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.
BB vs. CRWD: Which Cybersecurity Stock Is the Smarter Buy Now?
Read MoreHide Full Article
Key Takeaways
BB and CRWD are benefiting from cybersecurity demand, but differ in growth, valuation and risks.
BB's QNX royalty backlog surged 26% to $1.2 billion, while its forward price/sales ratio stands at 8.44X.
CRWD's Falcon Flex ARR surged 101% to $2.29 billion, but its 39.15X forward sales multiple is concern.
The cybersecurity industry continues to witness steady traction as enterprises and governments strengthen their defense against increasingly sophisticated digital threats. The rapid adoption of artificial intelligence (AI), expanding cloud infrastructure and growing security vulnerabilities are necessitating advanced cybersecurity solutions for endpoints, networks and cloud environments.
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 CrowdStrike (CRWD - Free Report) , BlackBerry (BB - Free Report) and others operating in this fast-evolving industry. BlackBerry and CrowdStrike offer investors exposure to different segments of the broader cybersecurity landscape.
Sunnyvale, CA-based CrowdStrike is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. BlackBerry’s Secure Communications division consists of BlackBerry Unified Endpoint Management, BlackBerry SecuSUITE and BlackBerry AtHoc solutions.
For investors, the choice between BB and CRWD is not straightforward. Let us break down the fundamentals, valuations, growth outlook and risks for each company to determine which stock stands out.
The Case for BB Stock
BlackBerry's improving financial performance and strengthening QNX business strengthen its investment case. In the second quarter of fiscal 2027, QNX revenues rose 27% year over year to $80.3 million, while segment adjusted EBITDA rose 41% to $29 million, for a 36% margin. Performance was broad-based across development licenses, professional services and royalties.
On Oct. 20, 2026, BB reported that QNX royalty backlog surged 26% or $250 million from fiscal 2026 end to more than $1.2 billion in just two quarters. This increase was driven by strong adoption of QNX Software Development Platform 8.0 and the first Alloy Kore design win. QNX 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.
That said, investors should not expect an immediate financial impact. BlackBerry specifically noted that the QNX design wins generally have a lead time before most royalties are recognized and that the Coretura deal will not materially alter the current fiscal-year revenue profile.
Beyond automotive, general embedded markets are an important long-term growth opportunity, expanding QNX’s reach into robotics, industrial automation and medical devices, while physical AI represents another significant growth avenue. General embedded markets already account for roughly 20% of QNX revenues.
Meanwhile, the Secure Communications business generated revenues of $61 million, up 2% year over year. Annual recurring revenues increased 4% to approximately $221 million, while dollar-based net retention was 91%. First-half Secure Communications revenues rose 13% year over year, supported by renewals and expansions across the United States, Canada, Europe, Asia and the Middle East.
Management noted that roughly 80% of the business is supported by ARR. However, the key uncertainty lies in the remaining portion of the revenue outlook tied to larger government deals. Larger government opportunities can create quarter-to-quarter variability, as these have long sales cycles.
Management said it was taking a cautious view on the timing of government opportunities amid broader geopolitical and trade uncertainty, including Canada-U.S. tensions. The company lowered its fiscal 2027 Secure Communications revenues in the range of $260-$270 million, while guiding adjusted EBITDA in the band of $50-$58 million.
BlackBerry Limited Price, Consensus and EPS Surprise
However, management added that BlackBerry has not seen “anything material arising from this issue” and has not observed a “slowdown in pipeline generation outside of North America”.
Apart from this, improving cash generation offers cushioning. Operating cash flow improved to $29.3 million from $3.4 million in the year-ago quarter. BlackBerry ended the quarter with nearly $447 million in cash and investments. A stronger balance sheet reduces financial pressure while giving BlackBerry options to support its growth initiatives.
Management said that it intends to use its financial flexibility to continue investing in QNX, repurchase shares when attractive and potentially pursue acquisitions that could accelerate expansion into the GEM space.
BlackBerry raised its fiscal 2027 revenue outlook to $616-$636 million and adjusted EBITDA guidance to $141-$158 million. Adjusted EPS is projected at 19-22 cents, while operating cash flow is expected to reach approximately $115 million.
The Case for CRWD Stock
CrowdStrike continues to witness strong demand for its Falcon cybersecurity platform, especially Falcon Flex subscription model amid accelerating enterprise AI adoption and increasing digital threats.
In the fiscal second quarter, ending ARR from accounts adopting Falcon Flex surpassed $2.29 billion, reflecting 101% year-over-year growth. The company added more than 935 Falcon Flex accounts during the quarter, exceeding the additions recorded in the preceding three quarters combined. CrowdStrike highlighted that customers converting from standard subscriptions to Flex experienced an average ending ARR uplift of more than 40%.
CRWD is seeing strong adoption across cloud, next-gen identity and next-gen SIEM categories. The combined ending ARR of CrowdStrike's cloud, next-generation SIEM and identity businesses reached approximately $2.1 billion, growing 39% year over year.
The company is also focused on innovation and strategic collaborations to strengthen its AI security capabilities. At its September 2026 Fal.Con conference, the company introduced Falcon Guardian, an AI Detection and Response (“AIDR”) solution designed to provide visibility and runtime protection for AI agents at the endpoint. Further, it unveiled SafeMind, a suite of purpose-built cybersecurity AI models developed using NVIDIA technology.
Recently, CrowdStrike expanded its collaboration with NVIDIA to integrate Falcon Guardian AIDR solution with NVIDIA OpenShell secure runtime software, while planning hardware-level security enforcement through NVIDIA Sentry.
Last month, the company expanded its collaboration with OpenAI to secure Codex agents through Falcon Guardian and integrate GPT-5.6 Cyber with the Falcon platform. Notably, the Falcon platform is now available on the OpenAI Marketplace. Eligible OpenAI enterprise customers will be able to use existing OpenAI commitments to purchase CrowdStrike’s cybersecurity solutions. Back in September, it also announced that it was bringing Falcon to Anthropic Claude Marketplace. This will allow Anthropic customers to buy CrowdStrike solutions using some of their existing Anthropic commitments.
Improving profitability and strong cash generation provide additional financial flexibility. In the fiscal second quarter, non-GAAP operating income increased 46% year over year to approximately $372 million, with the operating margin expanding 350 basis points to 25%. Free cash flow grew 33% to $377 million, representing 26% of revenues. The company's cash and cash equivalents stood at $5.01 billion at the end of the quarter.
On the last earnings call, management raised the company’s fiscal 2027 net new ARR growth outlook to approximately 34% at the midpoint, compared with its initial expectation of 22.5%. Fiscal 2027 revenues are projected to be between $5.991 billion and $6.011 billion, representing approximately 25% year-over-year growth.
CrowdStrike's long-term growth ambitions provide further support for its investment case. At the September 2026 investor briefing, management accelerated its targets to reach $10 billion in ending ARR within fiscal 2030 and $20 billion within fiscal 2035. The company identified an estimated $565 billion addressable market by calendar 2034, including approximately $215 billion in AI security opportunities.
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 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.
Price Performance and Valuation for BB & CRWD
Year to date, BB and CRWD have registered gains of 152% and 128.7%, respectively.
Image Source: Zacks Investment Research
BB is trading at a forward 12-month price/sales ratio of 8.44X, lower than CRWD's 39.15X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for BB & CRWD?
Analysts have raised BB’s earnings estimates by 10.5% for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Meanwhile, for CRWD, estimtes for the current fiscal year have remained unchnaged over the past 60 days.
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 #2 (Buy) while CrowdStrike has a Zacks Rank #3 (Hold). 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 Smarter Buy Now?
Key Takeaways
The cybersecurity industry continues to witness steady traction as enterprises and governments strengthen their defense against increasingly sophisticated digital threats. The rapid adoption of artificial intelligence (AI), expanding cloud infrastructure and growing security vulnerabilities are necessitating advanced cybersecurity solutions for endpoints, networks and cloud environments.
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 CrowdStrike (CRWD - Free Report) , BlackBerry (BB - Free Report) and others operating in this fast-evolving industry. BlackBerry and CrowdStrike offer investors exposure to different segments of the broader cybersecurity landscape.
Sunnyvale, CA-based CrowdStrike is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. BlackBerry’s Secure Communications division consists of BlackBerry Unified Endpoint Management, BlackBerry SecuSUITE and BlackBerry AtHoc solutions.
For investors, the choice between BB and CRWD is not straightforward. Let us break down the fundamentals, valuations, growth outlook and risks for each company to determine which stock stands out.
The Case for BB Stock
BlackBerry's improving financial performance and strengthening QNX business strengthen its investment case. In the second quarter of fiscal 2027, QNX revenues rose 27% year over year to $80.3 million, while segment adjusted EBITDA rose 41% to $29 million, for a 36% margin. Performance was broad-based across development licenses, professional services and royalties.
On Oct. 20, 2026, BB reported that QNX royalty backlog surged 26% or $250 million from fiscal 2026 end to more than $1.2 billion in just two quarters. This increase was driven by strong adoption of QNX Software Development Platform 8.0 and the first Alloy Kore design win. QNX 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.
That said, investors should not expect an immediate financial impact. BlackBerry specifically noted that the QNX design wins generally have a lead time before most royalties are recognized and that the Coretura deal will not materially alter the current fiscal-year revenue profile.
Beyond automotive, general embedded markets are an important long-term growth opportunity, expanding QNX’s reach into robotics, industrial automation and medical devices, while physical AI represents another significant growth avenue. General embedded markets already account for roughly 20% of QNX revenues.
Meanwhile, the Secure Communications business generated revenues of $61 million, up 2% year over year. Annual recurring revenues increased 4% to approximately $221 million, while dollar-based net retention was 91%. First-half Secure Communications revenues rose 13% year over year, supported by renewals and expansions across the United States, Canada, Europe, Asia and the Middle East.
BlackBerry Limited Revenue (Quarterly)
BlackBerry Limited revenue-quarterly | BlackBerry Limited Quote
Management noted that roughly 80% of the business is supported by ARR. However, the key uncertainty lies in the remaining portion of the revenue outlook tied to larger government deals. Larger government opportunities can create quarter-to-quarter variability, as these have long sales cycles.
Management said it was taking a cautious view on the timing of government opportunities amid broader geopolitical and trade uncertainty, including Canada-U.S. tensions. The company lowered its fiscal 2027 Secure Communications revenues in the range of $260-$270 million, while guiding adjusted EBITDA in the band of $50-$58 million.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote
However, management added that BlackBerry has not seen “anything material arising from this issue” and has not observed a “slowdown in pipeline generation outside of North America”.
Apart from this, improving cash generation offers cushioning. Operating cash flow improved to $29.3 million from $3.4 million in the year-ago quarter. BlackBerry ended the quarter with nearly $447 million in cash and investments. A stronger balance sheet reduces financial pressure while giving BlackBerry options to support its growth initiatives.
Management said that it intends to use its financial flexibility to continue investing in QNX, repurchase shares when attractive and potentially pursue acquisitions that could accelerate expansion into the GEM space.
BlackBerry raised its fiscal 2027 revenue outlook to $616-$636 million and adjusted EBITDA guidance to $141-$158 million. Adjusted EPS is projected at 19-22 cents, while operating cash flow is expected to reach approximately $115 million.
The Case for CRWD Stock
CrowdStrike continues to witness strong demand for its Falcon cybersecurity platform, especially Falcon Flex subscription model amid accelerating enterprise AI adoption and increasing digital threats.
In the fiscal second quarter, ending ARR from accounts adopting Falcon Flex surpassed $2.29 billion, reflecting 101% year-over-year growth. The company added more than 935 Falcon Flex accounts during the quarter, exceeding the additions recorded in the preceding three quarters combined. CrowdStrike highlighted that customers converting from standard subscriptions to Flex experienced an average ending ARR uplift of more than 40%.
CRWD is seeing strong adoption across cloud, next-gen identity and next-gen SIEM categories. The combined ending ARR of CrowdStrike's cloud, next-generation SIEM and identity businesses reached approximately $2.1 billion, growing 39% year over year.
The company is also focused on innovation and strategic collaborations to strengthen its AI security capabilities. At its September 2026 Fal.Con conference, the company introduced Falcon Guardian, an AI Detection and Response (“AIDR”) solution designed to provide visibility and runtime protection for AI agents at the endpoint. Further, it unveiled SafeMind, a suite of purpose-built cybersecurity AI models developed using NVIDIA technology.
Recently, CrowdStrike expanded its collaboration with NVIDIA to integrate Falcon Guardian AIDR solution with NVIDIA OpenShell secure runtime software, while planning hardware-level security enforcement through NVIDIA Sentry.
CrowdStrike Price, Consensus and EPS Surprise
CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote
Last month, the company expanded its collaboration with OpenAI to secure Codex agents through Falcon Guardian and integrate GPT-5.6 Cyber with the Falcon platform. Notably, the Falcon platform is now available on the OpenAI Marketplace. Eligible OpenAI enterprise customers will be able to use existing OpenAI commitments to purchase CrowdStrike’s cybersecurity solutions. Back in September, it also announced that it was bringing Falcon to Anthropic Claude Marketplace. This will allow Anthropic customers to buy CrowdStrike solutions using some of their existing Anthropic commitments.
Improving profitability and strong cash generation provide additional financial flexibility. In the fiscal second quarter, non-GAAP operating income increased 46% year over year to approximately $372 million, with the operating margin expanding 350 basis points to 25%. Free cash flow grew 33% to $377 million, representing 26% of revenues. The company's cash and cash equivalents stood at $5.01 billion at the end of the quarter.
On the last earnings call, management raised the company’s fiscal 2027 net new ARR growth outlook to approximately 34% at the midpoint, compared with its initial expectation of 22.5%. Fiscal 2027 revenues are projected to be between $5.991 billion and $6.011 billion, representing approximately 25% year-over-year growth.
CrowdStrike Revenue (Quarterly)
CrowdStrike revenue-quarterly | CrowdStrike Quote
CrowdStrike's long-term growth ambitions provide further support for its investment case. At the September 2026 investor briefing, management accelerated its targets to reach $10 billion in ending ARR within fiscal 2030 and $20 billion within fiscal 2035. The company identified an estimated $565 billion addressable market by calendar 2034, including approximately $215 billion in AI security opportunities.
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 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.
Price Performance and Valuation for BB & CRWD
Year to date, BB and CRWD have registered gains of 152% and 128.7%, respectively.
Image Source: Zacks Investment Research
BB is trading at a forward 12-month price/sales ratio of 8.44X, lower than CRWD's 39.15X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for BB & CRWD?
Analysts have raised BB’s earnings estimates by 10.5% for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Meanwhile, for CRWD, estimtes for the current fiscal year have remained unchnaged over the past 60 days.
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 #2 (Buy) while CrowdStrike has a Zacks Rank #3 (Hold). 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.