BlackBerry stock surges as first-quarter results top estimates on QNX, cybersecurity strength
BlackBerry stock surges as first-quarter results top estimates on QNX, cybersecurity strength
Publish Date: 2026-06-25 11:57:00
Source Domain: www.proactiveinvestors.com
Using an unordered list, summarize the following article with between 4 and 8 key points.
Blackberry (TSX:BB) shares jumped nearly 21% on Thursday in New York and Toronto after the Canadian technology company posted first-quarter fiscal 2027 results that beat analyst expectations, driven by double-digit growth across its QNX automotive software and Secure Communications divisions.
Revenue for the quarter came in at $152.9 million, up 26% year over year and well above the analyst consensus of $138.2 million.
Adjusted earnings per share of $0.04 topped estimates of $0.03, while adjusted EBITDA surged 144% to $36.3 million.
The company also reported operating cash flow of $4.6 million for the quarter, marking its first positive fiscal first quarter in nine years, excluding a patent sale in fiscal 2024.
Both QNX and Secure Communications achieved Rule of 40, a benchmark that combines revenue growth and profitability margin and is widely used to evaluate software company performance.
QNX, Blackberry (TSX:BB)’s embedded operating system business serving the automotive and industrial sectors, posted revenue of $72.3 million, up 26% year over year, with adjusted EBITDA rising 52% to $19.3 million.
Secure Communications, which serves government and enterprise customers, generated revenue of $73.6 million, a 24% increase year over year. Adjusted EBITDA for the segment more than doubled, rising 110% to $20.2 million. Annual recurring revenue for the division stood at $220 million, with a dollar-based net revenue retention rate of 92%.
Licensing revenue was $7 million. The company held cash and investments of $422.9 million at quarter end.
For the second quarter, BlackBerry guided for revenue of $137 million to $148 million, adjusted EBITDA of $20 million to $30 million, adjusted EPS of $0.03 to $0.04, and operating cash flow ranging from breakeven to $10 million.
Full-year guidance calls for revenue of $594 million to $621 million, adjusted EBITDA of $119 million to $139 million, adjusted EPS of $0.16 to $0.20, and operating cash flow of approximately $100 million.
