BB Stock Extends Earnings Day Rally – Analyst Says QNX, Secured Communications Might Be Niche But Are ‘Solid Growth Runways’ For BlackBerry

Morningstar analyst William Kerwin said the firm likes the momentum of QNX software platforms in the automotive sector and expects to see long-term secular growth as vehicles become increasingly software-driven.

• Kerwin added that BlackBerry's core technology is the driving force behind both units.
• For Q1, BlackBerry reported total revenue of $152.9 million and adjusted earnings per share of $0.04.
• For the full year, it expects total revenue in the $594 million to $621 million range and adjusted EPS between $0.16 and $0.20, with the midpoint of both metrics ahead of the consensus estimates.

Shares of BlackBerry (BB) extended their earnings-day rally into Friday, following the company’s solid first-quarter results and forecast, which was well received by Wall Street.

At the time of writing, BB stock was up nearly 7% after closing with 20% gains the previous day.

BlackBerry Is Dominating Niches With Solid Growth Potential

Morningstar analyst William Kerwin said that the company reported good first-quarter (Q1) results that were “well above guidance” and praised management for emphasizing operating efficiency, profitability, cash flow, and shareholder returns.

The analyst said the company’s QNX and Secured Communications businesses offer investors an attractive market niche, while noting that BlackBerry's core technology is the driving force behind both units.

“These are both relatively low-revenue niches of the market, but with solid growth runways and strong incumbency for BlackBerry,” Kerwin said in a note. “We like the momentum for QNX software platforms in automotive, which we expect to see long-term secular growth as vehicles become increasingly software-driven … BlackBerry does well in financial institutions and governments with high security requirements, regulations, and risk aversion.”

BlackBerry’s Q1 Surprised Everyone

CIBC said the company's results were "excellent" as both units outperformed in a seasonally softer quarter, and they expect 2027 to bring a "step-change in growth" for BlackBerry, per TheFly.

RBC said BlackBerry "is moving into a period of headline growth following a period of transformation." TD Securities said BlackBerry is well-positioned to benefit from physical AI "should the opportunity materialize."

For Q1, BlackBerry reported a 26% surge in total revenue to $152.9 million, ahead of the $137.9 million estimate polled by Fiscal AI. It reported adjusted earnings per share (EPS) of $0.04, one cent ahead of the $0.03 estimate.

For the full year, it expects total revenue in the $594 million to $621 million range and adjusted EPS between $0.16 and $0.20, with the midpoint of both metrics ahead of the consensus estimates.

What Do Retail Traders Think About BB?

On Stocktwits, retail sentiment toward BB stock remained in 'bullish' territory over the last 24 hours.

One user on the platform said BlackBerry is a profitable company with a huge growth potential in physical AI edge computing.

View this Stocktwits post

BB stock has nearly tripled in value so far this year and more than doubled over the past 12 months, outperforming the S&P 500.

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