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BlackBerry Raises Outlook as QNX Growth Drives Revenue and Stock Rally

A near-$1 billion QNX royalty backlog signals deeper demand for software-defined vehicles, raising BlackBerry's profit outlook.

Overview

  • BlackBerry, which reported results Thursday, posted first-quarter revenue of $152.9 million, a 26% year-over-year increase, and delivered GAAP net income of $8.5 million with adjusted earnings of $0.04 per share.
  • Management raised full-year fiscal 2027 revenue guidance to $594 million–$621 million and boosted adjusted EBITDA guidance to $119 million–$141 million after the stronger quarter.
  • QNX drove the quarter with $72.3 million in revenue, an 86% gross margin for the division, and a royalty backlog approaching $1 billion that management says reflects multi-year demand for software-defined vehicles and other safety-critical systems.
  • The Secure Communications unit produced $73.6 million in revenue, supported mainly by recurring government contracts and a Canadian federal extension that helped lift the segment's annual recurring revenue to about $220 million.
  • Markets reacted sharply as the stock jumped roughly 19–20% and single-day trading hit about 38.3 million shares, a volume level that exceeded BlackBerry's buyback authorization while the company held about $423 million in cash and investments.