Canada's BlackBerry Q2 revenue, adj profit rise on QNX strength
Overview
Canada enterprise software maker's fiscal Q2 revenue rose 26% yr/yr to $163.3 mln
Adjusted net income for fiscal Q2 increased 79% yr/yr to $43.2 mln
QNX segment revenue grew 27% yr/yr, driven by automotive and embedded markets
Outlook
BlackBerry sees Q3 revenue of $143 mln to $154 mln
Company expects FY27 revenue of $616 mln to $636 mln
BlackBerry forecasts Q3 adjusted EPS of $0.04 to $0.05
Result Drivers
QNX SEGMENT GROWTH - Co said QNX revenue rose 27% yr/yr, driven by strength in core automotive business and embedded markets
MAJOR DESIGN WIN - Alloy Kore design win, largest in QNX history, added over $100 mln to QNX royalty backlog
SECURE COMMUNICATIONS STABILITY - Secure Communications remained a stable and profitable contributor following a particularly strong first quarter
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | $163.3 mln | ||
Q2 Adjusted Net Income | $43.20 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 50 three months ago
Reuters Recommended Reads
Sept 24 - Canada's Vecima Networks Q4 adjusted EPS slightly beats; 2026 revenue outlook lifted
Sept 23 - Canada's AGF Management Q3 profit misses estimates on higher costs
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)