BlackBerry (BB) Stock News

TD Cowen says BlackBerry's QNX core business beat expectations in F2Q and sees catalysts including TAM expansion, Alloy Kore design wins, robotaxi/AI adoption, and capital deployment.

BlackBerry raised its fiscal 2027 revenue and earnings outlook after its QNX embedded software unit posted 27% revenue growth, driving a Q2 earnings beat. Total revenue rose 26% to $163.3 million, topping Wall Street forecasts. CEO John Giamatteo said the company is well positioned despite macro choppiness.

BlackBerry CEO John Giamatteo described the trim to Secure Communications full-year revenue and adjusted Ebitda guidance as precautionary, citing broader geopolitical uncertainty and U.S.-Canada trade tensions. The segment depends on government contracts. Giamatteo said the company has not seen a material impact or lost deals. Separately, BlackBerry's QNX embedded software division posted record results, with revenue up 27% to $80.3 million and a $100 million-plus design win, driving a full-year guidance raise.

The CEO said a Coretura design win validates BlackBerry's shift to QNX software. No details on customer or revenue impact were disclosed.

BlackBerry chief executive John Giamatteo said the market for automotive software is expanding. No financial details or specific contract wins were disclosed.

BlackBerry Q2 beat revenue and EBITDA estimates, and the company raised its overall FY27 guidance on strength in QNX. However, CFO Tim Foote cited U.S.-Canada trade tensions as "already dynamic" and complicating the Secure Communications segment's substantial U.S. government footprint. The company revised Secure Communications fiscal-year revenue outlook to $260-270 million (from $270-280 million) and adjusted EBITDA to $50-58 million (from $57-65 million). "We consider it appropriate to be cautious as we head into the second half," Foote said.

BlackBerry Beats Q2 Estimates on Record QNX Automotive Software Revenue.