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BB vs. CRWD: Which Cybersecurity Stock Is the Better Pick at Present?
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Key Takeaways
BB and CrowdStrike are positioned to benefit as cybersecurity demand rises across AI and cloud environments.
BlackBerry's QNX backlog hit roughly $950M, while Secure Communications returned to 8% quarterly growth.
CrowdStrike posted 26% revenue growth as Falcon Flex and newer categories continued gaining traction.
The global cybersecurity landscape has evolved drastically as organizations move to multi-cloud environments and implement AI extensively. This creates a more complex attack surface, necessitating advanced cybersecurity solutions for endpoints, networks and cloud environments. Given this, cybersecurity has become a key baseline requirement.
High-profile data breaches have heightened awareness and urgency across industries, leading to heavy investment in cyber defense.
Per a Grand View Research report, the cybersecurity market is projected to witness a CAGR of 11.9% from 2026 to 2033. This creates strong tailwinds for companies like BlackBerry (BB - Free Report) and CrowdStrike (CRWD - Free Report) and others operating in this fast-evolving industry.
So, now the question arises: Which stock makes for a better investment pick at present? Let’s dive into the pros and cons of each company.
The Case for BB
Once a smartphone giant, BlackBerry has now pivoted its focus to cybersecurity and Internet of Things (IoT) solutions. BlackBerry’s Secure Communications division now consists of BlackBerry Unified Endpoint Management (“UEM”), BlackBerry SecuSUITE and BlackBerry AtHoc solutions. Last year, BB offloaded its Cylance business to Arctic Wolf and reviewed the cost structure of the Secure Communications division. This marked a turning point for the company.
BlackBerry is now focusing on its QNX and cybersecurity businesses. QNX is a Real-Time Operating System for embedded systems widely used in automotive and is now gaining traction in physical AI, medical, robotics, industrial and emerging markets. This division’s royalty backlog reached roughly $950 million, offering clear visibility into sustained, multi-year growth. The growing relevance of software-defined vehicles is fueling QNX’s momentum.
The Secure Communications business is showing signs of resurgence, delivering 8% year-over-year growth in the fiscal fourth quarter of 2026 and approaching “Rule of 40” performance. Annual recurring revenues (“ARR”) rose 1% sequentially to $218 million, up 5% year over year, while DBNRR improved to 94%, gaining 2 points sequentially. Rising NATO and global defense spending is driving strong momentum in BlackBerry’s Secure Communications unit.
BlackBerry Limited Price, Consensus and EPS Surprise
The growth is also fueled by a powerful macro trend — digital sovereignty. Governments and enterprises increasingly demand secure, sovereign communication systems that protect sensitive data from foreign access. A major validation came from the Government of Canada expanding its partnership and increasing adoption of BlackBerry’s Secusmart licenses across federal agencies.
BlackBerry expects Secure Communications to return to full-year growth in fiscal 2027 for the first time in six years, marking a crucial inflection point. Fiscal 2027 revenues are projected to grow 4-8% to $270-$280 million, with adjusted EBITDA forecasted at $57-$65 million. For fiscal 2027, BlackBerry expects QNX revenues of $290-$307 million and overall revenues to grow 6-11% to $584-$611 million.
Though the cybersecurity business is gaining strength, BlackBerry remains heavily reliant on its QNX business, which in turn is influenced by macro conditions. Some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk. BlackBerry faces increasing competitive pressures in both QNX and cybersecurity businesses.
The Case for CRWD
Sunnyvale, CA-based CrowdStrike is one of the leading pureplay companies in the cybersecurity space. 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.
CRWD has been selected as a cybersecurity partner by leading AI research companies such as OpenAI and Anthropic and continues to collaborate with major technology and consulting firms. Another important catalyst is Falcon Flex, the company’s subscription model. CRWD added more than 300 Falcon Flex accounts in the fiscal first quarter.
CrowdStrike is seeing strong adoption across cloud, identity and next-gen SIEM, with these newer categories exceeding $2 billion in ARR. Notably, AI Detection and Response (“AIDR”) has seen rapid traction, with ending ARR growing more than 250% sequentially, highlighting strong early demand. Management believes that AIDR could ultimately represent a larger market opportunity than endpoint detection and response.
The company expects current 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 from its prior guidance.
Despite positives, risks remain. First, the AI-driven opportunity remains in its early stages. The company’s raised guidance is tied to the AI narrative and associated cybersecurity spending. Any slowdown in AI deployment or budget revisions could weigh down on growth expectations. Execution risk also remains as the company expands into multiple new product categories. Competitive pressures are intensifying as rivals aggressively expand to capture the lucrative opportunity.
Finally, as CrowdStrike continues to scale, maintaining high growth rates becomes more challenging. CRWD reported a growth rate of 29% in fiscal 2025 and 22% in fiscal 2026. For fiscal 2027, management expects revenues to be $5,915-$5,959 million, implying 23-24% growth.
Price Performance and Valuation for BB & CRWD
Year to date, BB and CRWD have registered gains of 142.5% and 45.6%, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales multiple, BB is trading at 8.77X, lower than CRWD's 27.1X.
Image Source: Zacks Investment Research
How Does the Zacks Consensus Estimate Compare for BB & CRWD?
Analysts have kept their earnings estimates unchanged for BB for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Meanwhile, for CRWD, there is a marginal upward estimate revision.
Image Source: Zacks Investment Research
BB or CRWD: Which Is a Better Pick?
Both BB and CRWD are well-positioned to gain from the rapidly growing cybersecurity market. BB, at present, carries a Zacks Rank #3 (Hold) while CrowdStrike has a Zacks Rank #4 (Sell). Hence, in terms of Zacks Rank, BB seems to be a better pick at the moment.
View the Zacks #1 Rank List
Image: Bigstock
BB vs. CRWD: Which Cybersecurity Stock Is the Better Pick at Present?
Key Takeaways
The global cybersecurity landscape has evolved drastically as organizations move to multi-cloud environments and implement AI extensively. This creates a more complex attack surface, necessitating advanced cybersecurity solutions for endpoints, networks and cloud environments. Given this, cybersecurity has become a key baseline requirement.
High-profile data breaches have heightened awareness and urgency across industries, leading to heavy investment in cyber defense.
Per a Grand View Research report, the cybersecurity market is projected to witness a CAGR of 11.9% from 2026 to 2033. This creates strong tailwinds for companies like BlackBerry (BB - Free Report) and CrowdStrike (CRWD - Free Report) and others operating in this fast-evolving industry.
So, now the question arises: Which stock makes for a better investment pick at present? Let’s dive into the pros and cons of each company.
The Case for BB
Once a smartphone giant, BlackBerry has now pivoted its focus to cybersecurity and Internet of Things (IoT) solutions. BlackBerry’s Secure Communications division now consists of BlackBerry Unified Endpoint Management (“UEM”), BlackBerry SecuSUITE and BlackBerry AtHoc solutions. Last year, BB offloaded its Cylance business to Arctic Wolf and reviewed the cost structure of the Secure Communications division. This marked a turning point for the company.
BlackBerry is now focusing on its QNX and cybersecurity businesses. QNX is a Real-Time Operating System for embedded systems widely used in automotive and is now gaining traction in physical AI, medical, robotics, industrial and emerging markets. This division’s royalty backlog reached roughly $950 million, offering clear visibility into sustained, multi-year growth. The growing relevance of software-defined vehicles is fueling QNX’s momentum.
The Secure Communications business is showing signs of resurgence, delivering 8% year-over-year growth in the fiscal fourth quarter of 2026 and approaching “Rule of 40” performance. Annual recurring revenues (“ARR”) rose 1% sequentially to $218 million, up 5% year over year, while DBNRR improved to 94%, gaining 2 points sequentially. Rising NATO and global defense spending is driving strong momentum in BlackBerry’s Secure Communications unit.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote
The growth is also fueled by a powerful macro trend — digital sovereignty. Governments and enterprises increasingly demand secure, sovereign communication systems that protect sensitive data from foreign access. A major validation came from the Government of Canada expanding its partnership and increasing adoption of BlackBerry’s Secusmart licenses across federal agencies.
BlackBerry expects Secure Communications to return to full-year growth in fiscal 2027 for the first time in six years, marking a crucial inflection point. Fiscal 2027 revenues are projected to grow 4-8% to $270-$280 million, with adjusted EBITDA forecasted at $57-$65 million. For fiscal 2027, BlackBerry expects QNX revenues of $290-$307 million and overall revenues to grow 6-11% to $584-$611 million.
Though the cybersecurity business is gaining strength, BlackBerry remains heavily reliant on its QNX business, which in turn is influenced by macro conditions. Some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk. BlackBerry faces increasing competitive pressures in both QNX and cybersecurity businesses.
The Case for CRWD
Sunnyvale, CA-based CrowdStrike is one of the leading pureplay companies in the cybersecurity space. 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.
CRWD has been selected as a cybersecurity partner by leading AI research companies such as OpenAI and Anthropic and continues to collaborate with major technology and consulting firms. Another important catalyst is Falcon Flex, the company’s subscription model. CRWD added more than 300 Falcon Flex accounts in the fiscal first quarter.
CrowdStrike is seeing strong adoption across cloud, identity and next-gen SIEM, with these newer categories exceeding $2 billion in ARR. Notably, AI Detection and Response (“AIDR”) has seen rapid traction, with ending ARR growing more than 250% sequentially, highlighting strong early demand. Management believes that AIDR could ultimately represent a larger market opportunity than endpoint detection and response.
The company expects current 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 from its prior guidance.
CrowdStrike Price, Consensus and EPS Surprise
CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote
Despite positives, risks remain. First, the AI-driven opportunity remains in its early stages. The company’s raised guidance is tied to the AI narrative and associated cybersecurity spending. Any slowdown in AI deployment or budget revisions could weigh down on growth expectations. Execution risk also remains as the company expands into multiple new product categories. Competitive pressures are intensifying as rivals aggressively expand to capture the lucrative opportunity.
Finally, as CrowdStrike continues to scale, maintaining high growth rates becomes more challenging. CRWD reported a growth rate of 29% in fiscal 2025 and 22% in fiscal 2026. For fiscal 2027, management expects revenues to be $5,915-$5,959 million, implying 23-24% growth.
Price Performance and Valuation for BB & CRWD
Year to date, BB and CRWD have registered gains of 142.5% and 45.6%, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales multiple, BB is trading at 8.77X, lower than CRWD's 27.1X.
Image Source: Zacks Investment Research
How Does the Zacks Consensus Estimate Compare for BB & CRWD?
Analysts have kept their earnings estimates unchanged for BB for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Meanwhile, for CRWD, there is a marginal upward estimate revision.
Image Source: Zacks Investment Research
BB or CRWD: Which Is a Better Pick?
Both BB and CRWD are well-positioned to gain from the rapidly growing cybersecurity market. BB, at present, carries a Zacks Rank #3 (Hold) while CrowdStrike has a Zacks Rank #4 (Sell). Hence, in terms of Zacks Rank, BB seems to be a better pick at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.