BlackBerry Earnings: Q4 Revenue Rises, Stock Jumps

BlackBerry Limited (BB) reported stronger fourth-quarter results on April 9, 2026, as BlackBerry earnings reflected improved revenue and margins driven by QNX and Secure Communications. Management raised fiscal 2027 revenue guidance, lifting the share price.

Q4 Results and Segment Performance

BlackBerry said in a press release on April 9, 2026, that fourth-quarter revenue reached $156 million, up 10% year over year. GAAP net income was $24 million, reversing a loss from the prior year. GAAP earnings per share (EPS) were $0.04, while adjusted EPS rose to $0.06. Adjusted net income increased 92% to $34 million, and adjusted EBITDA, a proxy for operating profit, rose 71% to $36 million. GAAP operating income was $23 million, with a gross margin of 77.8%, up 4.3 percentage points. Operating cash flow totaled $46 million.

For fiscal 2026, BlackBerry reported total revenue of $549 million and GAAP net income of $53 million. Adjusted EBITDA was $107 million, adjusted EPS was $0.16, and operating cash flow was $50 million.

The QNX segment posted record quarterly revenue of $79 million, up 20% year over year. It delivered an adjusted gross margin of 84% and adjusted EBITDA of $21 million, a 27% margin. The segment holds a royalty backlog of $950 million and is embedded in more than 275 million vehicles worldwide. CEO John J. Giamatteo said, "QNX is now a Rule of 40 business," referring to the combined metric of revenue growth and profitability.

Secure Communications returned to growth with revenue of $73 million, up 8% year over year. Its annual recurring revenue (ARR) reached $218 million, a 5% increase, while dollar-based net revenue retention rose to 94%. The segment posted a 72% adjusted gross margin and $20 million in adjusted EBITDA, also a 27% margin, up 55% year over year. Licensing revenue was about $5 million, with adjusted EBITDA near $6 million.

Guidance and Capital Allocation

BlackBerry guided first-quarter fiscal 2027 revenue between $132 million and $140 million, including QNX revenue of $60 million to $64 million, Secure Communications revenue of $66 million to $70 million, and licensing revenue of about $6 million. Adjusted EBITDA guidance ranged from $14 million to $22 million, with QNX expected to contribute $4 million to $8 million and Secure Communications $14 million to $18 million. Non-GAAP basic EPS was projected at $0.02 to $0.03, with operating cash flow expected between breakeven and negative $10 million.

For full fiscal 2027, the company forecast total revenue of $584 million to $611 million, with QNX revenue of $290 million to $307 million, Secure Communications revenue of $270 million to $280 million, and licensing revenue around $24 million. Adjusted EBITDA was guided to $110 million to $130 million, including $69 million to $81 million from QNX and $57 million to $65 million from Secure Communications. Non-GAAP basic EPS was projected at $0.15 to $0.19, with operating cash flow near $100 million. The outlook assumes sustained demand for QNX in automotive and embedded systems and growth in Secure Communications driven by rising demand for digital sovereignty solutions and expanding defense budgets.

The company ended fiscal 2026 with $432 million in cash and investments, up $22 million year over year. It repurchased $60 million of stock and received about $38 million in deferred proceeds from the completed sale of Cylance to Arctic Wolf. Shares rose roughly 10% on April 9, 2026, with an immediate post-announcement gain of 3.4%, translating to an estimated $69 million increase in valuation.