production-ready solution designed to help automakers accelerate deployment while meeting global functional safety standards.

Certified to ISO 26262 ASIL D, this solution enhances driving safety and intelligence, and gives OEMs a functionally safe foundation for vehicles destined for stringent markets, such as those requiring compliance with Europe's UN R171 (DCAS).

"The global scale for Physical AI demands safety first. Through our collaboration with QNX and XHEART we are proud to deliver a production-ready system built to one of the highest global safety benchmarks, empowering automakers to confidently introduce intelligent vehicles to markets everywhere," said Huan Sun, SVP of Momenta.

"Momenta and XHEART are helping enable the next generation of Physical AI technology, and QNX is proud to be the Safety-Certified Operating System underpinning that future," said Grant Courville, SVP of Products and Strategy at QNX. "This collaboration with Momenta and XHEART strengthens our position as a trusted foundational software provider for the world's leading autonomous driving systems."

"Building next-generation autonomous driving requires AI-native silicon," said TL Lee, CEO of XHEART. "The XHEART X7 SoC, paired with QNX's certified OS and Momenta's algorithms, gives OEMs the performance, safety and scalability required for global markets."

###

About Momenta

Momenta is a global leader in Physical AI, committed to creating a better life through breakthrough AI technologies.

From seeing the world to foreseeing it - built on the World Model, and guided by the technical insight behind its data flywheel, Momenta advances two tracks in parallel, Mass Production and Scalable Robo, bringing Physical AI into everyday life.

In collaboration with top global OEMs and mobility platforms, Momenta is accelerating mass production and expanding across markets and vehicle platforms - from passenger cars to Robovans, Robotrucks and Robotaxis.

About XHEART

XHEART is committed to defining the core computing foundation for the era of large models-providing a purpose-built hardware platform that enables intelligent systems to scale with exceptional performance. Through chips redefined from the ground up for large-model workloads, XHEART serves as the "core engine" driving Physical AI in autonomous driving, robotics, and beyond. We are charting the future with silicon.

About BlackBerry

BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.

About QNX

QNX, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), provides the trusted foundation that software-defined and Physical AI systems depend on to operate safely and predictably in the real world. For nearly half a century, QNX has powered safety-critical applications where failure is not an option. The business leads the way in delivering safe and secure operating systems, hypervisors, middleware, solutions, and development tools, along with the support and services delivered by trusted embedded software experts. Today, QNX technology underpins hundreds of millions of vehicles on the road and a wide range of mission-critical systems across industrial controls, robotics, medical devices, commercial transportation, rail, and aerospace and defense. QNX is headquartered in Ottawa, Canada. Learn more at qnx.software.

©2026 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY and EMBLEM Design, QNX and the QNX logo design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.

Media Contacts:

BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

SOURCE: QNX

BlackBerry (BB - Free Report) ended the recent trading session at $8.73, demonstrating a -1.91% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.52%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.32%.

Coming into today, shares of the cybersecurity software and services company had lost 1% in the past month. In that same time, the Computer and Technology sector gained 1.99%, while the S&P 500 gained 3.3%.

The investment community will be paying close attention to the earnings performance of BlackBerry in its upcoming release. The company is expected to report EPS of $0.04, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $143 million, up 10.34% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.17 per share and revenue of $612.37 million, indicating changes of +6.25% and +11.52%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BlackBerry. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. BlackBerry currently has a Zacks Rank of #2 (Buy).

Looking at valuation, BlackBerry is presently trading at a Forward P/E ratio of 52.35. This expresses a premium compared to the average Forward P/E of 21.52 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

FORT LAUDERDALE, Fla., Aug. 13, 2026 (GLOBE NEWSWIRE) -- EdgeMode, Inc. (OTC: EDGM) and BlackBerry Alternative Investment Fund (AIF) today announced the signing of a Memorandum of Understanding (MOU) outlining their intention to merge and create BLACK AI, a publicly listed AI infrastructure development platform.

BlackBerry (BB - Free Report) ended the recent trading session at $8.73, demonstrating a -1.58% change from the preceding day's closing price. This change lagged the S&P 500's 0.17% loss on the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq lost 0.83%.

Prior to today's trading, shares of the cybersecurity software and services company had lost 20.09% lagged the Computer and Technology sector's gain of 3.01% and the S&P 500's gain of 3.52%.

Market participants will be closely following the financial results of BlackBerry in its upcoming release. On that day, BlackBerry is projected to report earnings of $0.04 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $143 million, up 10.34% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.17 per share and a revenue of $612.37 million, signifying shifts of +6.25% and +11.52%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for BlackBerry. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. BlackBerry is holding a Zacks Rank of #2 (Buy) right now.

Looking at valuation, BlackBerry is presently trading at a Forward P/E ratio of 52.18. This signifies a premium in comparison to the average Forward P/E of 21.72 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Key Takeaways BlackBerry's shares have surged 124.8% in 2026 as revenues, EBITDA and cash flow improved.QNX revenues rose 26% to $72 million, with new licenses and partnerships supporting long-term growth.BlackBerry raised its revenue outlook, though valuation, competition and execution risks remain. BlackBerry Limited (BB - Free Report) has staged an impressive comeback in 2026 with shares having rallied 124.8% year to date (“YTD”), outperforming the Internet Software industry (down 11.4%) and the S&P 500 composite (up 9.5%). The rally is underpinned by structural growth drivers and a strong business model.

Price Performance
Image Source: Zacks Investment Research

Yet, despite this strong run, the stock remains well below the 52-week high of $13.59, closing its last day at $8.52. This raises a key question for investors: has the easy money already been made, or does BlackBerry still offer meaningful upside?

BB: Continued Execution MomentumBlackBerry delivered a strong start to fiscal 2027 with first-quarter revenues marking a 26% year-over-year increase. Profitability was equally impressive, with adjusted EBITDA more than doubling to $36 million. BlackBerry also reported positive GAAP net income for the fifth consecutive quarter

Image Source: Zacks Investment Research

Management highlighted that both its core segments — QNX and Secure Communications — achieved “Rule of 40” performance, reflecting a combination of strong growth and profitability.

The company also generated positive free cash flow, even in a seasonally weaker quarter. 

The balance sheet remains strong, with $423 million in cash and investments and continued repurchases reinforce capital allocation discipline.

BlackBerry repurchased 2.6 million shares during the quarter for approximately $10 million. Since its launch in May last year, the company has bought back 18 million shares totaling $17 million. Last month, BlackBerry renewed and expanded its share repurchase program, authorizing the buyback of approximately 27 million additional shares.

QNX: The Core Growth EngineQNX remained the key catalyst, with revenues climbing 26% year over year to $72 million. The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.

Management emphasized that these tools are tied to new platforms, including its SDP 8 architecture, which positions the company for multi-year revenue visibility.
Management highlighted partnerships with major chipmakers such as NVIDIA and Qualcomm, underscoring QNX’s role as a foundational software layer in next-generation intelligent systems.

Beyond automotive, General Embedded Markets and Physical AI are emerging as a fast-growing opportunity, expanding QNX’s reach into industrial automation, robotics and medical devices.

Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and drive backlog. While still early, management remains positive about securing a design win within the current fiscal year.

Secure Comms: Headwind to Growth ContributorSecure Communications also delivered a standout quarter, with revenues increasing 24% year over year to $74 million. The segment is witnessing improved performance anchored by government demand, recurring revenues and customer retention. Rising demand for digital sovereignty and cybersecurity modernization by governments across the globe is creating a powerful tailwind.

Underlying metrics such as annual recurring revenue (“ARR”) and customer retention indicate a steady base. ARR grew 5% to $220 million, with a healthy dollar-based net retention rate, or DBNRR came in at 92%. 

BB’s Strong OutlookEncouraged by the strong start, BlackBerry now expects total revenues between $594 million and $621 million compared with $584-$611 million projected earlier. Adjusted EBITDA is projected between $119 million and $139 million.

QNX revenues are expected in the range of $295-$312 million and adjusted EBITDA at $74-$86 million. It expects Secure Communications revenues of $270-$280 million and adjusted EBITDA of $57-$65 million. Licensing & Other revenues are expected to be roughly $29 million.

The strong start to fiscal 2027 and subsequent outlook revision reinforces that BlackBerry’s turnaround strategy is gaining traction.

However, the path is not without challenges. Secure Communications remains exposed to deal-timing variability and this could impact performance. In addition, some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk. Heavy reliance on the automotive industry is a concern. The QNX platform remains heavily exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. BlackBerry faces increasing competitive pressures in both QNX and cybersecurity businesses.

Within QNX, it faces Wind River (VxWorks) and Alphabet’s (GOOGL - Free Report) Android Automotive OS. The cybersecurity business is pitted against CrowdStrike (CRWD - Free Report) , Palo Alto Networks (PANW - Free Report) and a host of other cybersecurity companies.

Image Source: Zacks Investment Research

Given all this, the estimates for the current fiscal year have been revised downward over the past 60 days.

What to Make of BB’s Premium Valuation?After a sharp rally, valuation becomes a key consideration.

Image Source: Zacks Investment Research

In terms of the forward 12-month price/earnings ratio, BB is trading at 43.83X, way higher than the Internet-Software sector’s multiple of 27.32X. The premium appears somewhat justified given the company’s improving fundamentals and long-term growth prospects.  

In comparison, GOOGL trades at a forward 12-month P/E multiple of 21.86, while CRWD and PANW are trading at multiples of 144.45X and 91.99X, respectively.

Shares of GOOGL, CRWD and PANW have gained 19.3%, 72.8% and 88.4%, respectively, year to date.

Investment View: Here’s Why BB Is Still a BuyBB currently carries a Zacks Rank #2 (Buy).

Strong QNX momentum, emerging opportunities in the GEM space and a resurgent Secure Communications segment all point to meaningful long-term potential. With significant gains already, the buying opportunity may no longer be as attractive as earlier, but for investors with a long-term horizon, BlackBerry’s transformation suggests that the rally may not be over just yet.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WATERLOO, ON / ACCESS Newswire / July 29, 2026 / BlackBerry Limited (NYSE:BB)(TSX:BB) announced today that John Giamatteo, Chief Executive Officer, and Tim Foote, Chief Financial Officer, will participate in a fireside chat and meet with investors at Canaccord Genuity's 46th Annual Growth Conference.

Canaccord Genuity's 46th Annual Growth Conference

Wednesday, August 12, 2026, at 10:30 a.m. EDT

Register here for the live stream.

A replay of the event will be available on BlackBerry's investor relations website at BlackBerry.com/Investors.

About BlackBerry

BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.

BlackBerry. Safe. Certified. Secure

For more information, visit BlackBerry.com and follow @BlackBerry.

Trademarks, including but not limited to BLACKBERRY and EMBLEM Design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.

Investor Contact:

BlackBerry Investor Relations
+1 (519) 888-7465
[email protected]

Media Contact:

BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

###

SOURCE: BlackBerry

BlackBerry stock price has pulled back in the past two weeks in New York and Toronto. It dropped to $8.83 on Monday, down by 35% from its highest point this year. Even so, it is one of the best-performing stocks as it jumped by over 130% this year as investors cheer its turnaround and its positioning in the AI and robotics market.

BlackBerry, a company that once played a big role in the smartphone industry, has done well in the past few months as the turnaround efforts by John Giamatteo continued paying off. 

This recovery has been helped by its QNX business, which provides a real-time operating system used in connected and autonomous vehicles. Its system is now embedded in over 275 million vehicles.

At the same time, investors believe that it is one of the top players in the AI and robotics market, especially after its partnerships with companies like Nvidia, Qualcomm, and Arm.

BlackBerry stock jumped after it reported upbeat first-quarter results, indicating its business was doing relatively well. Its revenue jumped by 26% to $152.9 million, with its gross margin growing by 4 percentage points.

The company’s growth was largely driven by its QNX segment, whose revenue rose by 26% to $72.3 million. QNX expanded its partnership with Nvidia to advance safety-critical AI across robotics, medical, and industrial systems.

Its secure communications revenue soared by 24% to $73.6 million. BlackBerry made $7 million from licensing.

The company reached several major milestones in the quarter, including achieving FedRAMP Class D recertification for the BlackBerry AtHoc solution.

This certification will strengthen its position for US government contracts.

Still, there are concerns about BlackBerry shares. One of the key concerns is whether it can sustain its organic growth.

Yahoo Finance data shows that its second-quarter revenue will come in at $145.53 million, up by 12.2% from the same period last year. This will mark a deceleration from the previous quarter.

For the year, the company’s revenue is expected to be $614 million, up by 12% YoY. It is then expected to hit $678 million next year, up by 10% YoY. 

Another concern, which may explain the recent pullback, is valuation. The stock has become expensive after this year's rally.

Data shows that the forward price-to-earnings ratio has moved to 78, much higher than most companies, including popular names like Nvidia and Micron. 

BB stock price chart | Source: TradingView

The weekly chart shows that the BB stock price has pulled back in the past few days, moving from a high of $13.57 to the current $8.83. 

This retreat is happening as investors book profits after the stock surged from last year’s low of $1.96 to a high of $13.57. It remains substantially above the 50 and 200 moving averages.

Therefore, there is a risk that mean reversion will pull it much lower in the near term. If this happens, the stock will drop towards the 50 EMA level of $5.9 as traders wait for its second quarter earnings report.

READ MORE: BlackBerry stock hits 52-week high: take profit or let it run?

Delivers independently validated, sovereign-grade secure communications trusted by governments worldwide to protect mission-critical voice, messaging, file sharing, and operational coordination.

WATERLOO, ON / ACCESS Newswire / July 21, 2026 / BlackBerry® Secure Communications, a division of BlackBerry Limited (NYSE:BB)(TSX:BB) today announced that BlackBerry® SecuSUITE® Server 6.0 and Client 6.0 have been officially relisted as certified products under the International Common Criteria (CC), conforming to the latest NIAP Protection Profiles. This certification reinforces BlackBerry's leadership in secure communications and highlights its commitment to internationally recognized security standards.

Governments are under increasing pressure as mobile communications become central for advanced state-sponsored surveillance. The exploitation of international mobile networks to intercept voice and SMS traffic, combined with the growing use of spyware to compromise widely adopted consumer communication apps, is creating significant exposure. As adversaries enhance their monitoring capabilities and refine mobile exploitation techniques, the demand for independently validated secure communications solutions for national resilience continues to rise.

"The SecuSUITE solution's renewed certification underscores BlackBerry's commitment to sovereign-grade security," said Christoph Erdmann, Senior Vice President and Managing Director, Secusmart at BlackBerry. "As espionage and interception threats grow, governments and enterprises need trusted solutions to protect their most sensitive communications."

Governments and organizations in defense and critical infrastructure increasingly prioritize secure communications as a cornerstone of national security. As a core pillar of BlackBerry Secure Communications, SecuSUITE is backed by certifications such as NIAP, NATO Restricted, BSI, and CSfC, empowers high-risk sectors to confidently secure voice, messaging, file-sharing, and crisis coordination. Trusted by NATO, all G7 governments and most G20 members, SecuSUITE protects sensitive conversations and large-scale operations worldwide.

Learn more about BlackBerry SecuSUITE here and follow @BlackBerry Secure Communications.

About BlackBerry

BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.

For more information, visit BlackBerry.com and follow @BlackBerry.

Media Contacts:

BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

SOURCE: BlackBerry

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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BlackBerry (BB 3.36%) has reinvented itself from a smartphone company to a key player in physical AI -- AI that interacts with the physical world -- and the stock's 180% year-to-date surge through July 13 isn't a meme rally like its brief moment in 2021. BlackBerry's QNX software helps robots interact with the world safely and effectively. That's a critical feature for autonomous vehicles, drones, and humanoid robots.

The company has been securing partnerships and agreements with Nvidia, BMW, and the federal government. That's just the beginning, which makes now the right time to assess BlackBerry's long-term potential for investors.

Image source: Getty Images.

Winning deals now that will be transformative later QNX isn't speculative. The software is already powering BlackBerry to meaningful growth and profits, and more than 275 million vehicles on the road use this technology. The company reported 26% year-over-year revenue growth in its fiscal 2027 first quarter (the three months ended May 31, 2026) and achieved its first fiscal quarter of positive operating cash flow in nine years, excluding a patent sale in fiscal 2024.

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"We are particularly encouraged by the multiyear growth opportunities ahead in software-defined vehicles, as well as broad opportunities in the general embedded market, especially physical AI," BlackBerry CEO John J. Giamatteo told investors.

While BlackBerry is already positioned to post significant sales growth thanks to autonomous vehicles, the Nvidia partnership showcases the company's true potential. The QNX OS (operating system) was integrated with Nvidia IGX Thor and the Nvidia Halos Safety Stack, which will assist with physical AI across robotics, medical, and industrial systems.

The global humanoid robot market alone may be enough for BlackBerry to become a long-term wealth multiplier. That market is expected to maintain a 50% compound annual growth rate through 2034 and become a $165 billion industry in the process, according to Fortune Business Insights.

The backlog is steadily growing BlackBerry wrapped up its fiscal 2022 with a $460 million backlog for QNX, and that backlog had more than doubled by the end of fiscal 2026, reaching $940 million.

Revenue for this critical segment has been accelerating as well. BlackBerry's QNX software delivered 20% year-over-year revenue growth in its fiscal 2026 fourth quarter. That growth rate jumped to 26% in BlackBerry's fiscal 2027 first quarter.

BlackBerry is currently guiding for $607.5 million in fiscal 2027 revenue, with approximately half of that coming from QNX. The company reported $549.1 million in fiscal 2026 revenue, so that would be 10.6% year-over-year growth if it hits its estimate. That's a big improvement from the company's 3% year-over-year revenue growth in its fiscal 2026.

Financials are already moving in the right direction, and BlackBerry's positioning in the physical artificial intelligence industry suggests revenue can continue to accelerate in the years ahead. That setup can help BlackBerry continue to deliver on its recent gains.

Key Takeaways BlackBerry says QNX's GEM segment is expanding beyond automotive into safety-critical embedded markets.BB secured a royalty commitment and expanded a customer relationship through its latest SDP 8 platform.BlackBerry says its strongest robotics pipeline yet supports long-term Physical AI growth opportunities. BlackBerry Limited (BB - Free Report) continues to see growing opportunities for its QNX business across robotics and industrial automation through its General Embedded Market (GEM) strategy. The company stated that GEM remains the fastest-growing segment within QNX, expanding its long-term opportunity beyond automotive into robotics, industrial automation, medical devices and other safety-critical applications.

During first-quarter fiscal 2027, BlackBerry secured a significant royalty commitment from a leading semiconductor equipment manufacturer and expanded its relationship with Luminex through an upgrade to its latest SDP 8 platform. These wins reflect continued progress in expanding QNX adoption and deployment across embedded markets.

The company highlighted Physical AI as a key long-term growth driver. As intelligent machines become increasingly autonomous and operate around people, BlackBerry said that safety, security, reliability and real-time determinism become more important. QNX technology is deterministic and safety certified, making it suitable for systems where failure is not an option. BlackBerry noted that automotive has served as a proving ground for Physical AI, describing modern vehicles as robots on wheels and emphasizing QNX’s role in supporting advanced autonomous and safety-critical systems.

BlackBerry also stated that its experience in the automotive market positions it well for opportunities in robotics and industrial automation. The company believes the capabilities it developed for automotive applications, including real-time determinism, safety certification, security and reliability, translate well to these adjacent markets. Management identified robotics, industrial automation and medical instrumentation as the three primary GEM categories where QNX’s technology is well aligned with customer requirements.

On the last earnings call, the company stated that its pipeline across robotics and industrial automation is the strongest it has been, with encouraging opportunities developing in both markets. Management expects to report additional wins as they materialize and noted that GEM continues to be the fastest-growing segment within QNX.

Taking a Look at BB’s CompetitorsCrowdStrike (CRWD - Free Report) continues to strengthen its growth pipeline through product innovation, AI expansion and broader platform adoption. The company introduced Charlotte AI AgentWorks, a no-code platform developed with AWS, NVIDIA and OpenAI, along with Agentic MDR to automate security workflows. Falcon Data Security expanded protection across endpoints, cloud, SaaS and AI environments. Management highlighted a record second-quarter pipeline and increased partner engagement, supporting demand across enterprise and public sector customers. Falcon Flex also gained momentum, adding more than 300 accounts in the first quarter and reaching more than $1.9 billion in ending ARR, reflecting stronger customer commitments and expanding platform adoption.

Palo Alto Networks (PANW - Free Report) continues to benefit from higher cybersecurity priority as enterprises deploy AI and look to consolidate vendors onto fewer platforms. Platformization is translating into larger commitments, supported by expanding next-generation security ARR and RPO, and management guidance implies continued growth in the fourth quarter of fiscal 2026. Momentum in Network Security, SASE and Prisma AIRS, along with early execution on the CyberArk and Chronosphere integrations, supports the long-term revenue mix shift toward recurring software and free cash flow. For fiscal 2026, Palo Alto Networks now expects revenues in the range of $11.41 billion to $11.42 billion, suggesting year-over-year growth of 24%.

BB Price Performance, Valuation & EstimatesShares of BlackBerry have surged 25.6% in the past month compared with the Internet-Software industry’s growth of 5.3%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, BB is trading at 8.67, higher than the industry’s multiple of 4.71.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways BlackBerry topped Q1 revenue guidance, expanded profitability and raised full-year revenue and EBITDA outlook.BB sees QNX driving growth through vehicles, robotics, industrial AI and its expanded NVIDIA partnership.BlackBerry posted positive Q1 operating cash flow and expanded buybacks; Secure Communications grew 24%. After reporting a strong first-quarter fiscal 2027, BlackBerry Limited (BB - Free Report) saw its shares surge roughly 22% as investors rewarded better-than-expected revenue, expanding profitability and improved full-year guidance. BB’s shares have gained 265.6% in the past three months compared with the Internet Software industry’s rise of 5%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered gains of 23.5% and 13.6%, respectively.

Image Source: Zacks Investment Research

BB competes with much larger cybersecurity firms, such as CrowdStrike Holdings, Inc. (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) . PANW has gained 109%, while CrowdStrike is up 91.2% over the same time frame. CrowdStrike is leveraging strong cybersecurity demand through the consolidation of its Falcon platform and growing subscription adoption. Palo Alto Networks offers network security solutions to enterprises, service providers and government entities worldwide.

BB currently trades at $12.65, almost on par with its 52-week high of $12.93. The key question for investors now is whether the rally reflects the beginning of a sustained momentum or whether most of the good news is already priced into the stock. Let’s unwrap below.

BB’s Fiscal Q1 Exceeds ExpectationsBlackBerry reported a robust start to fiscal 2027 with revenue of $153 million, exceeding guidance, driven by growth in QNX and Secure Communications, with adjusted EBITDA more than doubling year over year. Beyond automotive software, management is increasingly discussing opportunities in industrial AI and physical AI. BlackBerry is positioning QNX as a foundational operating platform not only for vehicles but also for robotics, industrial automation, medical devices, aerospace and intelligent infrastructure.

The company's partnership with NVIDIA (NVDA - Free Report) has evolved from an automotive-focused collaboration into a broader strategic alliance centered on Physical AI and safety-critical software. The relationship began with joint work on NVIDIA's Thor platform and QNX architecture for automotive applications, strengthening over time through successful customer wins and growing trust. Building on this foundation, NVIDIA selected BB as a key partner for its Physical AI safety stack, which is being standardized on QNX. As Physical AI adoption expands across industries, management views this partnership as an evolving growth opportunity with long-term potential.

Another encouraging sign was the return of positive operating cash flow during what is typically BlackBerry's weakest seasonal quarter. It generated roughly $5 million in operating cash flow, marking the first positive fiscal first-quarter operating cash flow in nearly a decade, excluding the effects of patent sales. BB continues to prioritize shareholder returns through share repurchases. It bought back 2.6 million shares in the quarter for approximately $10 million and expanded its buyback program, authorizing up to 27 million additional shares as part of its disciplined capital allocation strategy.

QNX Continues to Drive Growth, Secure Comm RecoversThe primary growth engine remains QNX, BlackBerry's real-time operating system used in software-defined vehicles and other mission-critical embedded systems. QNX effectively delivered a Rule of 50 quarter in the fiscal first quarter, driven by strong revenue growth and profitability. QNX's development license revenue reached an eight-quarter high, reflecting strong investment in future vehicle programs, with most licenses tied to the new SDP 8 platform that supports long-term royalty growth.

It also secured new Automotive and GEM design wins, including ADAS and driver monitoring programs. Beyond automotive, BlackBerry sees significant growth opportunities in robotics, industrial automation, medical devices and Physical AI. Management expects GEM, its fastest-growing business, and Alloy Core to drive meaningful growth, with major customer wins anticipated later this year.

The Secure Communications business remains strong, with $74 million in revenue, a 24% increase and stabilized ARR at $220 million, with a healthy net retention rate of 92%, driven by government demand and large deals. Customer retention, recurring revenue and government demand for Secure Communications solutions continue to show encouraging momentum. A multiyear expansion with Shared Services Canada, driven by rising demand for digital sovereignty and cybersecurity, significantly boosted fiscal first-quarter revenue through the expanded deployment of Secusmart's encrypted communications solutions.

Management cautioned that large government contracts have long sales cycles, making this quarter’s outsized growth unlikely to recur every quarter. Still, Secure Comm is evolving into a stable growth business with upside from major government wins. During the quarter, BlackBerry also secured several renewals, expansions and new customers across government, defense, and regulated industries, including FedRAMP High re-certification for BlackBerry AtHoc, a partnership with The IP Company and a collaboration with TKMS, highlighting continued demand for mission-critical secure communications.

Image Source: Zacks Investment Research

The long-term growth outlook remains positive, with potential for growth rates exceeding previous guidance, driven by pipeline and new opportunities. Strong quarterly execution gave management confidence to increase full-year expectations. BB now expects total revenue of $594–$621 million and adjusted EBITDA of $119–$139 million, driven by higher QNX and Licensing guidance. The company also expects about $100 million in operating cash flow this year, nearly double from the prior levels, with roughly 90% of incremental revenue flowing through to adjusted EBITDA, underscoring its strong operating leverage.

Why Investors Should Remain Cautious About BBDespite the impressive quarter, investors should recognize that several risks remain. BlackBerry faces several headwinds, including long automotive production cycles, as design wins often take three to five years to generate meaningful royalty revenue. Growth also remains exposed to cyclical vehicle demand and potential delays in software-defined vehicle adoption. In addition, intense competition from Linux-based platforms, Android Automotive and proprietary operating systems could pressure market share and require sustained investment in innovation.

BlackBerry's China business faces ongoing geopolitical and regulatory uncertainties. While the company believes its safety certification expertise and local presence help mitigate some risks, evolving trade tensions and policy changes could weigh on growth in the region.

BB’s Estimate Revision TrendsThe Zacks Consensus Estimate for BB earnings for fiscal 2027 has been unchanged over the past 60 days.

Image Source: Zacks Investment Research

BB’s Valuation: Expensive or Reasonable?Regarding the price/book ratio, BB is trading at 9.88, higher than the industry’s multiple of 4.39.

Image Source: Zacks Investment Research

PANW and CrowdStrike are trading at a 12-month price/book multiple of 10.05X and 41.55X, respectively, compared with the Security industry’s multiple of 28.96X.

Although BlackBerry's recent rally makes the stock appear more expensive than it was several months ago, valuation should also be viewed in the context of improving fundamentals. If management continues executing, today's valuation may still prove reasonable for a software company transitioning into a profitable growth phase.

Investment VerdictBlackBerry is emerging as a profitable software business with multiple growth engines. QNX continues to benefit from software-defined vehicle adoption, Secure Communications has returned to healthy growth, cash flow is improving and management is expanding into industrial AI and embedded computing. Although the sharp share-price appreciation may limit near-term upside and increase volatility, BlackBerry still appears attractive for investors with a long-term investment horizon who believe in the continued growth of software-defined vehicles, embedded AI and secure enterprise communications.

Carrying a Zacks Rank #2 (Buy) at present, BB remains an appealing pick for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways BB's QNX saw strong demand across licenses, services, royalties and new automotive and GEM design wins.BB expanded Secure Communications with higher ARR and a broader Shared Services Canada agreement.BlackBerry cited Physical AI, Alloy Kore and key partnerships as drivers of future QNX growth. BlackBerry Limited’s (BB - Free Report) momentum has been supported by strong execution across its QNX and Secure Communications businesses. QNX continued to benefit from long-term trends, including software-defined vehicles, centralized computing, the broader embedded market and Physical AI.

The business reported strength across development licenses, professional services and royalties. Development license revenue reached its highest level in eight quarters, reflecting customer investment in new software platforms built on the latest SDP 8 technology. The company also secured new design wins across automotive and General Embedded Markets (GEM), including advanced driver assistance systems, driver monitoring solutions, commercial vehicles and medical diagnostics, while expanding adoption of its SDP 8 platform.

BlackBerry also highlighted several long-term growth drivers for QNX. GEM remains the company's fastest-growing segment, extending opportunities beyond automotive into robotics, industrial automation, medical devices and other safety-critical applications. The company believes Physical AI will continue to increase demand for technologies that offer safety certification, reliability and real-time determinism.

BlackBerry also continues to make progress with Alloy Kore, which is expected to expand its role from an operating system provider to a platform provider, increasing software content per vehicle and supporting future backlog growth.  Partnerships with NVIDIA Corporation (NVDA - Free Report) , Qualcomm, Arm and other silicon ecosystem leaders continue to strengthen its position across next-generation intelligent systems.

Secure Communications also performed well in first-quarter fiscal 2027, supported by stabilizing fundamentals, improving customer retention and increasing government demand. Revenue exceeded guidance, while annual recurring revenue grew year over year. Growth benefited from the expansion and multiyear extension of its agreement with Shared Services Canada, which increased deployment of Secusmart's encrypted voice, data and video solutions.

The company also secured renewals, expansions and new customer wins across government, defense and regulated industries in North America and Europe. BlackBerry stated that demand remains healthy across both QNX and Secure Communications, supported by a growing pipeline, expanding backlog and continued customer engagement.

Taking a Look at BB’s CompetitorsCrowdStrike (CRWD - Free Report) remains well-positioned to benefit from sustained cybersecurity demand as customers consolidate tools on the Falcon platform and expand module adoption through subscriptions and Falcon Flex. AI-led launches, including agent-based workflows, broader data and browser protection, and deeper partnerships across the cloud ecosystem, support cross-sell and renewals over time. Recent acquisitions in identity and browser runtime security extend the platform’s addressable use cases, while the company’s liquidity and cash generation provide the flexibility to keep investing. The company also raised its fiscal 2027 net new ARR growth guidance by 520 basis points at the midpoint and updated its full-year guidance to include total revenues of $5.91-$5.95 billion and ARR of $6.53-$6.55 billion.

Palo Alto Networks (PANW - Free Report) continues to benefit from higher cybersecurity priority as enterprises deploy AI and look to consolidate vendors onto fewer platforms. Platformization is translating into larger commitments, supported by expanding next-generation security ARR and RPO, and management guidance implies continued growth in the fourth quarter of fiscal 2026. Momentum in Network Security, SASE and Prisma AIRS, along with early execution on the CyberArk and Chronosphere integrations, supports the long-term revenue mix shift toward recurring software and free cash flow. For fiscal 2026, Palo Alto Networks now expects revenues in the range of $11.41 billion to $11.42 billion, suggesting year-over-year growth of 24%.

BB Price Performance, Valuation & EstimatesShares of BlackBerry have surged 27.8% in the past month against the Internet-Software industry’s decline of 9.9%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, BB is trading at 9.74, higher than the industry’s multiple of 4.39.

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The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been unchanged over the past 60 days.

Image Source: Zacks Investment Research

BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways BlackBerry is expanding QNX beyond automotive into robotics, healthcare and industrial automation.BB sees Physical AI and software-defined vehicles increasing demand for secure real-time systems.BlackBerry strengthened QNX through new design wins, partner ecosystem and Secure Communications growth. Several long-term technology trends are converging around embedded software, cybersecurity and intelligent connected systems, creating new opportunities for companies that provide the foundational software powering these environments. As AI increasingly moves from the cloud into physical devices, demand is rising for secure, deterministic operating systems capable of supporting safety-critical applications.

BlackBerry Limited (BB - Free Report) is positioning itself at the center of these structural shifts through its QNX business, which has evolved well beyond its automotive roots. While software-defined vehicles remain a major growth driver, the company is also expanding into robotics, industrial automation, healthcare and other embedded markets where reliability, security and real-time performance are essential. Combined with its Secure Communications business and growing ecosystem of technology partners, BlackBerry is building a broader platform designed to capitalize on the next generation of intelligent connected systems.

BB Expands Beyond AutomotiveAlthough automotive software continues to represent QNX's largest market, BlackBerry is steadily reducing its dependence on any single industry by expanding across the broader General Embedded Markets (GEM).

Management describes GEM as QNX's fastest-growing business, encompassing robotics, industrial automation, medical devices, semiconductor equipment and other safety-critical embedded applications. While these projects are generally smaller than automotive programs, their higher volume significantly expands BlackBerry's long-term addressable market.

Recent design wins illustrate this diversification. During the fiscal first quarter, BlackBerry secured a royalty commitment from a leading semiconductor equipment manufacturer while expanding its existing relationship with medical diagnostics company Luminex through an upgrade to the latest SDP 8 platform. These wins complement continued automotive momentum and demonstrate growing demand across multiple embedded industries.

Expanding beyond automotive also helps diversify future royalty streams. Rather than relying exclusively on vehicle production cycles, BlackBerry is building exposure to multiple industries that increasingly require secure, safety-certified operating systems as digital transformation accelerates.

BlackBerry Benefits From Physical AIUnlike traditional generative AI applications that primarily process information, Physical AI enables autonomous machines to perceive, make decisions and interact safely with the physical world. These systems require deterministic operating systems that deliver predictable responses under all operating conditions—a capability that distinguishes QNX from conventional software platforms.

Management believes automotive has effectively become the proving ground for Physical AI because modern vehicles function as highly sophisticated robots operating in complex environments. As robotics, autonomous industrial equipment and intelligent medical devices become more capable, many of the same software requirements—including real-time performance, functional safety and cybersecurity—will become increasingly important.

Software-defined vehicles and centralized computing architectures further strengthen this opportunity. Automakers are consolidating dozens of electronic control units into centralized computing platforms that require highly reliable operating systems capable of managing multiple safety-critical domains simultaneously. QNX has continued expanding design wins across advanced driver assistance systems, centralized compute platforms and commercial vehicles, reinforcing its leadership in this transition.

BlackBerry also views Alloy Core as a potential long-term catalyst. Rather than serving only as the operating system, Alloy Core aims to position BlackBerry as a broader platform provider that simplifies software-defined vehicle development. If widely adopted, Alloy Core could substantially increase software content per vehicle, expand average selling prices and drive larger future royalty streams.

BB Gains From Trusted PartnershipsBlackBerry's competitive position is strengthened by an expanding ecosystem of strategic partners and longstanding customer relationships.

Within QNX, collaborations with NVIDIA (NVDA - Free Report) , Qualcomm (QCOM - Free Report) and Arm position the operating system alongside many of the industry's leading semiconductor platforms. These relationships help integrate QNX into next-generation intelligent edge systems while serving as important sales channels for future deployments across automotive, robotics and broader Physical AI markets.

Recent design wins further reinforce the company's position in mission-critical environments. During the latest quarter, BlackBerry secured new automotive programs spanning advanced driver assistance systems, driver monitoring systems, commercial vehicles and centralized computing platforms while also expanding deployments of its latest SDP 8 technology. Development license revenue reached its highest level in eight quarters, providing an encouraging leading indicator for future royalty growth as customers begin developing new software platforms years before production begins.

Beyond QNX, BlackBerry continues leveraging decades-long relationships with governments, defense organizations and highly regulated industries through its Secure Communications business. Growing demand for digital sovereignty and cybersecurity modernization has supported new customer wins and contract expansions across North America and Europe, reinforcing the company's reputation in environments where security certifications and reliability remain critical competitive advantages.

How BB Ratings Support the Trend StoryBlackBerry currently carries a Zacks Rank #2 (Buy), reflecting improving earnings expectations and constructive near-term sentiment following stronger operating performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company also earns a Growth Score of A, supported by expanding QNX opportunities, improving profitability, stronger cash generation and multiple long-term technology trends that continue to broaden its addressable markets. These characteristics align well with investors seeking companies benefiting from secular growth themes.

At the same time, BlackBerry's Value Score of F and Momentum Score of F suggest that investors should remain mindful of valuation after the stock's substantial 2026 rally. Together, these produce an overall VGM Score of D, indicating that much of the improving outlook is already reflected in the current share price.

Taken together, BlackBerry's ratings support a balanced investment case. Improving earnings expectations and expanding opportunities across Physical AI, software-defined vehicles and embedded systems reinforce the company's long-term growth potential. However, investors should weigh those favorable industry trends against richer valuation metrics and the execution required to fully capitalize on these emerging markets.

Key Takeaways BlackBerry posted stronger first-quarter results with higher margins, cash flow and raised guidance.BB continues expanding QNX across software-defined vehicles, embedded markets and Secure Communications.BlackBerry's richer valuation means future gains hinge on sustained execution and profitable growth. BlackBerry Limited (BB - Free Report) has been one of the market's biggest turnaround stories in 2026, with its shares surging as investors increasingly recognize the company's successful transformation into a software and cybersecurity business. Strong execution across QNX and Secure Communications, improving profitability and higher financial guidance have fundamentally changed sentiment surrounding the stock.

BB’s shares have gained 148.9% in the past year, significantly outpacing the Internet Software industry’s fall of 23.6%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered gains of 33.2% and 21.8%, respectively.

Image Source: Zacks Investment Research

However, after such a dramatic rally, the investment question has shifted. Rather than asking whether BlackBerry's business is improving, investors must determine whether those operational gains are sufficient to justify today's valuation. While the company continues to benefit from several long-term growth catalysts, expectations have also risen considerably, making execution increasingly important.

BlackBerry Delivers Better ResultsBlackBerry's latest quarterly results demonstrated that its turnaround is translating into stronger financial performance.

Fiscal first-quarter 2027 revenue increased 26% year over year to approximately $153 million, exceeding the high end of management's guidance. Adjusted earnings per share came in at 4 cents, while adjusted EBITDA more than doubled from the prior-year period to approximately $36 million, representing a 24% margin. Gross margin expanded four percentage points year over year to roughly 79%, highlighting improving operating leverage as higher-margin software revenue becomes a larger portion of the business.

Cash generation also improved meaningfully. BlackBerry produced approximately $5 million in operating cash flow during what management described as a seasonally weaker quarter and generated positive free cash flow while reporting its fifth consecutive quarter of positive GAAP net income. The company also raised its full-year operating cash flow expectation to approximately $100 million, reinforcing management's confidence that revenue growth is increasingly translating into sustainable profitability.

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Why BB Still Has Growth CatalystsDespite the stock's sharp advance, BlackBerry still has several long-term growth drivers.

QNX remains the company's primary growth engine as automakers continue adopting software-defined vehicle architectures that require increasingly sophisticated operating systems. Development license revenue reached its highest level in eight quarters, an encouraging indicator because these licenses are typically purchased years before production royalties begin. Management also continues to expand QNX's footprint across advanced driver assistance systems, centralized vehicle computing and commercial vehicles.

Beyond automotive, General Embedded Markets (GEM) represent another attractive opportunity. Robotics, industrial automation, medical devices and semiconductor equipment all require safety-certified embedded operating systems; while emerging Physical AI applications could significantly expand BlackBerry's addressable market over time. Alloy Core also offers the potential to increase software content per vehicle, raising average selling prices and expanding future royalty revenue if customer adoption accelerates.

Licensing has also improved, with fiscal first-quarter revenue exceeding expectations due to stronger licensing agreements and one-time deals. Meanwhile, Secure Communications continues benefiting from digital sovereignty initiatives, cybersecurity modernization and increasing government demand for encrypted communications. Stable recurring revenue, healthy customer retention and opportunities for additional large government contracts provide another avenue for long-term growth.

What Could Slow BlackBerryWhile the long-term outlook has improved, several risks remain.

Macroeconomic uncertainty continues to affect automotive customers, with some manufacturers delaying development programs because of supply chain challenges, tariff concerns and broader economic caution. Since QNX royalties ultimately depend on vehicle production, prolonged delays could slow revenue realization even if design wins remain healthy.

Secure Communications also faces inherent variability because government procurement cycles are unpredictable. Large contracts often require lengthy approval processes, meaning quarterly revenue can fluctuate significantly depending on the timing of major awards. Geopolitical changes across the United States, Canada, Germany and other key markets could also delay procurement decisions or alter government spending priorities.

Competition remains another important consideration. BlackBerry operates in rapidly evolving markets where continuous investment in research and development is necessary to maintain technological leadership. The company competes against well-capitalized software and cybersecurity providers, including CrowdStrike (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) , requiring ongoing innovation to preserve its competitive position.

BB Trades at a Premium ValuationBlackBerry's improving fundamentals have been accompanied by a significantly richer valuation following the stock's powerful 2026 rally.

The stock currently trades at a forward 12-month P/E of 76.62, compared with the sub-industry average of 24.93. Those multiples represent a substantial premium compared with where the company traded before investors began pricing in its improving growth outlook.

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The current Zacks price target of $13 implies additional upside from recent trading levels but suggests a more measured return potential than earlier in the turnaround. While BlackBerry's operational progress clearly supports a higher valuation than in prior years, investors are now paying for anticipated future growth rather than simply a restructuring story.

As a result, future share appreciation will likely depend more on sustained execution across QNX, Secure Communications and cash generation than on multiple expansion alone.

How BB's Ratings Fit Investor DecisionsBlackBerry currently carries a Zacks Rank #2 (Buy), reflecting improving earnings expectations and constructive near-term sentiment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also earns a Growth Score of A, supported by accelerating revenue growth, expanding margins and improving operating cash flow. However, its Value Score of F indicates that shares no longer appear inexpensive after the rally, while its Momentum Score of F suggests recent price action already reflects much of the improving outlook. Together, these produce an overall VGM Score of D.

Taken together, the ratings reinforce a balanced investment case. BlackBerry continues to benefit from strong execution, expanding QNX opportunities and improving financial performance that support a favorable near-term outlook. At the same time, richer valuation metrics mean investors should expect future returns to depend increasingly on the company's ability to sustain profitable growth rather than simply improving sentiment.

For investors with a long-term horizon, BlackBerry's transformation appears increasingly credible. However, after its massive 2026 rally, the stock now offers a more balanced risk-reward profile, where continued operational execution will be essential to justify further upside.

BlackBerry Ltd (BB) has undergone a massive fundamental transformation, culminating in its Q1 earnings beat on June 24th. Driven by a 26% year-on-year increase in the QNX software division and the first positive operating cash flow in nine years, BB shares hit a new 52-week high of $12.15 on Monday morning.

Shares of BlackBerry (BB +10.25%) rose sharply on Friday after the software specialist's earnings topped investors' expectations.

Image source: Getty Images.

BlackBerry is now an AI play BlackBerry's revenue jumped 26% year over year to $152.9 million in its fiscal 2027 first quarter, which ended on May 31.

The former smartphone maker now provides a secure, real-time operating system known as QNX that's used in fast-growing markets like automotive technology, industrial automation, medical devices, and robotics.

BlackBerry's QNX revenue climbed 26% to $72.3 million. The division is also becoming more profitable as it expands, with its adjusted gross margin improving by 5 percentage points to 86%.

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"In QNX, we continue to benefit from the long-term trends we have discussed for several quarters, including software-defined vehicles, centralized compute, the general embedded market, and physical AI," CEO John Giamatteo said during a conference call with analysts.

All told, BlackBerry's adjusted net income soared 135% to $25.4 million, or $0.04 per share. That bested Wall Street's estimates, which had called for per-share profits of $0.03.

Management sees more growth ahead BlackBerry guided for full-year revenue of $594 million to $621 million, with adjusted earnings per share of $0.16 to $0.20.

"Demand across our markets remains healthy," Giamatteo said. "Customer engagement is strong, our backlog continues to expand, giving us confidence in our outlook and in the disciplined execution that gets us there."

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy.

Key Takeaways BlackBerry beat fiscal Q1 EPS estimates as revenue rose 26% year over year; it raised fiscal 2027 guidance.BB lifted QNX and Licensing outlook after strong execution and reaffirmed Secure Communications growth.BlackBerry posted its first cash-positive fiscal Q1 in nine years and repurchased 2.6 million shares. BlackBerry Limited (BB - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share.

BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth. During the quarter, BlackBerry delivered strong execution across both QNX and Secure Communications, with each achieving Rule of 40 performance through a combination of solid growth and profitability. QNX continues to gain traction for software-defined vehicles, robotics, industrial automation and physical AI, while Secure Comm remains a dependable source of high-margin revenue backed by government and defense customers.

After a strong start to fiscal 2027, BB raised its full-year QNX revenue guidance to $295–$312 million and adjusted EBITDA view to $74–$86 million. Secure Comm continues to be a stable and growing business. The company reaffirmed its full-year revenue guidance of $270–$280 million, representing 4–8% growth. For Licensing, it raised its guidance to approximately $29 million in revenue and $25 million in adjusted EBITDA.

Fueled by improved outlook for QNX and Licensing, BlackBerry raised fiscal 2027 guidance to $594–$621 million in revenue and $119–$139 million in adjusted EBITDA. Earlier, it expected revenue to grow 6–11% to $584–$611 million, with adjusted EBITDA of $110–$130 million. The 90%flow-through of incremental revenue to adjusted EBITDA highlights the strong operating leverage of BlackBerry's business model. Non-GAAP EPS is now estimated at 16-20 cents, up from the prior expected 15–19 cents. Stronger cash conversion is expected to drive full-year operating cash flow to about $100 million, nearly double.

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Following stronger-than-expected momentum and bolstered guidance, BB’s shares rose 20% in trading and closed at $10.34 yesterday. The stock has gained 119% over the past year, outperforming the Zacks Internet-Software industry’s fall of 25%.

BB’s Fiscal Q1 in DetailsRevenue from the QNX business rose 26% to $72.3 million, exceeding the upper end of guidance ($60-$64 million). QNX's strong results were driven by software-defined vehicles and centralized computing, record development license revenue (the highest in eight quarters) and growing opportunities in Physical AI, supported by a robust silicon ecosystem and the Alloy platform.

Secure Communication revenues increased 24% to $73.6 million, nearly matching QNX's growth rate. The segment benefited from strong government demand fueled by digital sovereignty, cybersecurity modernization and secure communications initiatives. The solid performance was led by an expansion and multi-year extension with Shared Services Canada, including a larger deployment of Secusmart's encrypted communications solutions, resulting in the business's best performance in several years.

While large government contracts cause quarterly fluctuations due to long sales cycles, the business continues to develop into a steady growth driver. During the quarter, BB also secured several renewals, expansions and new customer acquisitions across government, defense and regulated industries.

Licensing revenue reached $7 million, up from $4.7 million in the prior-year quarter and surpassed guidance of around $6 million, driven by stronger-than-expected revenue from existing agreements and several new one-time licensing deals.

BB’s Margin PerformanceAdjusted gross margin was 78.6%, up from 74.6% in the year-ago period. QNX gross margin improved 5 percentage points (pp) year over year to 86%. Secure Comms adjusted gross margin expanded by roughly 2 pp year over year to 72%, benefiting from a more favorable software revenue mix.

Adjusted operating expenses totaled $88 million, up from $79.9 million in the previous-year quarter.

Adjusted EBITDA more than doubled year over year, reaching approximately $36 million and exceeding expectations ($14-$22 million). QNX’s adjusted EBITDA for the quarter came in much above the high end of guidance ($4-$8 million) at $19.3 million, up 52% year over year. Secure Communications’ adjusted EBITDA beat expectations ($14-$18 million) of $20.2 million, up 110% year over year.

The licensing business generated $6.2 million in adjusted EBITDA for the quarter, up from $3.8 million in the previous year quarter.

BB’s Cash Flow & LiquidityFor the quarter that ended on May 31, 2026, BlackBerry generated $4.6 million in operating cash flow, marking its first cash-positive fiscal first quarter in nine years (excluding special items related to patent sales) against usage of $18 million a year ago.

Free cash flow was $1.7 million at the end of the quarter against an outflow of $18.9 million in the previous quarter.

The company ended the quarter with $422.9 million in cash and investments compared with $432.4 million as of Feb. 28, 2026.

BlackBerry repurchased 2.6 million shares during the quarter for approximately $10 million. Since its launch in May last year, the company has bought back 18 million shares totaling $17 million. Last month, it renewed and expanded its share repurchase program, authorizing the buyback of approximately 27 million additional shares. The program remains a key tool in the company's disciplined, shareholder-focused capital allocation strategy.

BB’s Fiscal Q2 GuidanceFor the fiscal second quarter, BlackBerry expects QNX revenue of $70–$75 million and adjusted EBITDA of $16–$21 million. It expects Secure Communications revenue of $57–$63 million and adjusted EBITDA of $5–$10 million. Licensing & Other revenues are expected to be roughly $10 million.

It has guided total revenue of $137–$148 million and adjusted EBITDA of $20–$30 million. Non-GAAP EPS is expected in the range of 3-4 cents.

BlackBerry anticipates positive operating cash flow of breakeven to $10 million.

BB’s Zacks RankAt present, BlackBerry carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Recent CompaniesGuidewire Software, Inc. (GWRE - Free Report) reported non-GAAP earnings per share of 82 cents for the third-quarter fiscal 2026 compared with 55 cents in the same period last year. Earnings surpassed the Zacks Consensus Estimate of 79 cents. The company reported revenues of $372.5 million, up 26.9% year over year. Revenues beat the Zacks Consensus Estimate by 4.6%. The figure also surpassed the company’s guided range of $352-$358 million. This uptick was driven by solid momentum in Subscription and support and Services segments.

Micron Technology (MU - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $25.11 per share, beating the Zacks Consensus Estimate by 17.39%. The company reported earnings of $1.91 per share in the year-ago quarter. Revenues soared 345.7% year over year to $41.46 billion and surpassed the Zacks Consensus Estimate by 12.91%. Revenues jumped 73.7% sequentially. The upside was driven by robust AI-led memory demand, with data center revenues exceeding $25 billion, an annualized run rate of more than $100 billion.

McCormick & Company, Incorporated (MKC - Free Report) reported second-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. Adjusted earnings rose 15.9% to 80 cents per share from 69 cents in the year-ago quarter. The metric beats the Zacks Consensus Estimate of 69 cents per share. The increase was driven by elevated adjusted operating income and a reduced adjusted effective tax rate, partially offset by weaker unconsolidated income and increased interest expense.

Key Takeaways BB posted y/y 26% revenue growth in Q1, with adjusted EBITDA rising to $36.3M from $14.9M.QNX revenues rose 26% as BlackBerry cited wins in automotive, embedded markets and Physical AI demand.BlackBerry lifted FY27 revenue and EBITDA guidance, driven by higher QNX and licensing expectations. BlackBerry Limited (BB - Free Report) used its first-quarter fiscal 2027 earnings call to press a forward-looking message rather than dwell on the headline beat. Management framed the quarter as evidence that its turnaround has moved from cost repair to profitable growth.

That mattered because the results came with stronger cash generation, higher QNX and licensing expectations, and fresh emphasis on longer-cycle opportunities in software-defined vehicles, embedded systems and government secure communications.

BB Starts FY27 With LeverageChief executive officer John Giamatteo said that both QNX and Secure Communications delivered Rule of 40 performance in the quarter, reinforcing management’s argument that the portfolio is now producing healthier growth with stronger profitability.

Revenues rose 26% year over year to $152.9 million, whereas adjusted EBITDA climbed to $36.3 million from $14.9 million. Adjusted EPS was $0.04, beating the Zacks Consensus Estimate of $0.03 by 33.3%, and revenues surpassed the Zacks Consensus Estimate of $136.10 million by 12.3%.

Chief financial officer Tim Foote also pointed to a positive operating cash flow of $4.6 million, which management described as BlackBerry’s first cash-positive fiscal first quarter in nine years, excluding the fiscal 2024 patent sale.

BlackBerry Pushes QNX Beyond AutoGiamatteo spent much of the call on QNX, which generated $72.3 million in revenues, up 26% from a year earlier, with adjusted EBITDA of $19.3 million. He said that development license revenues reached the highest level in eight quarters, which management views as an early signal of royalty growth.

The company highlighted wins spanning automotive and general embedded markets, including ADAS, driver monitoring, commercial vehicles, semiconductor equipment and medical diagnostics. Giamatteo tied that pipeline to growing demand for safety-certified, deterministic software in robotics, industrial automation and what he repeatedly called Physical AI.

Management also gave Alloy Kore unusual prominence. Giamatteo said that the platform could move BlackBerry from operating system supplier to deeper platform provider, lifting software content per vehicle by multiples, and he maintained confidence that a first design win can be secured this fiscal year.

BB Finds Stability in Secure CommunicationsSecure Communications delivered $73.6 million in revenues, up 24% year over year, with adjusted EBITDA of $20.2 million. ARR was stable sequentially at $220 million, whereas dollar-based net retention held at 92%.

Giamatteo said that the quarter showed what the segment can do when a steadier recurring base is paired with a large government award. The biggest contributor was the previously disclosed Shared Services Canada expansion, which drove strong in-quarter revenue recognition tied to sovereign architecture deployment.

He also stressed that these large contracts do not arrive every quarter. Even so, management said that demand trends remain favorable as governments prioritize digital sovereignty, cybersecurity modernization and secure communications infrastructure.

BlackBerry Lifts QNX & EBITDA ViewFoote raised the company’s full-year QNX revenue guidance to $295-$312 million and the QNX adjusted EBITDA guidance to $74-$86 million. Licensing guidance also moved higher, with revenues expected at $29 million and adjusted EBITDA at $25 million.

At the total-company level, BlackBerry sees fiscal 2027 revenues of $594-$621 million and adjusted EBITDA of $119-$139 million. Fiscal second-quarter revenues are projected at $137-$148 million, with an adjusted EPS of $0.03-$0.04 and the operating cash flow between breakeven and $10 million.

Secure Communications’ guidance was not lifted in the same way, which fits management’s message that the business is improving but still subject to quarter-to-quarter variability, depending on deal timing and mix.

BB Q&A Centers on Alloy KoreAnalysts pressed hardest on Secure Communications’ durability and the scale of Alloy Kore. In response to Canaccord Genuity, Giamatteo said that ARR remains the best measure of the segment’s baseline stability, while upside comes from large, lumpy government contracts with long sales cycles.

On Alloy Kore, management sounded more explicit than in prepared remarks. Giamatteo told Canaccord that the platform could increase addressable revenues per vehicle by “hundreds of percents,” while Foote later told Stifel that some existing programs could migrate faster and create backlog uplift.

Questions from Stifel, Raymond James and RBC also drew a consistent message on GEM: it is growing materially faster than automotive from a smaller base, and management expects meaningful wins there this year, even if automotive remains the larger long-term dollar opportunity.

BlackBerry Sticks With Disciplined GrowthThe closing tone was measured rather than celebratory. Giamatteo said that growth will not be linear, but he argued that the company’s long-term value drivers are now better established across QNX, Secure Communications and licensing.

Foote reinforced that posture by linking stronger profitability to operating leverage and by highlighting the company’s $422.9-million cash and investments balance, alongside continued buybacks. That combination left management focused on disciplined execution, capital allocation and backlog expansion rather than near-term quarter management.

Zacks Signals Remain CautiousBB currently carries a Zacks Rank #3 (Hold), with a Value Score of F, a Growth Score of C, a Momentum Score of C and a VGM Score of F. Under the Zacks framework, a Rank #3 can be held, but it does not carry the stronger near-term return profile associated with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Style Scores also remain mixed. Zacks says that higher grades are better, while weak scores can limit the upside potential over the next 30 days, especially when they are not paired with a top rank. That makes BB’s current setup more balanced than aggressive, and the rank can still change as earnings estimate revisions adjust after the quarter.