BlackBerry (BB) Stock Jumps 10% After Earnings Beat and Turnaround Declaration

TLDR

• BlackBerry posted Q4 revenue of $156M, beating estimates of $144.4M
• Adjusted EPS came in at 6 cents, above the 5-cent analyst forecast
• QNX revenue rose 20% to $78.7M with a $950M royalty backlog
• CEO declared the turnaround “complete,” calling BlackBerry a “growth company”
• Q1 revenue guidance of $132M–$140M tops analyst estimates of $129.9M

BlackBerry beat Wall Street’s Q4 estimates on both the top and bottom lines, sending its stock up more than 10% in premarket trading on Thursday.

The Canadian software company posted revenue of $156 million for the quarter, up 10% year over year and well ahead of the $144.4 million analysts had expected. Adjusted earnings came in at 6 cents per share, up from 3 cents a year ago and above the 5-cent consensus forecast.

BlackBerry Limited, BB

QNX Drives the Numbers

The standout was the QNX division. Revenue there rose 20% year over year to $78.7 million. The royalty backlog climbed to approximately $950 million. QNX’s real-time operating system is now embedded in more than 275 million vehicles.

Giamatteo pointed to QNX’s deep roots in safety-critical systems as a competitive moat. “Our business is much more immune to ‘SaaSmageddon’ because these are highly regulated, complex, mission-critical solutions,” he told Reuters.

CFO Tim Foote said investment in QNX will increase in the coming fiscal year, with a focus on sales, marketing, and expansion into adjacent markets including physical AI, robotics, and medical applications.

BlackBerry’s secure communications unit also contributed. That business, which draws about 75% of its revenue from government customers, posted an 8% revenue increase to $72.5 million in the quarter.

Guidance Tops Estimates

For Q1, BlackBerry guided revenue of $132 million to $140 million. The midpoint of that range sits above the $129.9 million analysts had penciled in.

Looking further out, the company expects fiscal 2027 adjusted EPS of 15 to 19 cents on revenue of $584 million to $611 million. That compares to an adjusted profit of 16 cents per share on $549.1 million in revenue in fiscal 2026.

Giamatteo also flagged a more aggressive capital allocation stance. He said the company is positioned to pursue M&A tuck-ins to accelerate QNX growth, and may look at buybacks opportunistically.

The stock is up sharply on the day, but context matters here. BlackBerry’s stock remains down roughly 97% from its all-time high of $147.55 set in June 2008.

The royalty backlog of $950 million and the Q1 guidance beat are the most recent figures underpinning the market’s reaction Thursday.

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