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BlackBerry Jumps 13.3% in a Week as QNX and Earnings Momentum Build
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Key Takeaways
BB rose 13.3% in a week, supported by stronger earnings, record QNX revenues and raised guidance.
QNX revenues jumped 27.3% to a record $80.3 million, while adjusted EBITDA rose 41.5% to $29 million.
BB trades at 8.0X EV/Sales versus its 3.8X five-year median, raising the bar for growth and execution.
BlackBerry Limited (BB - Free Report) shares gained 13.3% over one week, renewing attention on whether improving operating trends can sustain the move. Record QNX performance, stronger profitability and higher fiscal 2027 guidance provide fundamental support.
The counterweight is valuation. With the stock trading well above its five-year EV/Sales median, continued upside may depend on QNX growth, cash generation and consistent execution across the company’s businesses.
Second-quarter fiscal 2027 revenues rose 26% year over year to $163.3 million. Adjusted EBITDA climbed 81% to $47 million, representing 29% of revenues, as higher-margin QNX royalties and licensing supported operating leverage.
Image Source: Zacks Investment Research
Operating cash flow improved to $29.3 million from $3.4 million a year earlier.
BB’s QNX Business Delivers Record Growth
QNX revenues increased 27.3% year over year to a quarterly record of $80.3 million. Adjusted EBITDA advanced 41.5% to $29 million, while adjusted gross margin expanded four percentage points to 87%.
Development-license activity remained healthy, and previously awarded programs are moving into production. The first Alloy Kore design win added more than $100 million to QNX royalty backlog. NVIDIA Corporation (NVDA - Free Report) , with its Hyperion platform for robotaxi and Level 4 vehicle development, highlights the broader physical-AI ecosystem QNX is targeting.
BlackBerry Raises Its Fiscal 2027 Outlook
Management raised fiscal 2027 revenue guidance to $616-$636 million and adjusted EBITDA guidance to $141-$158 million. The company also lifted its operating cash flow outlook to approximately $115 million.
QNX revenue guidance increased to $315-$325 million, with adjusted EBITDA projected at $95-$105 million. Management cited automotive momentum and royalty-backlog conversion as key drivers for the segment.
BB Still Faces Retention and Contract-Timing Risks
Secure Communications revenues were $60.9 million, up 1.7% year over year but down from $73.6 million in the prior quarter. Dollar-based net retention slipped to 91% from 92% sequentially, while adjusted EBITDA declined 17.5% year over year to $8 million.
Larger government opportunities can create quarterly variability because of long sales cycles, and automotive program timing can delay QNX royalties. Microsoft Corporation (MSFT - Free Report) , whose Entra ID platform centers on identity and access management, is relevant to the same security ecosystem in which BlackBerry is extending AtHoc integrations.
BlackBerry’s Valuation Raises the Bar
BlackBerry trades at 8.0X trailing 12-month EV/Sales, compared with a five-year median of 3.8X. That premium suggests the market is already assigning substantial value to the company’s improving growth and profitability profile.
The valuation does not eliminate upside, but it raises the execution threshold. QNX royalty conversion, cash flow and steadier Secure Communications performance may need to remain favorable for the stock to support a higher multiple.
BB’s Growth and Momentum Scores Support the Setup
The stock currently carries a Zacks Rank #3 (Hold), which argues against treating the recent rally as a clear near-term buy signal. The rank is consistent with a more balanced stance after the sharp weekly advance.
BlackBerry has a Growth Score of A, Momentum Score of A and VGM Score of B, while its Value Score of F points to valuation risk. The combination supports the growth and momentum case, but the Hold rank and weak value profile favor selectivity rather than chasing the move. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
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BlackBerry Jumps 13.3% in a Week as QNX and Earnings Momentum Build
Key Takeaways
BlackBerry Limited (BB - Free Report) shares gained 13.3% over one week, renewing attention on whether improving operating trends can sustain the move. Record QNX performance, stronger profitability and higher fiscal 2027 guidance provide fundamental support.
The counterweight is valuation. With the stock trading well above its five-year EV/Sales median, continued upside may depend on QNX growth, cash generation and consistent execution across the company’s businesses.
BlackBerry’s Weekly Rally Meets Stronger Fundamentals
Second-quarter fiscal 2027 revenues rose 26% year over year to $163.3 million. Adjusted EBITDA climbed 81% to $47 million, representing 29% of revenues, as higher-margin QNX royalties and licensing supported operating leverage.
Image Source: Zacks Investment Research
Operating cash flow improved to $29.3 million from $3.4 million a year earlier.
BB’s QNX Business Delivers Record Growth
QNX revenues increased 27.3% year over year to a quarterly record of $80.3 million. Adjusted EBITDA advanced 41.5% to $29 million, while adjusted gross margin expanded four percentage points to 87%.
Development-license activity remained healthy, and previously awarded programs are moving into production. The first Alloy Kore design win added more than $100 million to QNX royalty backlog. NVIDIA Corporation (NVDA - Free Report) , with its Hyperion platform for robotaxi and Level 4 vehicle development, highlights the broader physical-AI ecosystem QNX is targeting.
BlackBerry Raises Its Fiscal 2027 Outlook
Management raised fiscal 2027 revenue guidance to $616-$636 million and adjusted EBITDA guidance to $141-$158 million. The company also lifted its operating cash flow outlook to approximately $115 million.
QNX revenue guidance increased to $315-$325 million, with adjusted EBITDA projected at $95-$105 million. Management cited automotive momentum and royalty-backlog conversion as key drivers for the segment.
BB Still Faces Retention and Contract-Timing Risks
Secure Communications revenues were $60.9 million, up 1.7% year over year but down from $73.6 million in the prior quarter. Dollar-based net retention slipped to 91% from 92% sequentially, while adjusted EBITDA declined 17.5% year over year to $8 million.
Larger government opportunities can create quarterly variability because of long sales cycles, and automotive program timing can delay QNX royalties. Microsoft Corporation (MSFT - Free Report) , whose Entra ID platform centers on identity and access management, is relevant to the same security ecosystem in which BlackBerry is extending AtHoc integrations.
BlackBerry’s Valuation Raises the Bar
BlackBerry trades at 8.0X trailing 12-month EV/Sales, compared with a five-year median of 3.8X. That premium suggests the market is already assigning substantial value to the company’s improving growth and profitability profile.
The valuation does not eliminate upside, but it raises the execution threshold. QNX royalty conversion, cash flow and steadier Secure Communications performance may need to remain favorable for the stock to support a higher multiple.
BB’s Growth and Momentum Scores Support the Setup
The stock currently carries a Zacks Rank #3 (Hold), which argues against treating the recent rally as a clear near-term buy signal. The rank is consistent with a more balanced stance after the sharp weekly advance.
BlackBerry has a Growth Score of A, Momentum Score of A and VGM Score of B, while its Value Score of F points to valuation risk. The combination supports the growth and momentum case, but the Hold rank and weak value profile favor selectivity rather than chasing the move. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.