BlackBerry (BB) Stock Jumps 19% After Earnings Beat and Forecast Raise

TLDR

• BlackBerry stock jumped ~19% after Q1 FY27 earnings beat guidance on revenue, profit, and cash flow
• Total Q1 revenue hit $152.9M, up 26% year-over-year, with QNX revenue rising 26% to $72.3M
• Full-year FY27 revenue guidance raised to $594M–$621M, up from $584M–$611M
• QNX backlog sits at nearly $1 billion in future royalties; development license revenue hit its highest level in eight quarters
• Secure Communications revenue rose 24% to $73.6M, driven largely by government demand

BlackBerry (BB) stock surged around 19% on Thursday after the company posted first-quarter fiscal 2027 results that beat its own guidance and raised its full-year revenue outlook.

BlackBerry Limited, BB

The Toronto-listed stock climbed to around $9.72 in early trading, nearing its 52-week high of $10.93. U.S.-listed shares moved roughly in line, also up about 20%.

Total Q1 revenue came in at $152.9 million, up 26% from the same period a year ago, and above the high end of the company’s guidance range.

Adjusted EBITDA more than doubled year-over-year to $36 million, representing a 24% margin. The company also reported its fifth straight quarter of GAAP net income.

Operating cash flow hit $5 million for the quarter — the first positive fiscal Q1 in nine years, excluding a one-time patent sale.

QNX Drives the Growth Story

QNX revenue grew 26% to $72.3 million, with an 86% gross margin — up five percentage points from a year earlier. Adjusted EBITDA for the segment reached $19 million, a 52% jump year-over-year.

The division’s backlog now sits at nearly $1 billion in future royalties. Development license revenue, an early signal of future royalty streams, hit its highest point in eight quarters.

NVIDIA has standardized its safety stack on QNX, deepening that partnership. QNX is also expanding into robotics, medical devices, and industrial automation — areas management called the fastest-growing segment within the division.

BlackBerry’s Alloy Kore middleware platform is being positioned to move the company from OS provider to full platform provider, with management saying it could expand average selling prices “by multiples.”

Secure Communications Holds Steady

The Secure Communications segment posted revenue of $73.6 million, up 24% year-over-year, also beating guidance.

Around 80% of that business is recurring revenue, with the remaining 20% coming from larger government contracts that can vary quarter to quarter.

Annual recurring revenue for the segment was $220 million, up 5% year-over-year. The dollar-based net retention rate came in at 92%.

CFO Tim Foote noted that the majority of the Secure Communications pipeline is government-driven.

For the full fiscal year 2027, BlackBerry raised guidance to $594M–$621M in total revenue, with adjusted EBITDA of $119M–$141M. QNX full-year guidance was lifted to $295M–$312M.

The company ended Q1 with approximately $423 million in cash and investments, and net cash of roughly $223 million after debt. Since May 2025, BlackBerry has bought back around $70 million in stock at an average price of $3.85 per share.

For Q2 FY27, BlackBerry guided to revenue of $137M–$148M and adjusted EBITDA of $20M–$30M.

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