BlackBerry (NYSE:BB) Posts Earnings Results, Beats Expectations By $0.03 EPS

BlackBerry (NYSE:BB) issued its earnings results on Thursday. The company reported $0.07 EPS for the quarter, beating analysts’ consensus estimates 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 business had revenue of $166.56 million for the quarter, compared to the consensus estimate of $144.22 million. During the same quarter last year, the firm posted $0.04 EPS. The business’s revenue for the quarter was up 26.0% compared to the same quarter last year. 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

BlackBerry stock opened at $8.71 on Friday. The company has a debt-to-equity ratio of 0.26, a quick ratio of 2.20 and a current ratio of 2.20. The business has a fifty day moving average of $8.31 and a two-hundred day moving average of $7.37. BlackBerry has a one year low of $3.12 and a one year high of $13.59. The company has a market cap of $5.11 billion, a P/E ratio of 96.73 and a beta of 2.23.

Wall Street Analysts Forecast Growth

BB has been the topic of several research reports. TD boosted their price objective on shares of BlackBerry from $5.00 to $8.00 and gave the stock a “hold” rating in a report on Friday, June 26th. 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. Canadian Imperial Bank of Commerce boosted their price target on shares of BlackBerry from $10.00 to $13.00 and gave the stock an “outperformer” rating in a research report on Friday, June 26th. Wall Street Zen raised BlackBerry from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. Finally, Weiss Ratings cut shares of BlackBerry from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, August 28th. Two equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $8.92.

Key Stories Impacting BlackBerry

Here are the key news stories impacting BlackBerry this week:

• Positive Sentiment: BlackBerry posted adjusted earnings of $0.07 per share on approximately $163 million in revenue, exceeding consensus estimates of $0.04 per share and roughly $142.5 million in revenue. Revenue increased 26% year over year, while adjusted EBITDA rose 81%. BlackBerry Posts Strong Earnings, Driven by Car Software. The Stock Jumps.
• Positive Sentiment: The QNX automotive software division delivered record quarterly revenue, supported by automotive strength and new design wins. Its first Alloy Kore design win, with Coretura, was described as the largest design win in QNX history, strengthening BlackBerry’s position in software-defined commercial vehicles. BlackBerry lifts annual revenue forecast on strength in automotive software business
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $616 million–$636 million, above the $614.1 million consensus estimate, and increased its adjusted EPS outlook to $0.19–$0.22. BlackBerry 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: Unusual options activity showed traders purchasing 114,134 call options, 63% above average call volume. This may reflect increased bullish speculation, but it does not guarantee sustained buying in the shares.
• Negative Sentiment: Third-quarter EPS guidance of $0.04–$0.05 has a midpoint below the $0.05 consensus estimate, while revenue guidance of $143 million–$154 million is broadly in line with expectations. The stock’s consensus analyst target is $8.92, suggesting limited upside from recent levels, while its valuation remains elevated at roughly 97 times earnings. BlackBerry Stock Has Consensus Target Price of $8.92 According to Analysts

Insider Buying and Selling

In related news, insider Philip Kurtz sold 6,414 shares of BlackBerry stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $11.07, for a total value of $71,002.98. Following the completion of the transaction, the insider directly owned 125,158 shares in the company, valued at approximately $1,385,499.06. This trade represents a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO John Giamatteo sold 152,012 shares of the firm’s stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $11.35, for a total value of $1,725,336.20. Following the transaction, the chief executive officer directly owned 687,246 shares of the company’s stock, valued at $7,800,242.10. This represents a 18.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 355,858 shares of company stock valued at $4,012,270. Corporate insiders own 0.51% of the company’s stock.

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.