BlackBerry Retail Traders Eye Break Above $5 Psychological Resistance After Beat-and-Raise Q1

Revenue fell 1.4% from a year earlier to $121.7 million but exceeded the $107 million-$115 million consensus estimate.

Retail investors’ optimism regarding BlackBerry Ltd. (BB) stock abounded late Tuesday after it rallied 7% in extended hours in reaction to the company’s quarterly results.

On Stocktwits, retail sentiment toward the BlackBerry stock turned to ‘extremely bullish’ (83/100) by late Tuesday from the ‘bullish’ mood a day ago, with the message volume rising to a ‘high’ level.

The Ontario, Canada-based intelligent software and services company reported adjusted earnings per share (EPS) of $0.02 for the first quarter of the fiscal year 2026. This exceeded the guidance range (-$0.01 to breakeven) issued in early April.

The company said it achieved profitability on a GAAP basis for the first time since the fourth quarter of 2022. The net income was $1.9 million on a reported basis and $12.3 million on an adjusted basis.

Revenue fell 1.4% year over year (YoY) to $121.7 million but exceeded the $107 million-$115 million guidance. Among segments, QNX, the company’s operating system targeting the embedded systems market, contributed $57.5 million, and Secure Communications accounted for $59.5 million. 

Gross margin expanded YoY to 74.2% from 72.9%. 

CEO John Giamatteo said, “Both our QNX and Secure Communications divisions continue to execute effectively against their strategies, beating both top line and profitability expectations.”

“BlackBerry’s solid balance sheet and plan for continuing profitability and cash generation this fiscal year enable us to allocate capital efficiently, with $10 million of share buybacks executed this past quarter.”

BlackBerry guided second-quarter adjusted EPS in the range of breakeven results to $0.01 and revenue to $115 million-$125 million. This compares to the consensus estimates of $0.01 and $122.42 million, respectively.

The company maintained its full-year adjusted EPS guidance but raised the revenue guidance to a range of $508 million-$538 million from $504 million-$534 million.

A bullish watcher said they expected the stock to rise to $5.5 by Friday. The stock settled Tuesday’s session up 0.23% at $4.33. More watchers also flagged a break above $5 as very important.

Another user said the stock is “so undervalued” and termed the after-hours spike “very impressive.”

BlackBerry, considered a “meme stock”, has gained about 15% this year, although it is trading off its mid-February highs of $6.24.

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