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Is BB on Track for $508M-$538M FY26 Revenues From QNX & Secure Comms?
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Key Takeaways
BB now targets fiscal 2026 revenue of $508-$538M, up from its prior $504-$534M forecast.
QNX powers 255M vehicles; BB eyes more growth in robotics, automation and medical devices.
BB ups Secure Comms outlook to $234-$244M, driven by Secusmart deals with the German government.
BlackBerry Limited (BB - Free Report) currently expects revenues between $508 million and $538 million for fiscal 2026, an improvement from the previous target of $504-$534 million. It boasts a strong foothold in the fields of embedded software, cybersecurity and secure communications. Driving this momentum are two of its core business pillars — QNX software and Secure Communications.
QNX is widely adopted across many industries, especially in the automotive sector, where it powers more than 255 million vehicles worldwide. This includes applications in infotainment systems, advanced driver-assistance systems (ADAS), digital cockpits and telematics. The company is positioned to grow QNX profitably by leveraging its strong market presence and favorable industry trends. BlackBerry has two main growth strategies: expanding into areas like robotics, industrial automation and medical devices, and increasing its role in automobiles through built-in middleware.
Plagued by increasing cyber threats and the need for secure mobile communications in defense and intelligence sectors, BB’s role as a trusted security partner is becoming more important than ever. Following the divestiture of Cylance, the company is now focusing more on the Secure Communications unit, supported by a stronger financial position. This segment is strengthened by solid Secusmart sales, especially large deals with the German government. The global pipeline is expanding, as governments seek more secure options than consumer-grade platforms. Despite longer sales cycles, management remains confident about closing more Secusmart deals this year.
With a strong pipeline ahead, it has raised full-year Secure Comms revenue guidance by $4 million to $234–$244 million. Amid market fluctuations, it has maintained its full-year revenue guidance of $250–$270 million for the QNX unit.
However, ongoing macroeconomic challenges, especially in the automotive sector, are causing customers to reconsider or delay purchases, with some OEMs postponing projects due to supply chain issues and tariff pressures. This makes BlackBerry’s QNX unit vulnerable to fluctuations in production levels, which could result in lower royalty revenues in the fiscal second quarter — a risk that is already factored into its cautious revenue forecast of $55–$60 million.
What’s Driving a Bold Vision for BB’s Competitors?
Like BlackBerry, Palo Alto Networks (PANW - Free Report) offers cybersecurity solutions. Though they focus on different areas, both are strong players in the fast-growing cybersecurity market, fueled by rising digital threats. PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy.
For fiscal 2025, Palo Alto Networks now expects revenues between $9.17 billion and $9.19 billion, implying a 14% annual increase compared with the earlier projected range of $9.14-$9.19 billion. It projects Next-Generation Security annual recurring revenues (ARR) of $5.52–$5.57 billion (up 31–32% year over year) and remaining performance obligations of $15.2–$15.3 billion (up 19–20%).
CrowdStrike Holdings, Inc. (CRWD - Free Report) is a top provider of generation endpoint protection, threat intelligence and cyberattack response services. It continues to benefit from the rising demand for cybersecurity solutions due to a slew of data breaches and the increasing need for secure networking products amid the growing hybrid working trend. Continued digital transformation and cloud migration strategies adopted by organizations are key catalysts.
The company updated guidance for fiscal 2026. For the full fiscal year, CRWD expects revenues between $4.7435 billion and $4.8055 billion. The non-GAAP operating income for fiscal 2025 is projected in the band of $970.8-$1010.8 million. The company expects non-GAAP net income in the range of $878.7-$909.7 million. Non-GAAP earnings are anticipated in the band of $3.44-$3.56.
BB’s Price Performance, Valuation & Estimates
Shares of BB have gained 87.6% in the past year compared with the Zacks Internet – Software industry’s growth of 39.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, BB trades at a forward price-to-sales of 5.02X, lower than the industry’s average of 5.89X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BB’s earnings for fiscal 2026 has remained unchanged over the past 60 days.
Image: Bigstock
Is BB on Track for $508M-$538M FY26 Revenues From QNX & Secure Comms?
Key Takeaways
BlackBerry Limited (BB - Free Report) currently expects revenues between $508 million and $538 million for fiscal 2026, an improvement from the previous target of $504-$534 million. It boasts a strong foothold in the fields of embedded software, cybersecurity and secure communications. Driving this momentum are two of its core business pillars — QNX software and Secure Communications.
QNX is widely adopted across many industries, especially in the automotive sector, where it powers more than 255 million vehicles worldwide. This includes applications in infotainment systems, advanced driver-assistance systems (ADAS), digital cockpits and telematics. The company is positioned to grow QNX profitably by leveraging its strong market presence and favorable industry trends. BlackBerry has two main growth strategies: expanding into areas like robotics, industrial automation and medical devices, and increasing its role in automobiles through built-in middleware.
Plagued by increasing cyber threats and the need for secure mobile communications in defense and intelligence sectors, BB’s role as a trusted security partner is becoming more important than ever. Following the divestiture of Cylance, the company is now focusing more on the Secure Communications unit, supported by a stronger financial position. This segment is strengthened by solid Secusmart sales, especially large deals with the German government. The global pipeline is expanding, as governments seek more secure options than consumer-grade platforms. Despite longer sales cycles, management remains confident about closing more Secusmart deals this year.
With a strong pipeline ahead, it has raised full-year Secure Comms revenue guidance by $4 million to $234–$244 million. Amid market fluctuations, it has maintained its full-year revenue guidance of $250–$270 million for the QNX unit.
BlackBerry Limited Price and Consensus
BlackBerry Limited price-consensus-chart | BlackBerry Limited Quote
However, ongoing macroeconomic challenges, especially in the automotive sector, are causing customers to reconsider or delay purchases, with some OEMs postponing projects due to supply chain issues and tariff pressures. This makes BlackBerry’s QNX unit vulnerable to fluctuations in production levels, which could result in lower royalty revenues in the fiscal second quarter — a risk that is already factored into its cautious revenue forecast of $55–$60 million.
What’s Driving a Bold Vision for BB’s Competitors?
Like BlackBerry, Palo Alto Networks (PANW - Free Report) offers cybersecurity solutions. Though they focus on different areas, both are strong players in the fast-growing cybersecurity market, fueled by rising digital threats. PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy.
For fiscal 2025, Palo Alto Networks now expects revenues between $9.17 billion and $9.19 billion, implying a 14% annual increase compared with the earlier projected range of $9.14-$9.19 billion. It projects Next-Generation Security annual recurring revenues (ARR) of $5.52–$5.57 billion (up 31–32% year over year) and remaining performance obligations of $15.2–$15.3 billion (up 19–20%).
CrowdStrike Holdings, Inc. (CRWD - Free Report) is a top provider of generation endpoint protection, threat intelligence and cyberattack response services. It continues to benefit from the rising demand for cybersecurity solutions due to a slew of data breaches and the increasing need for secure networking products amid the growing hybrid working trend. Continued digital transformation and cloud migration strategies adopted by organizations are key catalysts.
The company updated guidance for fiscal 2026. For the full fiscal year, CRWD expects revenues between $4.7435 billion and $4.8055 billion. The non-GAAP operating income for fiscal 2025 is projected in the band of $970.8-$1010.8 million. The company expects non-GAAP net income in the range of $878.7-$909.7 million. Non-GAAP earnings are anticipated in the band of $3.44-$3.56.
BB’s Price Performance, Valuation & Estimates
Shares of BB have gained 87.6% in the past year compared with the Zacks Internet – Software industry’s growth of 39.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, BB trades at a forward price-to-sales of 5.02X, lower than the industry’s average of 5.89X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BB’s earnings for fiscal 2026 has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
BB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.