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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 BB
Our 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.
BlackBerry 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.
Image Source: Zacks Investment Research
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. Industry
BB’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 Gains
Regarding 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.
View the Zacks #1 Rank List
Image: Zacks
BB Stock Before Q1 Earnings: What's the Right Move for Investors?
Key Takeaways
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 BB
Our 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 Earnings
BlackBerry 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.
Image Source: Zacks Investment Research
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. Industry
BB’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 Gains
Regarding 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.