TORONTO, June 25, 2026, 10:02 EDT
- BlackBerry jumped roughly 20% after the company topped fiscal Q1 revenue forecasts and raised its full-year guidance.
- The company raised its revenue guide midpoint by $10 million, a bump of 1.7%. The stock rally moved market value up to roughly 10 times what’s expected in fiscal 2027 sales.
- QNX development-license revenue reached its highest point in eight quarters, an initial sign for future royalty revenue.
- Stifel kicked off coverage with a Buy rating and a $12 target. The broader analyst read on the stock is still mixed.
BlackBerry Limited (NYSE:BB; TSE:BB) surged close to 20% Thursday after its fiscal Q1 print. The company raised its sales guidance, and investors also got more detail on operations. Revenue in the QNX and Secure Communications units each rose by about 25%, while both segments delivered 27% adjusted EBITDA margins.
The stock was last at $10.33 on the New York Stock Exchange, jumping 19.8%. Volume reached 19.4 million shares. SPDR S&P 500 ETF Trust NYSEARCA:SPY slipped 0.1% and Invesco QQQ Trust NASDAQ:QQQ edged up 0.3%. BB’s move stood apart from the broader market.
BlackBerry gave a small bump to its fiscal 2027 revenue outlook, now targeting $594 million to $621 million, up from the previous $584 million to $611 million. That’s a $10 million rise at the midpoint, or about 1.7%. After shares jumped, the company’s market value hit $6.14 billion, around 10.1 times the midpoint of the new guidance.
The report is key here. The share move suggests investors care less about a one-year revenue boost and more about signs BlackBerry’s software business can turn even small sales growth into bigger profit and cash flow.
BlackBerry posted Q1 revenue of $152.9 million, up 26% year over year. QNX brought in $72.3 million, also up 26%. Secure Communications sales climbed 24% to $73.6 million. Adjusted EBITDA jumped 144% to $36.3 million. Operating cash flow landed at $4.6 million, marking the company’s first positive first quarter operating cash flow in nine years, after backing out last year’s patent deal.
“The foundation of the business is stronger than it has been in years,” Chief Executive John J. Giamatteo said in the release. Reuters also quoted Giamatteo saying QNX customers are moving into next-generation software-defined vehicles and that BlackBerry is seeing “really healthy demand.” Reuters
Management pointed to a technical factor driving the stock higher. On the earnings call, Giamatteo told investors that QNX development-license revenue hit an eight-quarter high, calling those licenses “one of the earliest indications of future growth.” He said customers purchase the tools years before cars go into production and royalties begin. MarketBeat
Cash flow is a double-edged story here. CFO Tim Foote said BlackBerry had around $223 million in net cash at the end of the quarter. That nets out to an enterprise value about 45.9 times the middle of the company’s fiscal 2027 adjusted EBITDA outlook, which sits between $119 million and $139 million.
Wall Street added another boost. Stifel analyst Suthan Sukumar started coverage June 24 with a Buy and set a $12 target price. In a note picked up by Intellectia, Sukumar told investors that the market “still misdefines” BlackBerry, calling it a “mission-critical software layer” in physical AI. Benzinga
Mixed calls from analysts on BB in June. StockAnalysis listed eight on the name: one Strong Buy, one Buy, five Hold, one Strong Sell, average rating Hold. Shares moved quickly, so the split stands out.
BlackBerry now sees Q2 revenue between $137 million and $148 million, and adjusted EBITDA in a $20 million to $30 million range, both down from Q1. The company is watching to see if development-license demand will continue to help the QNX backlog and if Secure Communications can move dollar-based net retention near the 100% mark.
