BlackBerry (NYSE:BB) Posts Quarterly Earnings Results

BlackBerry (NYSE:BB) announced its quarterly earnings results on Thursday. The company reported $0.07 EPS for the quarter, beating the consensus estimate of $0.04 by $0.03, Briefing.com reports. BlackBerry had a net margin of 10.31% and a return on equity of 11.66%. The firm’s revenue for the quarter was up 26.0% compared to the same quarter last year. During the same period last year, the company earned $0.04 EPS. BlackBerry updated its FY 2027 guidance to 0.190-0.220 EPS and its Q3 2027 guidance to 0.040-0.050 EPS.

Here are the key takeaways from BlackBerry’s conference call:

• BlackBerry raised its full-year outlook after a strong second quarter, with revenue guidance lifted to $616 million–$636 million and adjusted EBITDA guidance to $141 million–$158 million. Q2 revenue increased 26% year over year to $163 million, while adjusted EBITDA rose 81% to $47 million.
• QNX delivered record revenue of $80 million, up 27% year over year, supported by stronger royalties, development licenses, and design wins. The company said its backlog is beginning to convert as more programs enter production, including newer contracts with minimum volume commitments that could improve revenue and cash-flow visibility.
• QNX secured its first Alloy Kore design win with Coretura, a Volvo Group–Daimler Truck joint venture; the award is expected to generate more than $100 million in future royalties and has an estimated per-instance value roughly three times that of the customer’s current QNX deployment. BlackBerry also announced QNX wins with Uber, Momenta, and XHEART, strengthening its position in autonomous vehicles and other Physical AI applications.
• Secure communications revenue was broadly stable at $61 million, but BlackBerry lowered its full-year revenue outlook to $260 million–$270 million and adjusted EBITDA outlook to $50 million–$58 million. Management cited geopolitical uncertainty, trade tensions, and less predictable timing for larger government contracts, although it said the recurring-revenue base remains stable.
• Cash generation strengthened materially, with $29 million of operating cash flow in Q2 and approximately $447 million of cash and investments at quarter-end. Management said the balance sheet supports continued QNX investment, potential share repurchases, and selective acquisitions aimed at accelerating growth in general embedded markets and Physical AI.

BlackBerry Price Performance

NYSE:BB traded down $0.12 during mid-day trading on Thursday, reaching $8.26. 7,314,769 shares of the stock were exchanged, compared to its average volume of 18,185,863. The company has a current ratio of 2.20, a quick ratio of 2.20 and a debt-to-equity ratio of 0.26. The business has a fifty day moving average price of $8.32 and a 200 day moving average price of $7.33. BlackBerry has a 1-year low of $3.12 and a 1-year high of $13.59. The firm has a market capitalization of $4.85 billion, a PE ratio of 92.30 and a beta of 2.23.

Insider Buying and Selling at BlackBerry

In other news, CFO Tim Foote sold 8,235 shares of the firm’s stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $10.92, for a total transaction of $89,926.20. Following the completion of the transaction, the chief financial officer owned 73,535 shares in the company, valued at approximately $803,002.20. This trade represents a 10.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Philip Kurtz sold 6,414 shares of the firm’s stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $11.07, for a total transaction of $71,002.98. Following the transaction, the insider owned 125,158 shares of the company’s stock, valued at approximately $1,385,499.06. This trade represents a 4.87% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 355,858 shares of company stock valued at $4,012,270 over the last 90 days. Insiders own 0.51% of the company’s stock.

BlackBerry News Roundup

Here are the key news stories impacting BlackBerry this week:

• Positive Sentiment: Quarterly results exceeded expectations. BlackBerry reported adjusted earnings of $0.07 per share on $163.3 million in revenue, surpassing consensus estimates of $0.04 per share and approximately $142.5 million-$148.8 million in revenue. Revenue increased about 26% year over year, while adjusted EBITDA rose 81%. BlackBerry Stock Rises on Q2 Beat-and-Raise
• Positive Sentiment: QNX delivered record quarterly revenue. Growth in automotive software and new design wins helped drive the performance. BlackBerry also secured its first Alloy Kore design win with Coretura, a commercial-vehicle software venture backed by Daimler Truck and Volvo Group. Management described it as the largest design win in QNX history. BlackBerry lifts annual revenue forecast on strength in automotive software business
• Positive Sentiment: Full-year fiscal 2027 guidance was raised. BlackBerry now expects revenue of $616 million-$636 million, above the $614.1 million consensus estimate, and adjusted EPS of $0.19-$0.22, above the $0.18 consensus. The company also generated $29 million in operating cash flow and reported its sixth consecutive quarter of positive GAAP net income. BlackBerry Reports Second Quarter Fiscal Year 2027 Results
• Neutral Sentiment: Third-quarter guidance was mixed. Revenue guidance of $143 million-$154 million broadly brackets the $148.8 million consensus, but the $0.04-$0.05 EPS outlook is slightly below the $0.05 estimate.
• Negative Sentiment: Valuation leaves limited room for execution setbacks. BlackBerry trades at a high earnings multiple after a substantial rally, so delays in Alloy Kore deployments, weaker commercial-vehicle production or slower margin expansion could pressure the shares. Should You Trim Or Add To Your BlackBerry Position Now?

Analyst Ratings Changes

A number of brokerages have issued reports on BB. Weiss Ratings lowered BlackBerry from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, August 28th. Wall Street Zen raised BlackBerry from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. TD Securities restated a “hold” rating and set a $8.00 price objective on shares of BlackBerry in a research note on Friday, June 26th. Raymond James Financial upped their price objective on shares of BlackBerry from $4.75 to $9.50 and gave the stock a “market perform” rating in a report on Friday, June 26th. Finally, Canadian Imperial Bank of Commerce increased their target price on shares of BlackBerry from $10.00 to $13.00 and gave the company an “outperformer” rating in a research report on Friday, June 26th. Two equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $8.92.

About BlackBerry

BlackBerry Limited is a Canadian software company headquartered in Waterloo, Ontario, that provides cybersecurity and Internet of Things (IoT) solutions to enterprises, governments and other organizations worldwide. Its cybersecurity offerings include endpoint protection, endpoint management, identity and access controls, secure communications, and tools designed to help organizations monitor and respond to cyber threats.

The company’s IoT business is built around QNX, a software platform used in automotive systems and other embedded applications.