We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
QNX revenues rose 27% to a record $80.3 million, supported by licenses, services and royalties.
BB cut Secure Communications' FY27 revenue outlook amid government timing and geopolitical uncertainty.
BlackBerry Limited (BB - Free Report) delivered a strong second quarter of fiscal 2027, prompting an upward revision to the full-year outlook. Strong QNX momentum, expanding profitability and healthier cash generation anchored the performance, but the key question remains whether this momentum can be sustained.
BlackBerry now expects fiscal 2027 revenues of $616-$636 million, up $19 million at the midpoint from its prior forecast and implying roughly 14% year-over-year growth. Adjusted EBITDA outlook is now projected to be in the range of $141-$158 million, representing about 43% growth at the midpoint. Adjusted EPS guidance increased to 19-22 cents, while operating cash flow is now expected to reach approximately $115 million. Earlier, non-GAAP EPS was estimated at 16-20 cents, while operating cash flow was expected at approximately $100 million.
Fiscal second-quarter revenues came in at $163.3 million, up 26% and 14.2% above the Zacks Consensus Estimate. Record QNX revenues and a large licensing arrangement supported the upside. QNX revenues increased 27% year over year to $80.3 million, while the segment adjusted EBITDA rose 41% to $29 million, representing a 36% margin. Performance was broad-based across development licenses, professional services and royalties. Management highlighted the conversion of its previously reported $950 million QNX backlog as newer design wins move into production.
QNX also secured its first Alloy Kore design win with Coretura, the commercial-vehicle software joint venture between Daimler Truck and Volvo Group. The award carries estimated future royalties of more than $100 million and represents the largest design win in QNX history.
BlackBerry consequently raised its fiscal-year QNX revenue forecast to $315-$325 million and adjusted EBITDA guidance to $95-$105 million.
Licensing revenues climbed to $22.1 million from $6.6 million a year ago, driven primarily by a new licensing arrangement. At the company level, adjusted EBITDA increased 81% to $47 million.
Operating cash flow improved to $29.3 million from $3.4 million in the year-ago quarter. Free cash flow was $28.1 million, up from $2.6 million. BlackBerry ended the quarter with nearly $447 million in cash and investments.
However, Secure Communications remains an area to monitor. BlackBerry lowered the segment’s fiscal-year revenue outlook to $260-$270 million, taking a more cautious view on the timing of government opportunities amid broader geopolitical and trade uncertainty, including Canada-U.S. tensions.
Looking at Guidance and Revenue Numbers for Competitors
In the broader cybersecurity market, BlackBerry operates alongside several leading names, including CrowdStrike (CRWD - Free Report) . While BlackBerry’s focus remains on encrypted communications and sovereign-grade infrastructure, CRWD is one of the leading pure-play companies.
Revenues for the second quarter of fiscal 2027 stood at $1.47 billion, increasing 26% year over year. CrowdStrike’s growth is being fueled by rising AI-security demand, Falcon Flex adoption and momentum across next-gen SIEM and AIDR adoption. For fiscal 2027, CrowdStrike’s revenues are now projected between $5.991 billion and $6.011 billion, with ARR of $6.603 billion to $6.612 billion.
Aptiv PLC (APTV - Free Report) is an automotive technology peer for BlackBerry's QNX business. For the second quarter of 2026, Aptiv’s revenues came in at $3.3 billion, with adjusted revenues increasing 2% year over year. North America grew 10%, Europe declined 8% and Asia Pacific increased 6%.
However, Aptiv lowered its 2026 revenue guidance to $12.6-$12.8 billion, implying roughly 2% adjusted growth at the midpoint, while adjusted EBITDA is expected at $2.31-$2.37 billion. Revenue outlook was cut by $300 million at the midpoint, reflecting changes in customer production schedules, delayed program launches and ramps and timing of enterprise software sales and services.
BB Price Performance, Valuation & Estimates
BlackBerry’s shares have inched up 0.7% in the past month compared with the Internet-Software industry’s 10% growth.
Image Source: Zacks Investment Research
BB is trading at a forward 12-month price-to-sales multiple of 7.3, higher than the industry’s multiple of 4.43.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised upward over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
BlackBerry Raises FY27 Outlook: Can Strong Execution Continue?
Key Takeaways
BlackBerry Limited (BB - Free Report) delivered a strong second quarter of fiscal 2027, prompting an upward revision to the full-year outlook. Strong QNX momentum, expanding profitability and healthier cash generation anchored the performance, but the key question remains whether this momentum can be sustained.
BlackBerry now expects fiscal 2027 revenues of $616-$636 million, up $19 million at the midpoint from its prior forecast and implying roughly 14% year-over-year growth. Adjusted EBITDA outlook is now projected to be in the range of $141-$158 million, representing about 43% growth at the midpoint. Adjusted EPS guidance increased to 19-22 cents, while operating cash flow is now expected to reach approximately $115 million. Earlier, non-GAAP EPS was estimated at 16-20 cents, while operating cash flow was expected at approximately $100 million.
Fiscal second-quarter revenues came in at $163.3 million, up 26% and 14.2% above the Zacks Consensus Estimate. Record QNX revenues and a large licensing arrangement supported the upside. QNX revenues increased 27% year over year to $80.3 million, while the segment adjusted EBITDA rose 41% to $29 million, representing a 36% margin. Performance was broad-based across development licenses, professional services and royalties. Management highlighted the conversion of its previously reported $950 million QNX backlog as newer design wins move into production.
QNX also secured its first Alloy Kore design win with Coretura, the commercial-vehicle software joint venture between Daimler Truck and Volvo Group. The award carries estimated future royalties of more than $100 million and represents the largest design win in QNX history.
BlackBerry Limited Revenue (Quarterly)
BlackBerry Limited revenue-quarterly | BlackBerry Limited Quote
BlackBerry consequently raised its fiscal-year QNX revenue forecast to $315-$325 million and adjusted EBITDA guidance to $95-$105 million.
Licensing revenues climbed to $22.1 million from $6.6 million a year ago, driven primarily by a new licensing arrangement. At the company level, adjusted EBITDA increased 81% to $47 million.
Operating cash flow improved to $29.3 million from $3.4 million in the year-ago quarter. Free cash flow was $28.1 million, up from $2.6 million. BlackBerry ended the quarter with nearly $447 million in cash and investments.
However, Secure Communications remains an area to monitor. BlackBerry lowered the segment’s fiscal-year revenue outlook to $260-$270 million, taking a more cautious view on the timing of government opportunities amid broader geopolitical and trade uncertainty, including Canada-U.S. tensions.
Looking at Guidance and Revenue Numbers for Competitors
In the broader cybersecurity market, BlackBerry operates alongside several leading names, including CrowdStrike (CRWD - Free Report) . While BlackBerry’s focus remains on encrypted communications and sovereign-grade infrastructure, CRWD is one of the leading pure-play companies.
Revenues for the second quarter of fiscal 2027 stood at $1.47 billion, increasing 26% year over year. CrowdStrike’s growth is being fueled by rising AI-security demand, Falcon Flex adoption and momentum across next-gen SIEM and AIDR adoption. For fiscal 2027, CrowdStrike’s revenues are now projected between $5.991 billion and $6.011 billion, with ARR of $6.603 billion to $6.612 billion.
Aptiv PLC (APTV - Free Report) is an automotive technology peer for BlackBerry's QNX business. For the second quarter of 2026, Aptiv’s revenues came in at $3.3 billion, with adjusted revenues increasing 2% year over year. North America grew 10%, Europe declined 8% and Asia Pacific increased 6%.
However, Aptiv lowered its 2026 revenue guidance to $12.6-$12.8 billion, implying roughly 2% adjusted growth at the midpoint, while adjusted EBITDA is expected at $2.31-$2.37 billion. Revenue outlook was cut by $300 million at the midpoint, reflecting changes in customer production schedules, delayed program launches and ramps and timing of enterprise software sales and services.
BB Price Performance, Valuation & Estimates
BlackBerry’s shares have inched up 0.7% in the past month compared with the Internet-Software industry’s 10% growth.
Image Source: Zacks Investment Research
BB is trading at a forward 12-month price-to-sales multiple of 7.3, higher than the industry’s multiple of 4.43.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised upward 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.