BlackBerry stock jumps 22% after Q1 beat

BlackBerry reported fiscal first-quarter results Thursday and its shares climbed more than 20% on the New York Stock Exchange after the numbers beat expectations. Revenue for the quarter was $152.9 million, up 26% year over year. Adjusted earnings per share were $0.04, above the $0.03 estimate. Operating cash flow was $4.6 million; the company described that as its first cash-positive fiscal quarter in nine years when excluding a non-core patent sale in 2024.

Performance was driven by the company’s core software segments. QNX, the embedded operating system for vehicles, generated $72.3 million in revenue, a 26% increase from the prior year. Secure Communications revenue rose 24% to $73.6 million. Licensing revenue added about $10 million for the quarter. The company attributed the gains to stronger demand for vehicle software and encrypted communications and reported higher customer engagement and an expanding backlog. ‘Demand across our markets remains healthy, customer engagement is strong, and our backlog continues to expand,’ the company said on its earnings call.

BlackBerry raised its fiscal 2027 revenue outlook to a range of $594 million to $621 million, up from a prior forecast of $584 million to $611 million. The firm also increased QNX revenue guidance to $295 million to $312 million from $290 million to $307 million. Guidance for Secure Communications was unchanged, and licensing revenue is expected to be slightly higher. Adjusted earnings for fiscal 2027 are projected at $0.16 to $0.20 per share; consensus expectations are $0.18 per share. For the current quarter, the company expects revenue of $137 million to $148 million, adjusted EBITDA of $20 million to $30 million, and adjusted earnings of $0.03 to $0.04 per share.

Executives highlighted opportunities in artificial intelligence and automation, describing the challenges of ‘physical AI’—intelligent machines operating around people that require safety, security, reliability and real-time determinism. The company noted that modern vehicles act as complex autonomous systems and said QNX supports many advanced autonomous and safety-critical functions. Chief Executive John Giamatteo pointed to multi-year growth potential in software-defined vehicles and broader embedded systems, noting, ‘We believe these opportunities significantly enhance QNX’s long-term potential.’

The results reflect BlackBerry’s continued shift from a handset maker to a software and services company focused on embedded systems, secure communications and licensing. Investors reacted to the quarterly beat, the return to positive operating cash flow excluding the patent sale, and the higher 2027 revenue outlook with a stock-price gain of more than 20% on the trading session.