Key Takeaways BlackBerry raised fiscal 2027 revenue guidance after first-quarter revenues climbed 26% to $152.9 million.QNX revenues rose 26% to $72 million, supported by the strong development licenses performance.Secure Communications revenues grew 24% to $74 million on government demand, retention and recurring sales. BlackBerry (BB - Free Report) kicked off fiscal 2027 on a strong note, delivering better-than-expected first-quarter results and raising its fiscal year outlook. The performance was anchored by strong QNX and Secure Communications businesses, but the key question remains whether this momentum can sustain.
Quarterly revenues came in at $152.9 million, marking a 26% year-over-year increase. Profitability was equally impressive, with adjusted EBITDA more than doubling to $36 million.
QNX 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.
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 driving backlog. While still early, management remains positive about securing a design win within the current fiscal year.
Secure 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.
Encouraged by the strong start, BlackBerry now expects total revenues between $594 million and $621 million compared with $584-$611 million projected earlier.
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.
Let’s Take a Look at BB’s PeersWithin the cybersecurity space, BlackBerry competes with several giants, including CrowdStrike (CRWD - Free Report) . While BlackBerry’s focus remains on encrypted communications and sovereign-grade infrastructure, CRWD is one of the leading pureplay companies. CRWD entered fiscal 2027 with strong momentum, with the fiscal first quarter revenues rising 26% year over year to $1.39 billion and ARR reaching $5.51 billion (up 24%), alongside record net new ARR of $256 million (up 32%). Management emphasized that as enterprises rapidly adopt AI, cybersecurity has become a critical component, creating a massive demand pipeline.
CrowdStrike is seeing strong adoption across cloud, identity and next-gen SIEM, with these newer categories exceeding $2 billion in ARR. The company expects fiscal second quarter revenues to be between $1.436 billion and $1.442 billion. CRWD raised its fiscal 2027 net new ARR growth guidance by 520 basis points at the midpoint
Aptiv PLC (APTV - Free Report) Intelligent Systems segment is seeing increased activity around next-generation ADAS, user experience and vehicle architecture solutions. However, in the near-term Aptiv is navigating a volatile macro backdrop amid OEM and auto industry disruptions and inflationary pressure. For the second quarter of 2026, Aptiv expects revenues (excluding its EDS segment, which spun-off into a new publicly traded company, Versigent) to be between $3.2 billion and $3.4 billion.
APTV has only about 25% of its business outside automotive. The company is seeking to increase penetration in markets such as commercial aerospace and telecom and remains focused on accelerating product development and go-to-market activities.
BB Price Performance, Valuation & EstimatesShares of BlackBerry have lost 16.5% in the past month against the Internet-Software industry’s growth of 11%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, BB is trading at 6.74, higher than the industry’s multiple of 4.65.
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.
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?
BlackBerry is rated a speculative Buy, with asymmetric upside potential driven by QNX and the Alloy Kore middleware opportunity. QNX's ~$950m royalty backlog and record development license revenue signal robust forward growth, though much of it is long-dated. Valuation sensitivity centers on QNX; Alloy Kore could multiply revenue from existing customers and expand into non-automotive markets.
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]
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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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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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
BlackBerry Limited (TSE:BB – Get Free Report) (NASDAQ:BBRY) insider Philip Simon Kurtz sold 30,000 shares of the firm’s stock in a transaction on Tuesday, July 14th. The stock was sold at an average price of C$15.92, for a total value of C$477,600.00. Following the sale, the insider directly owned 95,158 shares in the company, valued at C$1,514,915.36. The trade was a 23.97% decrease in their position.
Philip Simon Kurtz also recently made the following trade(s):
On Thursday, July 2nd, Philip Simon Kurtz sold 4,195 shares of BlackBerry stock. The stock was sold at an average price of C$16.39, for a total value of C$68,756.05. BlackBerry Trading Down 1.9% TSE BB opened at C$12.60 on Friday. The firm has a market cap of C$7.38 billion, a P/E ratio of 126.00, a P/E/G ratio of 0.06 and a beta of 1.16. The company has a debt-to-equity ratio of 29.45, a current ratio of 2.20 and a quick ratio of 1.49. The stock’s 50-day moving average is C$12.93 and its 200-day moving average is C$7.98. BlackBerry Limited has a one year low of C$4.35 and a one year high of C$18.45.
BlackBerry (TSE:BB – Get Free Report) (NASDAQ:BBRY) last released its quarterly earnings data on Thursday, June 25th. The company reported C$0.06 earnings per share for the quarter. BlackBerry had a return on equity of 8.10% and a net margin of 10.32%.The business had revenue of C$210.94 million for the quarter. Sell-side analysts anticipate that BlackBerry Limited will post 0.0551903 earnings per share for the current fiscal year.
Wall Street Analyst Weigh In Separately, Stifel Nicolaus set a C$12.00 price target on shares of BlackBerry and gave the company a “buy” rating in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of C$12.00.
Read Our Latest Research Report on BB
BlackBerry Company Profile (Get Free Report)
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.
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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.
BlackBerry (BB - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this cybersecurity software and services company have returned +26.1%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Internet - Software industry, which BlackBerry falls in, has gained 3.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
BlackBerry is expected to post earnings of $0.04 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed +20%.
For the current fiscal year, the consensus earnings estimate of $0.17 points to a change of +6.3% from the prior year. Over the last 30 days, this estimate has changed -2.5%.
For the next fiscal year, the consensus earnings estimate of $0.23 indicates a change of +33.3% from what BlackBerry is expected to report a year ago. Over the past month, the estimate has changed +10.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, BlackBerry is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of BlackBerry, the consensus sales estimate of $143 million for the current quarter points to a year-over-year change of +10.3%. The $612.37 million and $674.27 million estimates for the current and next fiscal years indicate changes of +11.5% and +10.1%, respectively.
Last Reported Results and Surprise HistoryBlackBerry reported revenues of $152.9 million in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $0.04 for the same period compares with $0.02 a year ago.
Compared to the Zacks Consensus Estimate of $136.1 million, the reported revenues represent a surprise of +12.34%. The EPS surprise was +33.33%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
BlackBerry is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about BlackBerry. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
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.
New single-stock ETFs give investors amplified leveraged daily participation tied to BlackBerry Limited (NYSE: BB) and Everpure, Inc. (NYSE: P)
NEW YORK, July 07, 2026 (GLOBE NEWSWIRE) -- GraniteShares, an independent ETF issuer known for its lineup of leveraged single-stock ETFs, today announced the launch of
GraniteShares 2x Long BlackBerry Daily ETF (Ticker: BBUL)
GraniteShares 2x Long P Daily ETF (Ticker: PUL)
BBUL seeks daily investment results, before fees and expenses, of 200% (2x) of the daily percentage change in the price of BlackBerry common stock (NYSE: BB).
PUL seeks daily investment results, before fees and expenses, of 200% (2x) of the daily percentage change in the price of Everpure common stock (NYSE: P).
The new funds give traders a way to seek amplified daily returns on two actively traded software names through a single ticker, without the need for a margin account, options approval, or borrowing costs. Each fund resets its leverage daily, providing a defined 2x objective at the start of every trading session. Shares can be bought and sold intraday through any standard brokerage account.
BBUL and PUL join GraniteShares' lineup of leveraged single-stock ETFs, one of the largest in the market, covering high-conviction names across technology, AI, crypto, and consumer sectors.
“Traders want simple, efficient tools to act on short-term conviction,” said Will Rhind, Founder and CEO of GraniteShares. “BBUL and PUL deliver 2x daily leveraged positioning in a single trade. No margin account, no options chains, just a ticker. That simplicity is why leveraged single-stock ETFs have become one of the fastest-growing categories in the market, and why we continue to expand our lineup.”
Fund Details
Each Fund seeks its stated investment objective for a single day only, before fees and expenses. Due to the daily reset of leverage and the effects of compounding, returns over periods longer than one day will likely differ in amount and possibly direction from 2x the return of the underlying stock over the same period. The Funds are intended for knowledgeable investors who understand these risks and are willing to monitor their positions frequently.
About GraniteShares
GraniteShares is a global investment firm dedicated to creating and managing ETFs. Founded in 2016 by William “Will” Rhind and headquartered in New York City, GraniteShares provides products across U.S., U.K., German, French, and Italian exchanges. The firm offers a range of leveraged, income-oriented, and thematic ETFs, including its YieldBOOSTTM platform and single-stock leveraged ETF lineup.
GraniteShares is a market leader in leveraged single-stock ETFs and has $13.205 billion in assets under management as of July 06, 2026.
For more information, visit graniteshares.com.
Media Contact
GraniteShares, Inc.
250 Broadway, 24th Floor, New York, NY 10007
Phone: (844) 476-8747
Email: [email protected]
Web: graniteshares.com
RISK FACTORS AND IMPORTANT DISCLOSURE
This material must be preceded or accompanied by a Prospectus. Carefully consider the Fund’s investment objectives risk factors, charges and expenses before investing. Please read the prospectus before investing.
The Fund is not suitable for all investors. The investment program of the funds is speculative, entails substantial risks and include asset classes and investment techniques not employed by most ETFs and mutual funds. Investments in the ETFs are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios frequently. For periods longer than a single day, the Fund will lose money if the Underlying Stock’s performance is flat, and it is possible that the Fund will lose money even if the Underlying Stock’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day.
The Fund seeks daily leveraged investment results and are intended to be used as short-term trading vehicles. This Fund attempts to provide daily investment results that correspond to the respective long leveraged multiple of the performance of its underlying stock (a leverage Fund).
Investors should note that such Leverage Long Fund pursues daily leveraged investment objectives, which means that the Fund is riskier than alternatives that do not use leverage because the Fund magnifies the performance of its underlying stock. The volatility of the underlying security may affect a Funds return as much as, or more than, the return of the underlying security.
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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.
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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.
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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.
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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.
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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.
SummaryBlackBerry has emerged as a significant market winner in 2026, with shares more than tripling.Recent Q1 results signaled a positive inflection, with revenue growth and GAAP profits finally materializing after prolonged struggles.The surge in shares has put the valuation at a level that matches tech names that are usually growing their top lines much faster. Thomas Barwick/DigitalVision via Getty Images
One of the market's biggest winners over the past year has been BlackBerry (BB). The Canadian technology company had struggled for years to get its top line growing, but the situation has finally started
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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%.
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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.
New integrations extend BlackBerry AtHoc mission orchestration into the identity and collaboration systems organizations already run, keeping coordinated response fast and accountable as the window between warning and action shrinks
WATERLOO, ON / ACCESS Newswire / June 30, 2026 / BlackBerry Secure Communications, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), today announced enhancements to BlackBerry® AtHoc®, its mission orchestration platform. BlackBerry AtHoc coordinates the people, information, and action a critical event demands, from first alert through the response that follows, with real-time accountability across every organization involved. The release extends that coordination across the systems enterprises and governments already run, through new Microsoft Teams and Microsoft Entra ID integrations, and sharpens the platform's own capabilities across response capture, situational mapping, and operator dispatch.
The world these organizations operate in is becoming less predictable. Mythos-era AI has changed the calculus of cyber readiness, compressing the gap between a vulnerability becoming known and being exploited from weeks to hours. Climate volatility and geopolitical instability have intensified alongside it, raising both the frequency and the stakes of events that planning once treated as remote. Across all of them, the interval between an event and the response it demands keeps narrowing, and mission integrity and business continuity now depend on closing that gap before the disruption can widen.
"The world our customers operate in is less predictable than it was, and a Mythos-era cyberattack now compresses the time to respond no differently than a severe storm or a geopolitical crisis," said Ramon Pinero, General Manager, BlackBerry AtHoc. "Effective response comes down to reaching the right people fast, through the tools they already use. This release makes BlackBerry AtHoc better at exactly that."
Meeting that condition cannot mean replacing the systems an organization already runs. Under pressure, people reach for the tools they use every day, and anything that forces them elsewhere adds friction exactly when there is none to spare. BlackBerry AtHoc overlays the systems already in place rather than displacing them, letting an organization extend the investments it has already made instead of standing up something new. A new Microsoft Teams integration brings BlackBerry AtHoc alerting and response into Teams, so enterprises and agencies run critical communications where they already work, with no separate system to open and no workflow to relearn mid-crisis.
That starts with identity. A new Microsoft Entra ID integration lets IT administrators provision and update BlackBerry AtHoc users directly from the identity source they already maintain. In enterprise and government environments where identity governs access, security, and compliance, keeping that data in sync is a condition of readiness. User records stay current automatically, so the right people are reachable the instant an alert is issued, whether the event is a cyber intrusion, a natural disaster, or a sudden civil emergency, without the manual upkeep that enterprises, agencies, and critical infrastructure operators can no longer afford to carry.
The release also deepens readiness across the rest of the operator workflow. Alert Response Comments now let recipients add context as they acknowledge, so an operator reads not just who has responded but what they are seeing, turning a headcount into situational input. New private ArcGIS map layer support and custom map layer creation bring an organization's own operational geography into BlackBerry AtHoc, sharpening how alerts are targeted and impact is assessed, from routing an evacuation to scoping a cyber exposure. New operator workflow controls, alert resend for multiple responses and mass device alert repeat, harden dispatch so a message reaches a large, distributed population without anyone falling through.
For most organizations, the alternative to a platform built for crisis coordination is a patchwork of tools that were not. BlackBerry's State of Secure Communications 2026 report finds many still coordinating major incidents over group chats, email threads, shared spreadsheets, and phone trees, outpaced by the speed at which events now unfold. Each enhancement in this release serves to address the shortcomings of a patchwork, keeping contacts current, replies structured, geography accurate, and dispatch complete.
BlackBerry AtHoc has carried that load at scale. During the global IT outage of 2024, an event that began as an operational disruption rather than an attack, BlackBerry AtHoc coordinated mass-scale response across its customer base through one of the largest such events on record, and allied governments use it for national-level critical event coordination. This release keeps BlackBerry AtHoc aligned with how enterprises and governments actually operate, and ready for a world where the next disruption is harder to predict and faster to arrive.
The new capabilities are available now to existing customers. To learn more about BlackBerry AtHoc, visit BlackBerry.com/AtHoc.
# # #
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.
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.
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's QNX revenue rose 26% year over year, supported by strong development license activity.BB raised fiscal 2027 revenue guidance after stronger first-quarter results and improving profitability.BlackBerry expects stronger cash flow as QNX expands across automotive and embedded markets. BlackBerry Limited (BB - Free Report) transformation is increasingly being driven by QNX, whose expanding presence in software-defined vehicles and embedded systems is creating a longer runway for growth. While BlackBerry still faces execution risks and its valuation already reflects much of the recent optimism, improving fundamentals are changing how investors evaluate the company.
BB Builds on QNX MomentumQNX has clearly become BlackBerry's primary growth engine.
During the fiscal first quarter of 2027, QNX generated approximately $72 million in revenue, increasing 26% year over year while delivering another Rule of 40 quarter through a combination of strong revenue growth and profitability.
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One of the quarter's most encouraging developments was the development license revenue reaching its highest level in eight quarters. Because development licenses are typically purchased years before vehicles enter production, they serve as an early indicator of future royalty revenue and expanding customer adoption.
Software-defined vehicles remain the largest opportunity, with automakers requiring increasingly sophisticated operating systems capable of supporting centralized computing architectures and multiple safety-critical domains. BlackBerry continues to secure new automotive design wins across advanced driver assistance systems, cockpit platforms and commercial vehicles while expanding deployments of its latest SDP 8 platform.
Growth is also broadening beyond automotive through the General Embedded Markets (GEM) business. Robotics, industrial automation, medical devices and semiconductor equipment all represent attractive expansion opportunities where deterministic, safety-certified operating systems are increasingly required.
Management also views Physical AI as an emerging long-term catalyst. As intelligent machines become more autonomous, demand for highly reliable, safety-certified software platforms should increase, positioning QNX to benefit from applications extending well beyond automobiles.
Another potential growth driver is Alloy Core, a platform designed to simplify software-defined vehicle development. Rather than supplying only the operating system, Alloy Core could significantly increase software content per vehicle, expand average selling prices and generate larger future royalty streams if customer adoption continues.
Strategic partnerships with NVIDIA (NVDA - Free Report) , Qualcomm (QCOM - Free Report) and Arm further strengthen BlackBerry's ecosystem by positioning QNX alongside many of the industry's leading silicon providers. These relationships could help accelerate adoption across automotive and broader embedded computing markets.
BlackBerry Raises Financial ExpectationsBlackBerry's improving execution has prompted management to raise its fiscal 2027 outlook.
Following stronger-than-expected first-quarter results, management increased full-year revenue guidance to a range of $594 million to $621 million from the prior outlook of $584 million to $611 million. The improved forecast reflects stronger expectations for both QNX and Licensing.
First-quarter results demonstrated growing operating leverage across the business. Revenue climbed to approximately $153 million, above management's guidance range, while adjusted EBITDA more than doubled year over year to roughly $36 million. Gross margin expanded to approximately 79%, and the company generated positive operating cash flow of roughly $5 million during what management described as a seasonally weaker quarter.
BlackBerry also expects operating cash flow to improve significantly during fiscal 2027, with management forecasting approximately $100 million for the full year. Continued margin expansion, improving profitability and stronger cash generation suggest the company's restructuring efforts are increasingly translating into sustainable financial performance.
How BB Ratings Reflect the Current SetupBlackBerry currently carries a Zacks Rank #2 (Buy), reflecting improving earnings expectations and favorable near-term fundamentals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock also has a Growth Score of A, consistent with accelerating revenue growth, expanding margins and improving cash generation. However, BlackBerry's Value Score of F and Momentum Score of F indicate that shares appear relatively expensive following their strong rally and have weaker characteristics under those investment styles. Combined, these produce a VGM Score of D.
Taken together, these ratings present a balanced investment picture. The improving business outlook supports the positive Zacks Rank, particularly as QNX continues expanding into software-defined vehicles and embedded markets. At the same time, weaker Value and Momentum Scores suggest much of the recent operational improvement may already be reflected in the share price.
For investors, the investment thesis increasingly depends on BlackBerry's ability to convert its expanding QNX pipeline into sustained revenue growth and higher long-term cash generation.
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.
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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 (BB - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for BlackBerry basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for BlackBerry imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for BlackBerryFor the fiscal year ending February 2027, this cybersecurity software and services company is expected to earn $0.17 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for BlackBerry. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.4%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of BlackBerry to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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.
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June 29, 2026 2:33 PM 2 min read
BB Shares Are RisingBB Price Action: BlackBerry shares were up 10.53% at $12.60 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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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.
BlackBerry CEO John Giamatteo discusses the company's evolution into a software and infrastructure player, centered on its QNX operating system. He highlights that QNX now powers over 275 million vehicles globally and is increasingly used in robotics, medical devices and industrial automation.
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.
Image Source: Zacks Investment Research
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.
BlackBerry Limited (NYSE:BB) on Thursday reported upbeat first-quarter earnings.
BlackBerry reported adjusted earnings per share of 4 cents, beating the consensus estimate of 3 cents. In addition, it reported revenue of $152.90 million, beating the consensus estimate of $138.18 million and representing a 26% year-over-year increase.
"The foundation of the business is stronger than it has been in years, and we continue to focus on disciplined execution and creating long-term value for our shareholders," said John Giamatteo, CEO.
BlackBerry expects second-quarter adjusted earnings per share of between 3 cents and 4 cents, versus the consensus estimate of 4 cents. Furthermore, it anticipates revenue of $137.00 million to $148.00 million, versus the consensus estimate of $139.53 million.
The company also raised its fiscal-year adjusted earnings per share guidance from between 15 cents and 19 cents to between 16 cents and 20 cents, versus the consensus estimate of 17 cents. BlackBerry raised its revenue guidance as well from between $584.00 million and $611.00 million to between $594.00 million and $621.00 million, versus the consensus estimate of $601.88 million.
BlackBerry shares rose 6.9% to trade at $11.06 on Friday.
These analysts made changes to their price targets on BlackBerry following earnings announcement.
Canaccord Genuity analyst Michael Walkley maintained the stock with a Hold and raised the price target from $8.2 to $10.3. CIBC analyst Todd Coupland maintained BlackBerry with an Outperformer rating and raised the price target from $10 to $13. Considering buying BB stock? Here’s what analysts think:
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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.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$3.12▼
$10.93P/E Ratio128.58
Price Target$7.17
BlackBerry Limited NYSE: BB delivered a Q1 fiscal 2027 earnings beat that impressed investors.
The June 25 report showed revenue surging 26% year-over-year to $152.9 million, well above the $139.8 million consensus.
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Adjusted earnings per share (EPS) of four cents topped the analysts’ estimate of three cents.
However, a double beat alone doesn’t explain BB’s nearly 20% post-earnings surge, or its more than 170% year-to-date rally.
The bigger story is about the company’s ongoing transformation. BlackBerry is now a pure-play software company with a real foothold in what many call AI's next leg: physical AI. The question for investors is whether the recent surge is too early or just the start of a longer rally.
BlackBerry Earnings Beat Shows Software Strategy Is WorkingAt a time when many technology stocks are being judged by a “what have you done for me lately?” standard, BlackBerry's latest earnings report gave the bulls a lot of ammunition. The numbers show that the company is converting its software pivot into durable profitability.
BlackBerry posted its fifth consecutive quarter of positive GAAP net income. Adjusted EBITDA grew 144% year-over-year. Both the QNX and Secure Communications segments achieved Rule of 40 performance, a benchmark that combines growth and margin into a single test of software-business quality. The company also generated $4.6 million in operating cash flow, marking its first positive operating cash flow quarter in nine years, excluding a prior patent sale.
Management raised full-year guidance to revenue of $594 million to $621 million and adjusted EPS between 16 cents and 20 cents.
How QNX Positions BlackBerry for the Physical AI Boom BlackBerry has fully exited handsets and now exclusively sells software. QNX, its real-time operating system, sits inside more than 275 million vehicles on the road today.
That installed base gives BlackBerry a strategic position in physical AI. Physical AI refers to systems where models drive real-world machines: autonomous vehicles, humanoid robots, surgical equipment and industrial automation. These applications need software that responds in microseconds with zero tolerance for failure.
This is where QNX shines. Its deterministic, safety-certified architecture is built for exactly these workloads. Cloud-trained AI must eventually run on certified embedded software when it touches the physical world, and that layer is QNX's value proposition.
The NVIDIA NASDAQ: NVDA partnership, which was announced at Hannover Messe in April, amplifies the opportunity. QNX OS for Safety 8.0 now integrates with NVIDIA's IGX Thor platform and Halos Safety Stack. The combination targets autonomous mobile robots, humanoids, surgical robotics, and industrial automation.
Those are categories NVIDIA CEO Jensen Huang has flagged as multi-trillion-dollar end markets. A separate design win with Chinese EV maker Leapmotor for its D19 SUV signals continued automotive traction even as QNX expands into new verticals.
Can BlackBerry's Valuation Support More Upside? After the post-earnings bump, BB shares trade around $10 with a trailing price-to-earnings (P/E) ratio just shy of 130x.
Current Price$10.29High Forecast$12.00Average Forecast$7.17Low Forecast$4.50BlackBerry Stock Forecast Details
The Blackberry analyst consensus forecasts on MarketBeat have the stock rated a Hold, with a consensus price target of around $7.
However, Canaccord Genuity nearly doubled its price target to $8.20 from $4.40 on June 24, and Stifel Nicolas initiated coverage with a $12 price target. Investors will be watching to see if these are outliers or the start of a trend.
The consensus Hold rating suggests analysts still view BB as a slow-growth business. But if price targets begin to chase the company’s fundamentals, the outlook will change.
For example, if QNX captures even a small slice of the physical AI software stack, the addressable market expands well beyond automotive. The NVIDIA partnership also opens distribution to a developer ecosystem numbering in the millions.
That is the "early" argument. Bears counter that the revenue base is still small relative to ambitions. Competition from open-source ROS 2 and established players like Wind River and Green Hills Software is real and well-funded.
The Catch: QNX Momentum May Take Time to ScaleSeveral risks deserve attention before chasing the rally. QNX revenue grew strongly in Q1, but automotive software design cycles are notoriously long. Royalty revenue depends on vehicle production volumes, which remain choppy globally.
Secure Communications growth runs in the mid-single digits. That segment generates steady cash but will not drive the multiple expansion needed to justify the current price.
Stock-based compensation and dilution are also persistent issues. A buyback program is in place, but the share count needs to fall further for per-share metrics to improve meaningfully.
Is BlackBerry Stock a Buy After Its Massive Rally? The Q1 print confirmed that BlackBerry's pivot is working. Physical AI gives the company a real growth narrative for the first time in over a decade. But at current prices, investors are paying for a story that needs several quarters of execution to fully play out.
For long-term holders, the thesis remains intact, and the guidance raise gives them another quarter of cover. For new buyers, waiting for a pullback or a clearer signal that QNX royalties are accelerating may be the more disciplined approach.
BlackBerry Limited (BB) Price Chart for Friday, June, 26, 2026
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BlackBerry Ltd. reported a stronger first quarter, posting higher profit and revenue compared with the same period last year while increasing its revenue outlook for the full fiscal year.
The software company, which reports its financial results in US dollars, recorded a net profit of $8.5 million for the three months ended May 31, 2026, compared with $1.9 million in the corresponding quarter a year earlier.
Revenue for the quarter rose 26 per cent to $152.9 million, up from $121.7 million in the same period last year.
Investors responded positively to the results.
Following the release of its first-quarter results, BlackBerry's shares climbed 16% on the Toronto Stock Exchange on Thursday.
At the time of writing, the stock was up about 0.39% in pre-market trading.
Following the quarterly performance, BlackBerry raised its revenue guidance for the full fiscal year.
The company now expects annual revenue to be between $594 million and $621 million, compared with its previous forecast of $584 million to $611 million.
BlackBerry reported earnings of one US cent per share for the quarter, compared with break-even results in the same period last year.
The company earned four US cents per share, up from two US cents per share a year earlier.
Management said the interim consolidated financial statements were prepared in accordance with United States generally accepted accounting principles.
The company noted that the statements do not include all disclosures required for annual financial reporting and should be read alongside its audited annual financial statements for the year ended February 28, 2026.
Management also stated that all normal recurring adjustments considered necessary for a fair presentation have been included.
However, it cautioned that operating results for the quarter ended May 31, 2026, may not necessarily indicate performance for the full fiscal year ending February 28, 2027.
The company added that preparing the financial statements requires management to make estimates and assumptions related to assets, liabilities, revenue, expenses, and contingent liabilities.
Actual results could differ from those estimates, and the differences could be material.
Operating structure remains unchangedBlackBerry said it continues to operate through three reportable business segments: QNX, Secure Communications, and Licensing.
The company also said there were no material changes to its significant accounting policies or critical accounting estimates compared with those outlined in its annual financial statements.
BB said it adopted ASU 2025-05 during the first quarter of fiscal 2027.
The accounting update relates to the estimation of expected credit losses on certain receivables.
According to the company, adopting the standard did not have, and is not expected to have, a material impact on its consolidated financial statements.
The company also outlined several accounting standards that have not yet been adopted.
BlackBerry said it plans to adopt ASU 2024-03 in fiscal 2028 and is evaluating its disclosure requirements.
It also expects to adopt ASU 2025-09, covering derivatives and hedge accounting, in fiscal 2028.
The company said it has not yet determined the potential impact of the guidance on its financial statements.
The company said it measures fair value based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.
BlackBerry stated that it uses a three-level fair value hierarchy based on observable and unobservable inputs.
Cash, cash equivalents, receivables, and accounts payable are carried at amounts that approximate their fair values because of their short-term nature.
The company said it primarily relies on an independent third-party valuator to determine the fair value of investments while conducting its own internal review of pricing for reasonableness.
It also remeasures certain long-lived assets and non-marketable equity investments when events indicate impairment or other valuation changes.
Shareholder Meeting WATERLOO, ON / ACCESS Newswire / June 25, 2026 / BlackBerry Limited (NYSE:BB)(TSX:BB) announced today that the eight nominees listed in the company's management proxy circular dated May 1, 2026, for the company's annual and special meeting of shareholders held on June 25, 2026, were elected as directors to serve until BlackBerry's next annual shareholder meeting or until their successors are elected or appointed. The detailed results of the vote are set out below.
Nominee
Votes For
% For
Votes Withheld
% Withheld
Lisa Bahash
229,992,003
85.58%
38,743,711
14.42%
Philip Brace
260,433,374
96.91%
8,302,340
3.09%
Lisa Disbrow
257,152,989
95.69%
11,582,725
4.31%
John J. Giamatteo
257,184,353
95.70%
11,551,360
4.30%
Richard Lynch
226,757,584
84.38%
41,978,130
15.62%
Barry Mainz
266,033,801
98.99%
2,701,913
1.01%
Lori O'Neill
265,897,694
98.94%
2,838,022
1.06%
Wayne Wouters
255,639,623
95.13%
13,096,091
4.87%
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.
BlackBerry (BB +19.95%), a security software and embedded systems provider, closed at $10.32, up 19.72%. Shares rose after first-quarter fiscal 2027 results showed an earnings beat and revenue above estimates. Investors are watching QNX’s momentum and updated fiscal 2027 revenue guidance. Trading volume reached 70.2M shares, coming in about 140% above its three-month average of 29.2M shares. BlackBerry IPO'd in 1999 and has grown 438% since going public.
How the markets moved todayThe S&P 500 (^GSPC 0.01%) closed at 7,357, down 0.01%, while the Nasdaq Composite (^IXIC 0.46%) finished at 25,359, down 0.46%. Among cybersecurity and embedded software for enterprises and automakers, Palo Alto Networks closed at $293.09, up 2.74%, and CrowdStrike Holdings ended at $678.65, up 0.84%, showing firmer trading in sector rivals.
What this means for investorsIt was a great day for BlackBerry shareholders as the company delivered Q1 sales and adjusted EBITDA growth of 26% and 144%, respectively, suggesting that its turnaround is in full effect. In addition to this impressive Q1 growth, management guided that 2027 sales will rise by roughly 11% at the midpoint and that it will generate at least $100 million in cash from operations -- up from $50 million last year.
The best part of BlackBerry’s strong results, in my opinion, is that they were company-wide. Its burgeoning, automotive-focused (for now) QNX unit grew sales by 26% and remains the “crown jewel” of BB’s growth plans, with a backlog of nearly $1 billion. However, the company’s more mature security communications and licensing divisions also grew revenue by 24% and 49%, respectively.
BlackBerry has quietly reinvented itself, but investors may want to consider buying shares in small batches over time as the stock has already doubled over the last year.
Josh Kohn-Lindquist has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool recommends BlackBerry and Palo Alto Networks. The Motley Fool has a disclosure policy.
Shares of BlackBerry BB traded higher on Thursday morning after the company reported stronger-than-expected first-quarter results and raised its financial outlook for fiscal 2027.
At the time of writing, BB stock was up more than 22% on the NYSE following the earnings release.
The company said it achieved operating cash flow of $4.6 million in the first quarter, describing it as its "first cash-positive fiscal quarter in nine years," excluding the non-core patent sale in 2024.
The result was supported by growing demand for its vehicle software and encrypted communications offerings.
BlackBerry reported revenue of $152.9 million for Q1, up 26% year-on-year and ahead of the $137.9 million estimate polled by Fiscal AI.
Adjusted earnings per share came in at $0.04, slightly above the $0.03 estimate.
The company also raised its fiscal 2027 revenue outlook to a range of $594 million to $621 million, compared with its previous forecast of $584 million to $611 million.
BlackBerry said growth was driven by strong performance across its core business segments, particularly QNX and Secure Communications, which both recorded double-digit percentage gains.
QNX revenue rose 26% to $72.3 million, while Secure Communications increased 24% to $73.6 million. Licensing revenue also contributed modestly at about $10 million.
“Demand across our markets remains healthy. Customer engagement is strong, and our backlog continues to expand,” the company said during its earnings call with analysts. “Governments around the world continue to prioritize digital sovereignty, cybersecurity modernization, and secure communications infrastructure, creating favorable demand conditions for our solutions.”
The company also highlighted emerging opportunities in artificial intelligence and automation.
“Where particularly excited about the long-term opportunity in physical AI. As intelligent machines become increasingly autonomous and operate around people, the requirements for safety, security, reliability, and real-time determinism become even more important,” BlackBerry said.
It added: “In many ways, automotive has been a proving ground for the demands of physical AI. Modern vehicles are essentially robots on wheels, and QNX has established itself as a trusted platform supporting many of the industry's most advanced autonomous and safety-critical systems.”
BlackBerry raised its fiscal 2027 outlook, citing stronger embedded software performance and expanding AI-related opportunities.
The company now expects QNX revenue of $295 million to $312 million, up from a prior forecast of $290 million to $307 million, while Secure Communications guidance remains unchanged.
Licensing revenue is expected to be slightly higher.
Adjusted earnings for fiscal 2027 are projected in the range of 16 to 20 cents per share, compared with Wall Street expectations of 18 cents per share.
Chief Executive John Giamatteo said the company sees multi-year growth potential ahead, particularly in software-defined vehicles and broader embedded systems markets.
For the current quarter, BlackBerry expects revenue between $137 million and $148 million, above prior expectations, with adjusted EBITDA forecast at $20 million to $30 million and adjusted earnings of 3 to 4 cents per share.
Blackberry (TSX:BB) shares jumped nearly 21% on Thursday in New York and Toronto after the Canadian technology company posted first-quarter fiscal 2027 results that beat analyst expectations, driven by double-digit growth across its QNX automotive software and Secure Communications divisions.
Revenue for the quarter came in at $152.9 million, up 26% year over year and well above the analyst consensus of $138.2 million.
Adjusted earnings per share of $0.04 topped estimates of $0.03, while adjusted EBITDA surged 144% to $36.3 million.
The company also reported operating cash flow of $4.6 million for the quarter, marking its first positive fiscal first quarter in nine years, excluding a patent sale in fiscal 2024.
Both QNX and Secure Communications achieved Rule of 40, a benchmark that combines revenue growth and profitability margin and is widely used to evaluate software company performance.
QNX, Blackberry (TSX:BB)'s embedded operating system business serving the automotive and industrial sectors, posted revenue of $72.3 million, up 26% year over year, with adjusted EBITDA rising 52% to $19.3 million.
Secure Communications, which serves government and enterprise customers, generated revenue of $73.6 million, a 24% increase year over year. Adjusted EBITDA for the segment more than doubled, rising 110% to $20.2 million. Annual recurring revenue for the division stood at $220 million, with a dollar-based net revenue retention rate of 92%.
Licensing revenue was $7 million. The company held cash and investments of $422.9 million at quarter end.
For the second quarter, BlackBerry guided for revenue of $137 million to $148 million, adjusted EBITDA of $20 million to $30 million, adjusted EPS of $0.03 to $0.04, and operating cash flow ranging from breakeven to $10 million.
Full-year guidance calls for revenue of $594 million to $621 million, adjusted EBITDA of $119 million to $139 million, adjusted EPS of $0.16 to $0.20, and operating cash flow of approximately $100 million.
BlackBerry reported adjusted earnings per share of 4 cents, beating the consensus estimate of 3 cents. In addition, it reported revenue of $152.90 million, beating the consensus estimate of $138.18 million and representing a 26% year-over-year increase.
QNX revenue grew 26% year-over-year to $72.3 million, while Secure Communications revenue rose 24% year-over-year to $73.6 million. Adjusted EBITDA grew 144% year-over-year to $36.3 million.
The company posted positive operating cash flow of $4.6 million, its first cash-positive fiscal first quarter in nine years. BlackBerry ended the quarter with $422.9 million in cash and investments and repurchased 2.6 million shares for $10.0 million during the period.
“The foundation of the business is stronger than it has been in years, and we continue to focus on disciplined execution and creating long-term value for our shareholders,” said John Giamatteo, CEO.
GuidanceBlackBerry expects second-quarter adjusted earnings per share of between 3 cents and 4 cents, versus the consensus estimate of 4 cents. Furthermore, it anticipates revenue of $137.00 million to $148.00 million, versus the consensus estimate of $139.53 million.
The company also raised its fiscal-year adjusted earnings per share guidance from between 15 cents and 19 cents to between 16 cents and 20 cents, versus the consensus estimate of 17 cents. BlackBerry raised its revenue guidance as well from between $584.00 million and $611.00 million to between $594.00 million and $621.00 million, versus the consensus estimate of $601.88 million.
BlackBerry Shares SurgeBB Price Action: At the time of publication, BlackBerry shares are trading 8.00% higher at $9.30, according to data from Benzinga Pro.
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Revenue increased 26% year-over-year to approximately $153 million
Adjusted EBITDA grew 144% year-over-year; GAAP operating income increased year-over-year to approximately $15 million
Both QNX and Secure Communications achieved Rule of 401 performance, contributing to BlackBerry's fifth consecutive quarter of positive GAAP net income; Adjusted EPS exceeded expectations
First fiscal quarter of positive operating cash flow in nine years, excluding the patent sale in FY24
WATERLOO, ON / ACCESS Newswire / June 25, 2026 / BlackBerry Limited (NYSE:BB)(TSX:BB) today reported financial results for the three months ended May 31, 2026 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
"Our first quarter results demonstrate continued momentum following our transformation, as we advance our strategy to drive profitable growth. We exceeded expectations for revenue, profitability, and cash generation through solid performance by our world class QNX and Secure Communications teams," said John J. Giamatteo, CEO, BlackBerry. "We are particularly encouraged by the multi-year growth opportunities ahead in software-defined vehicles, including significant content expansion with the Alloy Kore platform, as well as broad opportunities in the general embedded market, especially physical AI. We believe these opportunities significantly enhance QNX's long-term potential. While we remain early in the fiscal year, the foundation of the business is stronger than it has been in years, and we continue to focus on disciplined execution and creating long-term value for our shareholders."
First Quarter Fiscal 2027 Financial Highlights
Total company revenue of $152.9 million increased 26% year-over-year.
Total company adjusted gross margin improved approximately 4 percentage points year-over-year to 78.6%; GAAP gross margin improved by approximately 4 percentage points year-over-year to 78.3%.
Total company adjusted EBITDA increased by 144% year-over-year to $36.3 million; GAAP operating income improved by $13.3 million year-over-year to $15.3 million.
QNX revenue increased 26% year-over-year to $72.3 million; QNX segment adjusted gross margin expanded by 5 percentage points year-over-year to 86%.
QNX segment adjusted EBITDA increased 52% year-over-year to $19.3 million, representing a 27% margin.
Secure Communications revenue increased by 24% year-over-year to $73.6 million; Secure Communications segment adjusted gross margin increased by 2 percentage points year-over-year to 72%.
Secure Communications segment adjusted EBITDA increased 110% year-over-year to $20.2 million, representing a 27% margin.
Secure Communications ARR remained stable at $220 million and DBNRR was 92%.
Licensing revenue was $7.0 million; Licensing segment adjusted EBITDA was $6.2 million.
Adjusted net income increased 135% year-over-year to $25.4 million; GAAP net income was positive for the fifth consecutive quarter at $8.5 million.
Adjusted basic earnings per share was $0.04; GAAP basic earnings per share was $0.01.
Operating cash flow was $4.6 million, marking BlackBerry's first cash positive fiscal first quarter in nine years, when allowing for the sale of the non-core patent portfolio to Malikie in fiscal year 2024.
Repurchased 2.6 million shares for $10.0 million during the quarter.
Ended the first quarter with $422.9 million in cash and investments.
1 The company defines the Rule of 40 metric as the sum of its GAAP revenue year-over-year growth percentage and its non-GAAP adjusted EBITDA margin percentage. Where the sum equals or exceeds 40, then the Rule of 40 is considered to have been achieved.
Business Highlights & Strategic Announcements
Expanded QNX's collaboration with NVIDIA to advance safety-critical edge AI across robotics, medical, and industrial systems through the integration of QNX OS for Safety 8.0 with NVIDIA IGX Thor and the NVIDIA Halos Safety Stack.
Released QNX Hypervisor 8.0 for Safety, further strengthening QNX's position as a foundational software platform for software-defined vehicles, robotics, medical devices, and other safety critical applications.
Leading Chinese electric vehicle company, Leapmotor, selected the QNX® Software Development Platform 8.0 and QNX® Hypervisor for Safety 8.0 to serve as the foundational software platform for its forthcoming premium electric SUV, the D19.
Announced a collaboration with TKMS, one of the world's leading naval defence companies, for strategic collaboration in support of Canada's submarine program. TKMS will adopt QNX's trusted foundational software across its next‑generation naval platforms.
Achieved FedRAMP Class D (High) re-certification for BlackBerry® AtHoc®.
Announced a strategic partnership between BlackBerry Secure Communications and The IP Company to bring highly secure, certified communications capabilities to naval and military environments worldwide.
Announced the renewal of its normal course issuer bid ("NCIB") share buyback program for up to 26.8 million common shares.
Financial Outlook
BlackBerry is providing the following guidance for the second fiscal quarter ending August 31, 2026 and the fiscal year ending February 28, 2027.
Q2 FY27
FY27
Total BlackBerry revenue:
$137 - $148 million
$594 - $621 million
QNX revenue:
$70 - $75 million
$295 - $312 million
Secure Communications revenue:
$57 - $63 million
$270 - $280 million
Licensing revenue:
Approximately $10 million
Approximately $29 million
Total Company adjusted EBITDA:
$20 - $30 million
$119 - $139 million
QNX segment adjusted EBITDA:
$16 - $21 million
$74 - $86 million
Secure Communications segment adjusted EBITDA:
$5 - $10 million
$57 - $65 million
Licensing segment adjusted EBITDA:
Approximately $9 million
Approximately $25 million
Non-GAAP basic EPS2:
$0.03 - $0.04
$0.16 - $0.20
Operating cash flow
Breakeven - $10 million
Approximately $100 million
2 EPS guidance does not include the effect of any potential future share repurchases not yet completed as of the date of this release.
Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected Non-GAAP basic EPS for the second quarter and full fiscal year 2027 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release.
Conference Call and Webcast
A conference call and live webcast will be held today beginning at 8:00 a.m. ET, which can be accessed using the following link (here) or through the Company's investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (877) 883-0383 and entering Entry Number 1747488.
A replay of the conference call will be available at approximately one hour after the event using the same webcast link (here) or by dialing toll free +1 (855) 669-9658 and entering Replay Access Code 4857611.
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.
This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives.
The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition, and BlackBerry's expectations regarding its financial performance. Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; BlackBerry's ability to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance; significant changes in government customer demand or procurement requirements; BlackBerry's sales cycles and the time and expense of its sales efforts; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; BlackBerry's use of artificial intelligence technology and tools in its operations and in product development; adverse macroeconomic and geopolitical conditions, including trade policies and national security concerns; risks arising from a failure or perceived failure of the security features or functionality of BlackBerry's solutions; litigation against BlackBerry; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's dependence in part on its relationships with resellers and channel partners; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry's use of open source software and its ability to obtain rights to use third-party software; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry's indebtedness, which could impact its operating flexibility and financial condition; the asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry's quarterly revenue and operating results; and the volatility of the market price of BlackBerry's common shares.
These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law.
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts)
Consolidated Statements of Operations
Three Months Ended
May 31, 2026
May 31, 2025
Revenue
$
152.9
$
121.7
Cost of sales
33.2
31.4
Gross margin
119.7
90.3
Gross margin %
78.3
%
74.2
%
Operating expenses
Research and development
33.0
25.0
Sales and marketing
29.5
28.7
General and administrative
39.3
30.5
Amortization
2.5
4.0
Impairment of long-lived assets
0.1
0.1
104.4
88.3
Operating income
15.3
2.0
Investment income, net
1.1
2.9
Income before income tax
16.4
4.9
Provision for income taxes
7.9
3.0
Net income
$
8.5
$
1.9
Earnings per share
Basic
$
0.01
$
0.00
Diluted
$
0.01
$
0.00
Weighted-average number of common shares outstanding (000s)
Basic
586,741
596,300
Diluted
593,193
600,831
Total common shares outstanding (000s)
586,061
594,529
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)
Consolidated Balance Sheets
As at
May 31,
2026
February 28,
2026
Assets
Current
Cash and cash equivalents
$
256.8
$
274.7
Short-term investments
94.1
85.2
Accounts receivable, net of allowance of $3.6 and $3.4, respectively
160.6
156.0
Other receivables
5.5
7.5
Income taxes receivable
2.5
2.6
Other current assets
40.9
42.2
560.4
568.2
Restricted cash and cash equivalents
14.2
14.2
Long-term investments
57.8
58.3
Other long-term assets
53.8
56.3
Operating lease right-of-use assets, net
23.8
16.7
Property, plant and equipment, net
13.1
12.3
Intangible assets, net
39.2
40.1
Goodwill
478.4
479.1
$
1,240.7
$
1,245.2
Liabilities
Current
Accounts payable
$
16.3
$
5.5
Accrued liabilities
99.0
111.7
Income taxes payable
18.3
12.4
Deferred revenue, current
121.5
138.5
255.1
268.1
Deferred revenue, non-current
12.4
14.1
Operating lease liabilities
24.3
18.8
Other long-term liabilities
1.4
1.7
Long-term notes
196.8
196.5
490.0
499.2
Shareholders' equity
Capital stock and additional paid-in capital
2,919.3
2,924.4
Deficit
(2,155.8
)
(2,167.2
)
Accumulated other comprehensive loss
(12.8
)
(11.2
)
750.7
746.0
$
1,240.7
$
1,245.2
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)
Consolidated Statements of Cash Flows
Three Months Ended
May 31, 2026
May 31, 2025
Cash flows from operating activities
Net income
$
8.5
$
1.9
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization
4.1
5.7
Stock-based compensation
6.5
5.7
Operating leases
1.0
(1.6
)
Other
1.0
(0.6
)
Net changes in working capital items
Accounts receivable, net of allowance
(4.6
)
43.8
Other receivables
2.0
(3.3
)
Income taxes receivable
0.1
(0.1
)
Other assets
3.0
17.0
Accounts payable
11.0
(25.9
)
Accrued liabilities
(15.2
)
(41.7
)
Income taxes payable
5.9
3.1
Deferred revenue
(18.7
)
(22.0
)
Net cash provided by (used in) operating activities
4.6
(18.0
)
Cash flows from investing activities
Proceeds on sale, maturity or distribution from long-term investments
-
0.1
Acquisition of property, plant and equipment
(2.9
)
(0.9
)
Acquisition of intangible assets
(1.6
)
(1.2
)
Acquisition of short-term investments
(70.4
)
(21.7
)
Proceeds on sale or maturity of short-term investments
61.4
62.2
Net cash provided by (used in) investing activities
(13.5
)
38.5
Cash flows from financing activities
Issuance of common shares
1.3
1.2
Common shares repurchased
(10.0
)
(10.0
)
Net cash used in financing activities
(8.7
)
(8.8
)
Effect of foreign exchange gain (loss) on cash, cash equivalents, restricted cash, and restricted cash equivalents
(0.3
)
0.5
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period
(17.9
)
12.2
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period
288.9
280.3
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period
$
271.0
$
292.5
As at
May 31,
2026
February 28,
2026
Cash and cash equivalents
$
256.8
$
274.7
Restricted cash and cash equivalents
14.2
14.2
Short-term investments
94.1
85.2
Long-term investments
57.8
58.3
$
422.9
$
432.4
Reconciliations of the Company's Segment Results and Segment Adjusted EBITDA to the Consolidated Results
The following table shows information by operating segments for the three months ended May 31, 2026 and May 31, 2025. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Accounting Standards Board's Accounting Standard Codification Topic 280, Segment Reporting, based on the "management" approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker ("CODM") for making decisions and assessing performance of the Company's reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the "management" approach in reviewing the results of the Company's operating segments is segment adjusted gross margin. Additionally, the following tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment charge. For the three months ended May 31, 2026, the Company presented segment adjusted EBITDA results excluding amortization in segment research and development, segment sales and marketing and segment general and administrative to align to the operating expense presentation on the Consolidated Statement of Operations. For purposes of comparability, the Company's segment adjusted EBITDA for the three months ended May 31, 2025 has been updated to conform to the current year's presentation. See Note 10 to the Consolidated Financial Statements for a description of the Company's operating segments.
For the Three Months Ended
(in millions)
QNX
Secure Communications
Licensing
May 31,
Change
May 31,
Change
May 31,
Change
2026
2025
2026
2025
2026
2025
Segment revenue
$
72.3
$
57.5
$
14.8
$
73.6
$
59.5
$
14.1
$
7.0
$
4.7
$
2.3
Segment cost of sales
10.4
11.2
(0.8
)
20.8
18.1
2.7
1.5
1.6
(0.1
)
Segment adjusted gross margin
$
61.9
$
46.3
$
15.6
$
52.8
$
41.4
$
11.4
$
5.5
$
3.1
$
2.4
Segment research and development
18.9
12.3
6.6
12.6
11.2
1.4
-
-
-
Segment sales and marketing
15.6
13.2
2.4
12.3
13.6
(1.3
)
-
-
-
Segment general and administrative
8.1
8.1
-
7.8
7.1
0.7
0.8
0.9
(0.1
)
Less amortization included in segment cost of sales
-
-
-
0.1
0.1
-
1.5
1.6
(0.1
)
Segment adjusted EBITDA
$
19.3
$
12.7
$
6.6
$
20.2
$
9.6
$
10.6
$
6.2
$
3.8
$
2.4
Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures
In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of certain items from the Company's U.S. GAAP financial results. The Company believes that these non-GAAP financial measures and non-GAAP ratios provide management, as well as readers of the Company's financial statements, with a consistent basis for comparison across accounting periods and are useful in helping management and readers understand the Company's operating results and underlying operational trends. Beginning with the fiscal quarter ended May 31, 2026, the Company has included deferred share units revaluation adjustment as a non-GAAP adjustment and has applied this adjustment to comparative period.
Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted net income, adjusted earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income, adjusted EBITDA, segment adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies.
Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended May 31, 2026 and May 31, 2025
A reconciliation of the most directly comparable U.S. GAAP gross margin and gross margin percentage for the three months ended May 31, 2026 and May 31, 2025 to both adjusted gross margin and adjusted gross margin percentage are reflected in the table below:
For the Three Months Ended (in millions)
May 31, 2026
May 31, 2025
Gross margin
$
119.7
$
90.3
Stock compensation expense
0.5
0.5
Adjusted gross margin
$
120.2
$
90.8
Gross margin %
78.3
%
74.2
%
Stock compensation expense
0.3
%
0.4
%
Adjusted gross margin %
78.6
%
74.6
%
Reconciliation of U.S. GAAP operating expenses for the three months ended May 31, 2026, and May 31, 2025 to adjusted operating expenses is reflected in the table below:
For the Three Months Ended (in millions)
May 31, 2026
May 31, 2025
Operating expenses
$
104.4
$
88.3
Restructuring charges
0.3
2.9
Stock compensation expense
6.0
5.2
Acquired intangibles amortization
-
1.7
LLA impairment charge
0.1
0.1
Deferred share units revaluation adjustment
10.0
(1.5
)
Adjusted operating expenses
$
88.0
$
79.9
Reconciliation of U.S. GAAP net income and U.S. GAAP basic earnings per share for the three months ended May 31, 2026 and May 31, 2025 to adjusted net income and adjusted basic earnings per share is reflected in the table below:
For the Three Months Ended (in millions, except per share amounts)
May 31, 2026
May 31, 2025
Basic earnings
per share
Basic earnings per share
Net income
$
8.5
$
0.01
$
1.9
$
0.00
Restructuring charges
0.3
2.9
Stock compensation expense
6.5
5.7
Acquired intangibles amortization
-
1.7
LLA impairment charge
0.1
0.1
Deferred share units revaluation adjustment
10.0
(1.5
)
Adjusted net income
$
25.4
$
0.04
$
10.8
$
0.02
Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended May 31, 2026 and May 31, 2025 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:
For the Three Months Ended (in millions)
May 31, 2026
May 31, 2025
Research and development
$
33.0
$
25.0
Stock compensation expense
1.5
1.3
Adjusted research and development expense
$
31.5
$
23.7
Sales and marketing
$
29.5
$
28.7
Stock compensation expense
1.1
1.4
Adjusted sales and marketing expense
$
28.4
$
27.3
General and administrative
$
39.3
$
30.5
Restructuring charges
0.3
2.9
Stock compensation expense
3.4
2.5
Deferred share units revaluation adjustment
10.0
(1.5
)
Adjusted general and administrative expense
$
25.6
$
26.6
Amortization
$
2.5
$
4.0
Acquired intangibles amortization
-
1.7
Adjusted amortization expense
$
2.5
$
2.3
Reconciliation of U.S GAAP operating income to adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended May 31, 2026 and May 31, 2025 is reflected in the table below.
For the Three Months Ended (in millions)
May 31, 2026
May 31, 2025
Operating income
$
15.3
$
2.0
Non-GAAP adjustments to operating income
Restructuring charges
0.3
2.9
Stock compensation expense
6.5
5.7
Acquired intangibles amortization
-
1.7
LLA impairment charge
0.1
0.1
Deferred share units revaluation adjustment
10.0
(1.5
)
Total non-GAAP adjustments to operating income
16.9
8.9
Adjusted operating income
32.2
10.9
Amortization
4.1
5.7
Acquired intangibles amortization
-
(1.7
)
Adjusted EBITDA
$
36.3
$
14.9
Revenue
$
152.9
$
121.7
Adjusted operating income margin % (1)
21
%
9
%
Adjusted EBITDA margin % (2)
24
%
12
%
______________________________
(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.
(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue.
The CODM also uses the segment metric of segment adjusted EBITDA, which is a non-GAAP measure including segment expenses that exclude amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment. The following table reconciles the U.S. GAAP measures of segment profit or loss disclosed by the Company in the Consolidated Financial Statements from segment adjusted gross margin to segment adjusted EBITDA for the three months ended May 31, 2026 and May 31, 2025.
For the Three Months Ended
(in millions)
QNX
Secure Communications
Licensing
May 31,
May 31,
May 31,
2026
2025
2026
2025
2026
2025
Segment adjusted gross margin
$
61.9
$
46.3
$
52.8
$
41.4
$
5.5
$
3.1
Segment research and development
18.9
12.3
12.6
11.2
-
-
Segment sales and marketing
15.6
13.2
12.3
13.6
-
-
Segment general and administrative
8.1
8.1
7.8
7.1
0.8
0.9
Less amortization included in segment cost of sales
-
-
0.1
0.1
1.5
1.6
Segment adjusted EBITDA
$
19.3
$
12.7
$
20.2
$
9.6
$
6.2
$
3.8
Free cash flow (usage)
The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow (usage) trends in the Company's business.
Reconciliation of U.S. GAAP net cash provided by (used in) operating activities for the three months ended May 31, 2026 and May 31, 2025 to free cash flow (usage) is reflected in the table below:
For the Three Months Ended (in millions)
May 31, 2026
May 31, 2025
Net cash provided by (used in) operating activities
$
4.6
$
(18.0
)
Acquisition of property, plant and equipment
(2.9
)
(0.9
)
Free cash flow (usage)
$
1.7
$
(18.9
)
Key Metrics
The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company's current performance and estimated future performance. Readers are cautioned that Secure Communications annual recurring revenue ("ARR") and Secure Communications dollar-based net retention rate ("DBNRR") do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies.
Comparative breakdowns of certain key metrics for the three months ended or as at May 31, 2026 and May 31, 2025 are set forth below:
For the Three Months Ended (in millions)
May 31, 2026
May 31, 2025
Change
Secure Communications Annual Recurring Revenue
$
220
$
209
$
11
Secure Communications Dollar-Based Net Retention Rate
An autonomous vehicle is seen at the BlackBerry QNX headquarters in Ottawa, Ontario, Canada, February 15, 2019. REUTERS/Chris Wattie Purchase Licensing Rights, opens new tab
June 25 (Reuters) - BlackBerry (BB.TO), opens new tab raised its annual revenue forecast on Thursday, betting on continued momentum for its QNX division following the completion of its turnaround efforts, sending its U.S.-listed shares up around 8% in premarket trading.
Once a powerhouse in the smartphone industry, BlackBerry has shifted its focus towards software for connected devices and self-driving vehicles over the past several years.
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BlackBerry's QNX division, which provides secure real-time operating systems for mission-critical embedded systems most notably in the automotive sector, has maintained its strong growth trajectory, with revenue surging nearly 26% to $72.3 million during the first quarter ending May 31.
QNX has a backlog of almost $1 billion in future royalties.
"We see more of our QNX customers are leaning into next-generation software defined vehicles. They're working with us closely to deploy our platform across the board to help them meet those needs, so we actually see really healthy demand," CEO John Giamatteo told Reuters.
BlackBerry now expects full-year 2027 revenue of between $594 million and $621 million, above its earlier projection of between $584 million and $611 million.
It forecast annual QNX revenue of $295 million to $312 million, compared with its previous range of $290 million to $307 million.
BlackBerry's secure communications division, which encompasses encrypted voice, messaging and critical event management solutions, reported a 24% rise in revenue to $73.6 million.
A vast majority of the secure communications business is government, and a significant portion of the pipeline is also government, CFO Tim Foote said.
The company posted total revenue of $152.9 million for the first quarter, up 26% from the same period a year earlier.
Reporting by Juby Babu in Mexico City; Editing by Anil D'Silva
Our Standards: The Thomson Reuters Trust Principles., opens new tab
BlackBerry lifted its fiscal 2027 outlook on higher first-quarter results, driven by embedded-software growth and expanding opportunities with artificial intelligence.
Key Takeaways BlackBerry upgraded its UEM platform to support evolving enterprise and government security needs.New updates add stronger policy controls, malware detection and simpler profile administration.BlackBerry aims to compete in sovereign IT, cybersecurity and zero-trust adoption markets. As organizations worldwide face increasing cybersecurity threats, stricter data sovereignty regulations and the growing complexity of managing diverse device ecosystems, endpoint management has become a strategic priority. Against this backdrop, BlackBerry Limited’s (BB - Free Report) Secure Communications division recently upgraded its Unified Endpoint Management (UEM) platform, aimed at addressing the evolving needs of enterprises, governments and highly regulated industries.
UEM solutions have become crucial because they enable IT teams to manage multiple device types from a single console, enforce security policies consistently, protect sensitive corporate data, support BYOD and remote work initiatives, and ensure compliance with regulations. BlackBerry UEM addresses these needs through a centralized management framework that supports iOS, Android, Windows, ChromeOS and other enterprise platforms. The platform integrates mobile device management, mobile application management, secure communications, identity management and compliance monitoring.
BlackBerry continues to enhance UEM through recent updates, adding improved policy management, expanded controls for Android and iOS, better malware detection, simplified profile administration and stronger infrastructure support. These updates make the platform easier to deploy and manage, while also enhancing security visibility. Increasing geopolitical tensions and concerns about cyber warfare have prompted governments to modernize their secure communications infrastructure.
The endpoint management market continues to expand as organizations manage increasingly diverse device fleets and face mounting cybersecurity challenges. BlackBerry’s enhancements position the company to compete more effectively in several high-growth segments, such as sovereign IT infrastructure, government cybersecurity, enterprise mobility management, post-quantum security, managed security services and zero-trust architecture adoption. This differentiated positioning may allow BB to secure higher-value contracts and deepen relationships with existing customers.
How Does BB’s UEM Stack Up Against Cybersecurity Bigshots?CrowdStrike (CRWD - Free Report) remains leveraged to sustained cybersecurity demand as customers consolidate tools on the Falcon platform and expand module adoption through subscriptions and Falcon Flex. Rising cyber threats and data breaches continue to drive demand for cybersecurity solutions. It is well-positioned to benefit as enterprises prioritize modern defenses and vendor consolidation. Its Falcon platform spans endpoint, cloud, identity and data protection, helping customers reduce costs while strengthening security. With the cybersecurity market expected to witness a double-digit CAGR, CrowdStrike enjoys a favorable backdrop for continued market-share gains. CrowdStrike is expanding its customer base, driving revenue and creating long-term upsell opportunities within existing accounts.
Palo Alto Networks (PANW - Free Report) benefits from higher cybersecurity priority as enterprises deploy AI and look to consolidate vendors onto fewer platforms. Its platform benefits from a telemetry scale that processes more than 17 petabytes of daily telemetry, a data foundation that supports training, anomaly detection and faster outcomes. In May, PANW launched Idira, an identity security platform designed to manage and secure human, machine and AI agent identities across enterprises. Recently, PANW and Deutsche Telekom launched Sovereign Cortex with T Security, bringing the Cortex AI-driven SecOps platform to Europe’s highly regulated industries. The solution addresses growing cybersecurity and data sovereignty requirements.
BB Price Performance, Valuation & EstimatesShares of BlackBerry have surged 177.9% in the past three months compared with the Internet-Software industry’s growth of 2.7%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, BB is trading at 7.2, higher than the industry’s multiple of 4.5.
Image Source: Zacks Investment Research
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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BlackBerry (BB - Free Report) closed at $8.83 in the latest trading session, marking a -3.71% move from the prior day. This change lagged the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.35%.
Prior to today's trading, shares of the cybersecurity software and services company had gained 47.67% outpaced the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 1.56%.
Market participants will be closely following the financial results of BlackBerry in its upcoming release. The company plans to announce its earnings on June 25, 2026. In that report, analysts expect BlackBerry to post earnings of $0.03 per share. This would mark year-over-year growth of 50%.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.17 per share and a revenue of $600.2 million, indicating changes of +6.25% and +9.31%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for BlackBerry. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. BlackBerry presently features a Zacks Rank of #3 (Hold).
Investors should also note BlackBerry's current valuation metrics, including its Forward P/E ratio of 52.9. This valuation marks a premium compared to its industry average Forward P/E of 18.64.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
BlackBerry Limited is rated a Hold ahead of its fiscal Q1 2027 report, with prior share gains driven by optimism in QNX and GEM segments. QNX and Secure Communications are key growth drivers, with QNX growing 14% and a $950 million backlog supporting future revenue. Cost restructuring, including the Cylance divestiture, removed a $150 million run rate, enabling eight consecutive quarters of improving GAAP net income.
Key Takeaways BlackBerry's QNX royalty backlog reached about $950M, supporting durable multi-year growth visibility.BB expects QNX revenue of $60-$64M and Secure Comms revenue of $66-$70M for fiscal Q1.BlackBerry sees positive operating cash flow for the first time in three years despite risks. BlackBerry Limited (BB - Free Report) is set to report first-quarter fiscal 2027 results on June 25.
The Zacks Consensus Estimate for the bottom line is currently pegged at 3 cents and has remained unchanged over the past 60 days. The company expects non-GAAP EPS to be in the range of 2-3 cents.
The company expects fiscal first-quarter revenues to be in the $132-$140 million range.
BlackBerry’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, while meeting once, with the average beat being 115%.
Image Source: Zacks Investment Research
What Our Model Unveils for BBOur proven model does not conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
BB has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Catalysts for BB’s Q1 EarningsBlackBerry enters this earnings season from a position of improving operational strength along with growing momentum across its QNX and Secure Communications divisions. QNX's royalty backlog has expanded to approximately $950 million, with new additions significantly exceeding recognized revenue, providing strong visibility into durable multi-year growth. The continued expansion of backlog highlights a business that is compounding rather than slowing, supported by its leadership in automotive and growing opportunities in physical AI, robotics, industrial, medical and other emerging markets.
While quarterly results can be uneven due to the timing of design wins and development tool purchases, the long-term growth outlook remains strong. Most revenue from new design wins is realized only after products enter production, typically two to three years later. After delivering 14% growth in fiscal 2026 despite a softer first quarter, management expects a similar pattern in fiscal 2027 and believes QNX will remain a Rule of 40 business. QNX is evolving into a high-quality, scalable and profitable growth engine. Beyond automotive, it is gaining traction in industrial automation, medical devices and robotics, with a growing pipeline increasingly converting into signed deals. Higher ASPs in these markets are supporting margin expansion, and GEM now represents nearly half of the SDP 8.0 pipeline, highlighting greater diversification.
Non-automotive markets account for about 20% of QNX revenue and may ultimately present a larger opportunity than automotive. Robotics, driven by the rise of physical AI, is a promising long-term growth area, backed by QNX’s expertise in autonomous systems. BlackBerry’s durable growth is anchored in a strong, multi-layered moat across QNX and Secure Communications. At scale, QNX also benefits from a cost advantage that in-house solutions struggle to replicate. Similarly, Secure Comm operates in mission-critical settings where certifications and long-standing relationships create high barriers to entry. Rather than a threat, BB sees AI as a tailwind, enhancing productivity, accelerating development and reinforcing its position in safety-critical and physical AI applications.
The Secure Comms business is benefiting from the growing demand for digital sovereignty, as governments and enterprises seek secure communication platforms that protect sensitive data from foreign access. A key validation of this trend was the Government of Canada's expanded adoption of BlackBerry's SecuSUITE platform, which is expected to contribute meaningfully to fiscal 2027 revenue. The segment nearly achieved the Rule of 40 in the fiscal fourth quarter, led by rising NATO and global defense spending. Expanded support for iOS alongside Android has strengthened the pipeline, while investments in Secusmart iOS support, FedRAMP High certification for AtHoc and UEM BSI certification are helping stabilize UEM and drive growth in AtHoc and Secusmart.
For the Secure Comm unit, revenues are estimated to be in the band of $66-$70 million. For the QNX business, revenues are expected to be in the range of $60-$64 million for the fiscal first quarter. Licensing & Other revenues are expected to be roughly $6 million. Adjusted EBITDA is expected to be between $14 million and $22 million. QNX segment adjusted EBITDA is estimated at $4-$8 million, while Secure Comm segment adjusted EBITDA is projected at $14-$18 million.
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BlackBerry is driving shareholder returns by prudently allocating capital across its three profitable divisions—QNX, Secure Communications and Licensing—all of which contribute positive adjusted EBITDA. The fiscal first quarter is expected to be a seasonal low for cash flow due to billing and payment timing, but for the first time in three years, BlackBerry anticipates positive operating cash flow of breakeven to $10 million.
Despite the improving trajectory, BB is facing multiple challenges. QNX revenue is still partially tied to automotive manufacturing cycles. Macroeconomic uncertainty, particularly in the automotive sector, is adversely impacting customer buying decisions, with some OEMs delaying projects due to supply chain concerns and tariff-related disruptions. Global production slowdowns or weaker electric vehicle demand could affect licensing revenue. Dependence on government procurement cycles and broader macroeconomic volatility continues to pose risks, especially within the Secure Comm.
Moreover, BB competes with much larger cybersecurity firms, such as CrowdStrike Holdings, Inc. (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) , that invest billions annually in R&D. To address the constant risk of technological obsolescence, BB needs to invest heavily in R&D, thereby depleting margins.
BB Stock vs. IndustryBB’s shares have gained 109.5% in the past six months, significantly outpacing the Internet Software industry’s fall of 15.7%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered declines of 18.4% and 8.7%, respectively.
Image Source: Zacks Investment Research
Blackberry has outperformed its peers (within the cybersecurity space). PANW has gained 52.9%, while CrowdStrike is up 43% over the same time frame.
Valuation After Recent GainsRegarding the price/book ratio, BB is trading at 6.58, 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 8.48X and 37.29X, respectively, compared with the Security industry’s multiple of 26.02X.
Investment Outlook: Buy, Hold, or Wait?For long-term investors, BlackBerry appears increasingly attractive. The company now boasts improving profitability, positive cash generation, strong exposure to automotive software, growing cybersecurity demand and expansion into AI-enabled industrial markets. These factors support a stronger long-term investment thesis.
The upcoming fiscal first-quarter earnings report will be an important test of whether BlackBerry's turnaround is sustainable. Strong execution, continued QNX growth and solid guidance could further boost investor confidence. For current shareholders, holding through earnings may be worthwhile if they believe in the company's long-term growth story. For new investors, the report could provide clearer evidence on whether BlackBerry's recent momentum reflects a lasting recovery rather than a short-term rebound.
BlackBerry UEM advances AI-assisted operations and post-quantum readiness while strengthening data residency and cloud independence with expanded macOS support for enterprise, defense and governments
WATERLOO, ON / ACCESS Newswire / June 16, 2026 / BlackBerry Secure Communications, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), today announced enhanced capabilities coming to BlackBerry® Unified Endpoint Management (UEM) designed to meet growing demand for sovereign endpoint control across enterprise, government, and regulated industries.
Sovereign control over endpoints is becoming a mainstream requirement well beyond traditional regulated sectors, driven by tightening data-residency requirements across Europe, finalized post-quantum cryptography standards, and accelerating adoption of Apple devices in environments that cannot route management through a public cloud. The upcoming UEM release extends the BlackBerry platform's sovereign endpoint management capabilities across AI-assisted operations, post-quantum cryptography, macOS, multi-tenant environments and secure file sharing.
"Organizations should not have to choose between modern capabilities and sovereign control," said Nathan Jenniges, Senior Vice President and General Manager, BlackBerry Secure Communications. "These enhancements enable customers to adopt AI, prepare for the post‑quantum era, and manage diverse device fleets on infrastructure they own and control."
As enterprises and governments expand macOS deployments, many endpoint management solutions remain tethered to vendor‑hosted clouds, introducing jurisdictional exposure that European and public‑sector buyers are actively designing out of their environments.
BlackBerry is expanding macOS management within UEM through its on‑premises deployment model, enabling organizations to manage Apple, Windows and Android devices from a single console without cloud dependency or third‑party data paths. BlackBerry UEM is the first and only endpoint management solution certified by Germany's Federal Office for Information Security under Common Criteria, validated for managing Apple and Samsung devices in government environments.
To address emerging cryptographic risks, BlackBerry UEM is advancing its post‑quantum roadmap by upgrading cryptographic libraries on devices and aligning with NIST post‑quantum standards as part of its path toward FIPS 140‑3 accreditation. These enhancements embed quantum‑resistant protections from the UEM server through to secured applications on end‑user devices. Combined with UEM's BSI Common Criteria certification and NATO Restricted alignment, this provides regulated buyers in Europe and beyond with a migration path grounded in independently validated credentials rather than reliance on a single national standard.
The release also introduces expanded multi‑tenant management capabilities to support service providers and complex enterprise and government estates that require strong separation between departments, agencies or customers. A modernized UEM console and refreshed administrator experience reduce operational complexity while supporting scale in sovereign, on‑premises environments.
Secure AI-assisted capabilities are optional and can be enabled at an organization's discretion, improving efficiency while operating within BlackBerry's security first architecture and under organizational control. Rounding out the release, enhancements to BlackBerry's secure file-sharing capability embed access controls directly into each document, so protection travels with the file itself rather than depending on a network perimeter, addressing exfiltration risk in zero-trust environments.
The new capabilities are expected to be available in the summer of 2026, with select management and multi‑tenant console enhancements becoming generally available later in 2026. To learn more about the latest BlackBerry UEM enhancement, read the blog.
###
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.
Global study of 1,000 robotics developers reveals growing focus on software foundations to address performance, security, and scalability challenges Key Findings from the "Inside the Robot: Architecture Benchmark Report": Nearly nine in ten robotics developers (89%) say Physical AI is critical to their future plans. Deterministic, real-time behaviour is essential for 95% of robotics developers.
BlackBerry Limited (BB) is positioned to benefit from the rise of physical AI, with QNX poised as a leading robotics operating system. QNX sales grew 14% in FY26 and 20% in Q4, supported by a $950 million backlog, signaling a successful turnaround and accelerating growth. BB's strong balance sheet, net cash of $232 million, and ongoing share buybacks enhance downside protection and capital allocation.
BlackBerry Ltd (NYSE:BB) shares are trading higher during Wednesday's premarket session, hitting a new 52-week high, as traders continue to react to the stock's breakout to fresh highs following a government-security certification update and renewed attention on its software story.
