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

BlackBerry (NYSE:BB) announced its earnings results on Thursday. The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.03, Briefing.com reports. BlackBerry had a net margin of 13.09% and a return on equity of 13.91%. The firm had revenue of $166.56 million for the quarter, compared to analysts’ expectations of $144.22 million. During the same period in the prior year, the company earned $0.04 EPS. The business’s revenue 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 $8.19 on Friday. BlackBerry has a 12-month low of $3.12 and a 12-month high of $13.59. 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 firm has a 50-day moving average price of $8.29 and a 200-day moving average price of $7.38. The firm has a market capitalization of $4.80 billion, a PE ratio of 68.21 and a beta of 2.23.

Key Headlines Impacting BlackBerry

Here are the key news stories impacting BlackBerry this week:

• Positive Sentiment: Q2 results beat expectations: BlackBerry reported adjusted earnings of $0.07 per share versus a $0.04 consensus estimate. Revenue rose 26% year over year to approximately $163 million-$167 million, well above analyst forecasts. BB Q2 Earnings Top, Sales Up Y/Y on QNX Strength, FY27 Outlook Raised
• Positive Sentiment: QNX remains the key growth driver: The automotive software division posted record quarterly revenue, supported by core automotive demand and new design wins. BlackBerry also announced its first Alloy Kore win, described as the largest design win in QNX history. BlackBerry lifts annual revenue forecast on strength in automotive software business
• Positive Sentiment: Full-year outlook increased: BlackBerry raised fiscal 2027 revenue guidance to $616 million-$636 million, above the $614.1 million consensus, and lifted its EPS range to $0.19-$0.22. Adjusted EBITDA, operating cash flow and GAAP profitability also strengthened. BlackBerry Reports Second Quarter Fiscal Year 2027 Results
• Neutral Sentiment: Investor positioning was unusually bullish: Trading activity included 114,134 BB call options, 63% above average, indicating elevated speculative interest around the earnings announcement.
• Neutral Sentiment: Analyst valuation is mixed: The reported consensus price target is $8.92, only modestly above the recent trading range, suggesting limited near-term upside based on current estimates.
• Negative Sentiment: Profit-taking is offsetting the earnings strength: After an initial post-earnings rally, BB has decreased as traders lock in gains. The reaction suggests expectations for QNX and the raised outlook may already be reflected in the stock, while the next-quarter EPS guidance midpoint is slightly below consensus. BlackBerry Drops 7% as Post-Earnings Rally Unwinds Despite Record QNX Quarter

Insider Activity

In related news, CEO John Giamatteo sold 152,012 shares of the 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 sale, 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. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Jennifer Armstrong-Owen sold 3,296 shares of the stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $10.92, for a total transaction of $35,992.32. Following the completion of the sale, the senior vice president directly owned 106,091 shares in the company, valued at $1,158,513.72. This trade represents a 3.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 355,858 shares of company stock valued at $4,012,270. 0.51% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several research analysts recently commented on BB shares. Stifel Nicolaus began coverage on BlackBerry in a research report on Wednesday, June 24th. They issued a “buy” rating and a $12.00 price target for the company. Raymond James Financial upped their price objective on BlackBerry from $4.75 to $9.50 and gave the company a “market perform” rating in a research report on Friday, June 26th. TD Securities reaffirmed a “hold” rating and issued a $8.00 price objective on shares of BlackBerry in a research note on Friday, June 26th. Wall Street Zen upgraded BlackBerry from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. Finally, Canaccord Genuity Group cut their target price on BlackBerry from $10.30 to $9.50 and set a “hold” rating on the stock in a research report on Friday. Two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $9.25.

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.