BlackBerry Earnings Beat, Raises 2027 Outlook

BlackBerry Limited reported fiscal second-quarter earnings that beat consensus on Sept. 24, 2026, driven by record performance at its QNX software unit. The company raised its fiscal-2027 revenue and profit guidance.

Second-Quarter Results and Cash Flow

For the quarter ended Aug. 31, 2026, BlackBerry reported revenue of $163.3 million, a 26% increase from $129.6 million a year earlier. Adjusted EBITDA rose 81% year over year to $47.0 million, while adjusted basic earnings per share reached $0.07. GAAP net income was $33.9 million, with GAAP basic EPS of $0.06. Operating cash flow totaled $29.3 million, and cash and investments stood at $447.1 million. The company said this marked its second consecutive quarter meeting the Rule of 40, a combined measure of revenue growth and profit margin.

Segment revenue showed Secure Communications grew 2% to $60.9 million, while Licensing revenue increased to $22.1 million from $6.6 million in the prior year.

Raised Guidance and QNX Growth

BlackBerry raised its fiscal-2027 revenue guidance to $616 million–$636 million from $594 million–$621 million. It set full-year adjusted EBITDA guidance at $141 million–$158 million and adjusted basic EPS guidance at $0.19–$0.22. The company expects operating cash flow of about $115 million for the fiscal year ending Feb. 28, 2027. The EPS guidance excludes any effects from potential share repurchases not completed as of Sept. 24.

For the third quarter ending Nov. 30, 2026, BlackBerry forecast total revenue of $143 million–$154 million, adjusted EBITDA of $28 million–$37 million, adjusted EPS of $0.04–$0.05, and operating cash flow of $20 million–$30 million. Segment guidance calls for QNX revenue of $82 million–$88 million, Secure Communications of $55 million–$60 million, and Licensing near $6 million.

QNX led the upside with record quarterly revenue of $80.3 million, up 27% from $63.1 million a year earlier, and an adjusted gross margin of 87%. The company secured its first Alloy Kore design win, described as the largest in QNX history. Fiscal-2027 QNX revenue guidance is $315 million–$325 million, with adjusted EBITDA of $95 million–$105 million. Management set fiscal-2027 revenue guidance for Secure Communications at $260 million–$270 million with adjusted EBITDA of $50 million–$58 million, and Licensing revenue at approximately $41 million with adjusted EBITDA near $36 million.

John J. Giamatteo, BlackBerry’s CEO, said, “Our strong second quarter performance provides further evidence that BlackBerry’s profitable growth model is working.” The record QNX performance and raised guidance signal near-term growth and margin expansion as the company progresses through fiscal 2027.