BlackBerry Q2 Earnings Show ‘Profitable Growth Model Is Working,’ CEO Says

QNX revenue rose 27% year over year to $80.3 million, marking a record quarter for the automotive software business.

• BlackBerry raised its fiscal 2027 revenue forecast to between $616 million and $636 million.
• The firm expects third-quarter revenue of $143 million to $154 million.
• CEO John Gimatteo said that the company’s Q2 performance shows that “BlackBerry’s profitable growth model is working.”

BlackBerry (BB) shares dropped on Thursday morning after the company reported fiscal second-quarter earnings and revenue above Wall Street estimates and raised its full-year revenue outlook, driven by record growth in its QNX automotive software business.

BB stock fell as much as 1.5% at market open amid broader market weakness and was among the top-trending tickers on Stocktwits at the time of writing. 

The firm reported earnings per share of $0.07, beating Wall Street’s forecast of $0.04, as per Koyfin data. Revenue came in at $163.3 million, ahead of the consensus estimate of $145 million by over 12%. 

“Our strong second-quarter performance provides further evidence that BlackBerry’s profitable growth model is working,” CEO John Giamatteo said in a statement. BlackBerry raised its fiscal 2027 revenue forecast to between $616 million and $636 million after QNX posted record quarterly revenue. 

QNX Revenue Jumps 27% On Automotive Demand

Revenue from QNX, BlackBerry’s software division focused on safety-critical systems, rose 27% year over year to $80.3 million in the second quarter (Q2).

QNX software is used in automotive, robotics, medical devices and industrial applications, although automotive remains the core of the business. Automakers using QNX include Audi, General Motors, Hyundai and Mercedes-Benz. The software can support multiple vehicle systems, including digital cockpits, advanced driver-assistance systems and body-control applications.

The company also reiterated that Coretura, a joint venture between Volvo Group and Daimler Truck, selected BlackBerry’s QNX software for its next-generation commercial vehicles. The company said the contract could add more than $100 million to QNX’s royalty backlog, making it BlackBerry’s largest QNX contract to date.

BlackBerry Raises Fiscal 2027 Revenue Outlook

BlackBerry expects third-quarter revenue to come in between $143 million and $154 million, compared with the $149.6 million analyst consensus. For the full fiscal year, the company raised its revenue outlook to $616 million to $636 million. 

“QNX delivered record performance in the quarter, driven by strength in our core automotive business,” Giamatteo said. “As we enter the second half of the year, we remain focused on disciplined execution, investing behind our growth opportunities.”

BlackBerry’s shares have gained about 125% year-to-date, and over 90% in the last 12 months. 

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